To what extent government intervention... Labor policy ‘test bed’ in CU logistics negotiations

[CU agreement, testbed for direct negotiation ②] Minister Jin Du-jin… Other labor-management relations equity tasks

[Edit frequently]CUAn agreement between labor and management over logistics was reached and the conflict was resolved. The effectiveness of the agreement and the normalization of logistics are now key. We look at the meaning of government intervention, the logistics recovery situation, and the impact it will have on other labor disputes.

The logistics dispute between the CU branch of the convenience store branch of the Korea Confederation of Trade Unions (KCTU), the Public Transport Workers' Union, and the Freight Solidarity Headquarters (Cargo Solidarity) was resolved after 24 days of strike. As ministers of the relevant ministries and members of the ruling party visit the negotiation site in person and begin mediation, discussions surrounding the extent to which the government will be involved in future industrial disputes are expected to begin in earnest.

According to the Ministry of Employment and Labor and the logistics industry on the 29th, the CU Branch of the Convenience Store Branch of the Korea Freight Solidarity for Solidarity and BGF Logis tentatively agreed to a collective agreement through the fifth round of negotiations at 5 am on this day. The agreement included a 7% increase in transportation fees, guaranteed paid vacation once a quarter four times a year, immunity from civil and criminal charges for the cargo union, and cancellation of the injunction prohibiting business interruption. BGF Logis and the Korean Freight Alliance decided to hold a signing ceremony at 11 a.m. on this day and sign the agreement, but time was delayed in the process of coordinating detailed items, and the final agreement was postponed.

The two sides held all-night negotiations at the Jinju Employment and Labor Office in Gyeongsangnam-do starting at 8 p.m. the previous evening. Minister of Employment and Labor Kim Young-hoon and Democratic Party of Korea lawmaker Kim Ju-young also attended the scene and supported mediation. With the conclusion of the agreement, the blockade of major logistics bases such as Jinju and Jincheon will be lifted, and BGF Retail plans to begin 100% normalization of logistics during the week.

The labor community is evaluating this settlement positively in that the protracted dispute has entered a resolution phase. It seems meaningful that the government is taking on a mediating role in a situation where, in addition to the prolonged strike, there has been an on-site death accident.

The business community is reacting cautiously regarding the scope of government involvement in the field. It is a view that the presence of a minister and a sitting member of the National Assembly at the negotiation site in a situation where the main office's obligation to negotiate is not clearly defined by law may have placed a significant burden on the management.

The management community is cautious about the level of intervention... Yellow envelope method ‘cutting board’

The special nature of the case is cited as the reason behind government arbitration. On the 20th, a truck hit union members at a rally in front of the convenience store CU Jinju Logistics Center, killing one person and injuring two others. Afterwards, the blockade continued to the Jincheon Logistics Center, which serves as a national hub, and some franchisees responded that sales had fallen by 30%. There is a possibility that the government has begun making on-site adjustments in consideration of the social costs of prolonging the situation.

There are also critical views surrounding the consistency of the government's response. The Ministry of Employment and Labor initially drew a line regarding this issue, saying it was not related to the Yellow Envelope Act, but after the fatal accident, the level of response changed, with the minister directly mediating at the negotiation site.

There is also interest in whether this arbitration is in line with the government's labor policy, which advocates improving the dual structure of the labor market. If a similar dispute occurs in the future, it is expected that the key issue will be the standards and fairness under which the government will decide whether to intervene. As multi-level consignment structures are common due to the nature of the logistics industry, it is highly likely that discussions will continue surrounding the scope of negotiation responsibilities of higher-level corporations and the mediation role of the government.

This case is expected to have a significant impact on wages and collective agreements (collective wage agreements) in the logistics and distribution industry in the second half of the year. As a precedent is established for top logistics corporations to engage in direct negotiations, there are observations that unions in other industries may make similar demands. There still remains controversy over the representativeness of the labor union, which accounts for less than 10% of all delivery drivers, as the de facto representative bargaining agent.

In the end, this settlement is evaluated as an example that goes beyond a single logistics dispute and exposes the scope of the government's intervention in labor disputes, the negotiation responsibilities of top business operators, and the negotiating power and representativeness of minority unions.

However, there is also a cautious opinion that it is difficult to view this agreement as a precedent in which the usability of the original contract was immediately recognized. Bang In-tae, a lawyer at Daeryun Law Firm, said, “This issue was negotiated by BGF Logis, not BGF Retail,” and added, “It is difficult to view this as a case where the usability of the primary contract across the logistics industry was immediately recognized.”

He added, "If the number of cases in which the relationship between top logistics companies that set actual logistics operation standards and on-site borrowers becomes an issue increases, it is possible that in the future it will lead to discussions on bargaining structures at the industry level beyond individual corporate units."
 

Reporter Hwang Jeong-won (garden@sidae.com)

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To what extent government intervention... Labor policy ‘test bed’ in CU logistics negotiations (Shortcut)