Talks between BGF Logistics, the logistics subsidiary of BGF Retail, and the Cargo Truckers' Solidarity Division of the Korean Confederation of Trade Unions (KCTU) have been settled. With the agreement, the logistics disruption at CU convenience stores has effectively been wrapped up for now.

BGF Logistics said on the 30th that it signed a collective agreement with the Cargo Truckers' Solidarity Division in a conference room at the Jinju branch office of the Ministry of Employment and Labor (MOEL). BGF Logistics said the result came after days of talks in which both sides put the normalization of product supply and the stable operation of stores as the top priority.

Lee Min-jae (left), CEO of CU BGF Logistics, and Kim Dong-guk, Chairperson of the KCTU Cargo Truckers' Solidarity, shake hands at the signing ceremony for a collective agreement at the Ministry of Employment and Labor (MOEL) Jinju Branch Office in Jinju, South Gyeongsang Province, on the 30th. /Courtesy of News1

The improvements in working conditions under this agreement apply to all transport workers who work with BGF Logistics, regardless of their affiliation or whether they are union members. The agreement is said to include a 7% increase in freight rates and, in addition to the existing one paid day off per week, the guarantee of one additional paid leave day per quarter.

At 11 a.m. on the day the agreement was signed, the blockades at the logistics centers and ready-to-eat food plants were lifted. Deliveries will resume sequentially after internal maintenance at each center.

BGF Retail plans to step in to support franchisees affected by the disruptions. The company will review store damages caused by the logistics issues and gather on-site feedback to prepare support measures.

Supply of products such as ready-to-eat meals and fresh foods is also expected to resume. After the blockades were lifted and internal maintenance was conducted, operations at the logistics centers resumed with Jincheon as the hub, and the company is aiming to normalize all centers and plants within this week.

A BGF Logistics official added, "We will use this opportunity to build a healthy logistics ecosystem and will continue to do our best for customer convenience and the stable operation of franchisees."

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