London Bagel Museum (corporate name LBM), which has been embroiled in controversy over alleged employee death from overwork, issued an apology promising a sweeping overhaul of its working conditions, but consumer reaction has been cold. The core issues—fundamental fixes to its employment structure and workload intensity—are lacking.
According to the industry on the 25th, LBM on the 17th released an apology in the name of CEO Kang Kwan-ku and announced a "working environment improvement plan" centered on ▲ enhancing employment stability ▲ complying with statutory working hours ▲ strengthening the safety and health system. Kang said, "We will reexamine the working environment from the ground up to create a stable and safe environment and lay the groundwork to grow together with our members."
However, industry reaction continues to be that the company sidestepped the core issues. Consumers on social media (SNS) also note, "The essence of the problem remains unchanged." That is because the employment structure centered on short-term contracts and the operating method that left employees repeating long hours are expected to remain largely intact. LBM's plan is a step forward in some respects, but observers say it remains to be seen how tightly the制度 improvements will be implemented.
Among the items LBM mentioned in its apology, the biggest change is introducing one-year contracts after a three-month probation to reduce short-term contracts. At a National Assembly audit last month, LBM was criticized for using "split contracts" on a monthly or quarterly basis. If the working period is less than three months, dismissal on the same day is possible, and the employer does not have to pay a dismissal notice allowance equal to one month's wages.
LBM cited the three-month probation and one-year contracts as a corrective step, but labor circles say the fundamental problem remains. Switching from ultra-short-term contracts to one-year contracts does not completely resolve precarious employment.
Jeong Ye-ji, a labor attorney at BF Labor Law Office, said, "The fact that the probationary period is three months is not illegal under the Labor Standards Act, but as a matter of principle, I believe employees should be converted to regular positions immediately after probation." She added, "Even if one-year contract employment remains the basic form after probation, issues such as pressure to renew and a lack of job security could recur. After a year and three months, can't the employer terminate the contract? In the end, it's a stopgap."
In fact, LBM's employment instability stands out compared with similar corporations. According to a recently released report by the Research Institute for Workers as Citizens, as of March, coffee franchise Mega Coffee had a regular employee ratio of 71.6% and Ediya Inc. had 79.4%, while LBM—across four brands including London Bagel Museum—had only 3.2% (14 people) of its total 750 workers as regular employees. LBM said, "Through professional labor and HR consulting, we will design a workforce structure optimized to our business characteristics and gradually increase the ratio of regular employees."
LBM also said headquarters will directly monitor work records and cross-check actual working hours by linking fingerprint scanners and security system logs. While this appears to be a step to comply with working hours, some worry it may simply strengthen worker surveillance. The core of the controversy lies in excessive workloads and staff shortages, issues that cannot be solved by tightening attendance management alone.
LBM also said it will increase staffing by up to 1.5 times during busy periods to reduce workload. However, merely adding staff makes it hard to address insufficient skill levels, quality and safety variances, and inefficiencies caused by frequent turnover. A franchise industry official said, "In bakeries, worker proficiency determines quality, safety, and operational efficiency. If an employment structure centered on fixed-term contracts remains, problems can arise."
In the franchise industry, there is consensus that while LBM's announcement outlines a broad direction, more specific制度 design is needed for real change. An industry official said, "Rather than simply saying staffing will be increased 1.5 times during busy periods, the company should set detailed benchmarks such as daily production targets, staffing per store, and peak-time deployment," adding, "Clarifying break times and expanding systematic job training should also proceed together."