Unionized Cargo Workers and BGF Logis Reach Agreement to End 10-Day Blockade

Unionized cargo workers and convenience store chain CU's logistics affiliate signed a collective agreement Thursday, ending a 10-day blockade of the chain's key logistics centers.

Cargo Truckers Solidarity, an affiliate of the militant umbrella Korean Confederation of Trade Unions, and BGF Logis sealed the agreement raising freight rates and improving working conditions in a signing ceremony at the labor ministry's branch office in the southeastern city of Jinju.

The conflict had escalated following a fatal accident on April 20, where a union member was killed by a non-union truck in front of the CU logistics center in Jinju, 290 kilometers from Seoul.

The signing ceremony was originally scheduled to be held the previous day but was postponed by one day as both parties failed to agree on measures to restore the honor of the deceased union member in his 50s.

The Cargo Truckers Solidarity views management's recognition of their bargaining autonomy and union status -- previously denied -- as the agreement's greatest achievement. The two sides agreed to guarantee the basic labor rights of cargo workers by regularizing collective bargaining and withdrawing disadvantages resulting from strikes.

Such an agreement followed the recent enactment of the so-called yellow envelope act that made prime contractors more accountable for subcontracted workers, while restricting businesses from claiming damages from striking workers.

Higher-level logistics firms previously avoided direct talks with truck owners due to a multilayered outsourcing structure.

Both parties also agreed to increase transportation fees by 7 percent and to guarantee paid leave once a quarter to truck drivers.