"Jincheon Logistics Center Contract Conversion?" Deepening Conflict After Private Equity Sale Between 'Mom's Touch' Haemaro vs. Union

Haemaro: "It is only a partial logistics subcontract to supplement logistics overload"
Union: "A long-term plan by management to weaken the union"

[Asia Economy Reporter Choi Saeng-hye] The private equity management team of Haemaro Food Service Co., Ltd., which operates the burger franchise 'Mom's Touch,' and the Haemaro-affiliated labor union are engaged in ongoing conflicts. The core issue in this conflict is the outsourcing conversion of the Jincheon logistics center. Currently, all employees at the Jincheon logistics center belong to the union, and the union strongly objects, claiming that the management intends to gradually convert union members from regular employees to temporary workers through the outsourcing conversion of the logistics center, thereby strengthening the company's power.

On the 12th, the Haemaro Food Branch of the Korean Confederation of Trade Unions Service General Labor Union issued a statement urging, "Haemaro Food must immediately stop the attempt to outsource the Jincheon logistics warehouse, which violates the employment security assurances in the sales contract."

The Haemaro Food Service logistics center located in Jincheon, Chungbuk, serves as a key hub supplying goods on a Monday, Wednesday, and Friday basis to 1,250 franchise owners. In addition, it handles logistics supplying B2B branches and deals with potatoes, chicken, shrimp, and other items needed for overseas sourcing. The employees belong to Haemaro as regular workers and are union members. The union's position is that the headquarters' big plan is to dismantle the union's power by converting union members to temporary employment through the outsourcing conversion of the logistics center.

Haemaro Food Service acknowledged the partial outsourcing conversion of some logistics volumes. A Haemaro Food Service official explained, "As sales increase and the number of franchise stores expands, logistics have become overloaded, so we are supplementing this by outsourcing some logistics. Some outsourcing existed before, and some is planned for the future." They added, "We will not outsource the logistics center employees," emphasizing, "There are no plans to convert existing Jincheon logistics center employees to outsourcing in the future."

However, a union official hinted, "Even if they say they will not outsource employees this time, it will gradually change to indirect employment," and added, "By outsourcing some volumes, they intend to secure inventory so that even if union members strike due to unfair orders from management, business operations will not be disrupted." According to this official, the losses the headquarters would have to consider if union members strike for just one day through collective action amount to tens of billions of won.

Haemaro Food Service has been in conflict with internal employees since the private equity sale in November last year. The Haemaro Food Service branch opposed the sale by the founder and largest shareholder, former Chairman Jeong Hyun-sik, and held its inaugural general meeting in December last year at Gangdong-gu Office in Gangdong-gu, Seoul, where the headquarters is located, officially establishing the labor union as a branch of the industrial union.

Since then, Haemaro Food Service issued an official statement promising employment stability and improved treatment for employees, but it became embroiled in controversy due to personnel moves such as reinstating former director Kim Tae-hoon, who led the private equity sale, as an executive director. Haemaro Food Service reportedly notified union members that "if company internal information is distorted, fabricated, and leaked to the media, disciplinary and civil liability will be imposed," and did not hesitate to say, "Union members whose names are disclosed will be excluded from individual salary negotiations."

An internal Haemaro Food Service official said, "The company is trying to discard employees who have been the foundation of the company's growth like used goods," and added, "We want to clearly show through this opportunity that our union will not collapse weakly in the entire franchise industry."

This content was produced with the assistance of AI translation services.