"Mart Employees Strike and Bakeries Face Supply Shortages" ... Retail Sector Hit by 'Sudden Disaster' During Holiday Peak

Partial Strike by Some Cargo Solidarity Union Members at Nationwide SPC Logistics Centers
Department Store Imported Cosmetics Sales Staff Also Strike for Two Days

[Asia Economy Reporter Jo In-kyung] Ahead of Chuseok, the biggest shopping season of the year, service industry workers across the distribution sector have begun strikes, which is expected to increase inconvenience for consumers.

According to related industries on the 18th, since the 15th, the Korean Confederation of Trade Unions (KCTU) Cargo Solidarity Union has been striking by refusing transportation at 10 SPC Group logistics centers nationwide. The strike, which erupted from conflicts between transportation companies and unions over the operation routes of Paris Baguette delivery vehicles, started in the Gwangju region and has spread nationwide, disrupting bread supply to over 3,400 franchise stores.

So far, about 200 vehicles belonging to KCTU Cargo Solidarity Union members have joined the transportation refusal, halting 30% of all delivery vehicles.

In particular, the KCTU Cargo Solidarity Union in the Gwangju and Jeonnam areas has been on strike for over two weeks. A Paris Baguette franchise owner in Gwangju, who suffered damages due to the transportation refusal and obstruction of driver deployment, appealed directly for help on the Blue House's national petition site on the 14th.

Damage to other franchise owners is also snowballing. Bakeries have been unable to provide fresh bread properly for several days, failing to keep promises with customers. One store owner lamented, "It feels like a thunderbolt during the holiday peak season," adding, "I have not been able to open for morning sales for several days and am trying to bring in supplies myself, but it is not an easy situation."

Homeplus female workers are holding a press conference after collectively shaving their heads in protest against the closure and sale of major stores by the operator MBK Partners in front of MBK at D-Tower, Gwanghwamun, Seoul, last May. Photo by Kim Hyun-min kimhyun81@

The KCTU Mart Industry Labor Union Homeplus branch will strike for three days from the 18th to the 20th. About 80 out of 138 stores nationwide are targeted, with approximately 3,500 union members expected not to come to work.

The Homeplus union claims that since the major shareholder changed to the private equity fund MBK Partners, the company has been engaging in asset liquidation through store closures and sales, causing employment insecurity among workers. The union demands, "This is corporate plundering and real estate speculation," and calls for "sustainable growth and employment stability."

On the other hand, the company argues that the "employment stability" cited by the union as grounds for the strike has already been emphasized and promised multiple times and is losing credibility even internally. A Homeplus official said, "All employees of stores that have closed or will close have been reassigned," adding, "Only about 10% of all employees belong to the union, and all stores are operating normally, so there will be no inconvenience to customers."

The L'Or?al Korea, Chanel Korea, and Shiseido Korea branches, affiliated with the Department Store and Duty-Free Sales Service Labor Union under the KCTU Service Federation, will also begin a general strike from the 18th to the 21st, demanding improvements in working conditions and treatment. Most department stores plan to close on the day before Chuseok, the 19th, and on Chuseok day, the 20th, or on the 20th and the following day, the 21st, so union members have announced general strikes on different schedules at each store.

Previously, union members had engaged in labor actions by coming to work without uniforms since the 14th. This is the first time that service workers at luxury cosmetics stores in department stores have gone on a general strike during the Chuseok holiday.