Cargo Strike Enters One Month... Only Bakery Owners Suffer

Democratic Labor Union Cargo Solidarity Faces Growing Losses Due to SPC Group Transport Refusal
Headquarters States "Transport Company Labor Issue... Unrelated to Primary Contractor"

On the afternoon of the 26th, a Paris Baguette store in Dongdaemun-gu, Seoul. Most of the shelves that should be filled with bread are empty.

[Asia Economy Reporter Seungjin Lee] As the transportation refusal by the Cargo Solidarity of the Korean Confederation of Trade Unions (KCTU) Public Transport Workers' Union continues for nearly a month, the sales losses of Paris Baguette franchise owners nationwide are increasing. Due to delivery delays, bread is not arriving at stores on time, causing difficulties in product sales.

No Bread in the Bakery

On the afternoon of the 26th at a Paris Baguette store in Dongdaemun-gu, Seoul, more than half of the shelves that should have been filled with bread were empty. The store owner, Ji-young Kwon (50, pseudonym), expressed frustration, saying, "It's been several weeks with no measures taken, and it's suffocating." Kwon, who took over the store with the hopeful dream of having 'my own shop' in August, faced a sudden crisis of bread not being delivered on time in less than a month of operation.

Kwon said, "There should be three deliveries a day, but since the strike, only one delivery a day is coming. Once the bread displayed in the morning is sold out, no more stock comes in, so we have no choice but to close the business." Due to a significant shortage of delivery personnel after the strike, the system of placing daily orders with headquarters has been suspended, and currently, orders can only be placed for delivery volumes two days later.

With bread not being supplied on time, sales have taken a direct hit. Kwon lamented, "Due to the nature of the commercial district, many customers buy specific bread at specific times every day, but when the products they look for are not available, they often leave immediately. This repeated situation is causing us to lose regular customers."

It is reported that sales have decreased by at least 20% since the delivery disruptions, but receiving compensation for the damages is also uncertain. Kwon sighed, "It is clear that sales have dropped since the strike, but I have no idea whether this can be recognized as damage caused by delivery disruptions, and even if recognized, whether actual compensation can be received. We can only hope the strike ends soon."

On the 24th, members of the Cargo Solidarity Union of the Korean Confederation of Trade Unions held a sit-in protest in front of the SPC Samlip Cheongju factory. (Photo by Yonhap News)

One Month of Transportation Refusal... General Strike in October

Although the suffering of franchise owners continues, the Cargo Solidarity's transportation refusal is expected to be prolonged as both the union and management maintain hardline stances. Moreover, a general strike by the KCTU is even forecasted for October.

This transportation refusal began on the 2nd at the Honam Shani Gwangju factory when the Cargo Solidarity demanded SPC Group to implement adjustments to logistics routes and dispatches, and has since spread to SPC workplaces nationwide. At the Sejong factory, about 100 Cargo Solidarity members have been blocking the factory gate and staging a sit-in since the 17th. As a result, the flour supply at the Sejong factory dropped from the usual 800?1000 tons per day to 100?150 tons on the 17th. On the 23rd and 24th, about 300 Cargo Solidarity members held an overnight sit-in in front of the SPC Samlip Cheongju factory. Subsequently, on the 26th, the Cargo Solidarity regrouped at the Cheongju factory and, as of the morning of the 27th, held a rally to block logistics shipments, raising concerns about potential physical clashes between the Cargo Solidarity and the police.

SPC stated that the Cargo Solidarity's demands are matters to be negotiated between the logistics subsidiary and the transport company's labor-management under consignment contracts, and that the headquarters is unrelated. In response to the transport company's demands, the headquarters increased the number of vehicles by two, and during negotiations over routes between delivery drivers affiliated with the Federation of Korean Trade Unions (FKTU) and the KCTU, conflicts arose over which side would get better routes, leading the KCTU Cargo Solidarity to initiate the transportation refusal.

The National Franchise Owners Association is urging the KCTU Cargo Solidarity, which is causing the logistics crisis, to stop the strike. In a statement, the association emphasized, "(This strike) jeopardizes the survival rights of franchise owners who are in extremely difficult situations and cannot be tolerated for any reason," and called for the parties involved to resolve the issue and end the strike.