"Why Must We Bear the Damage?" Paris Baguette Franchise Owners Suffering from Labor Conflicts

Minnochoeng and Hannochoeng Union Member Competition
Store Owner "Sales Drop When Rallies Are Held
Why Should We Suffer from Union Conflicts?"

[Asia Economy Reporter Lim Hye-seon] It has been revealed that only the innocent franchise owners (self-employed) are suffering from the turf war between the Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU) to secure Paris Baguette bakers as union members.

Membership Battle Between Unions Escalates to Litigation

According to industry sources on the 5th, the union affiliated with KCTU filed a complaint with the Ministry of Employment and Labor on the 1st, accusing the company of unfair labor practices. They claim that the company intervened in the withdrawal of KCTU union members by using field managers (BMC) affiliated with the representative union, FKTU. KCTU alleges that the company paid rewards of up to 50,000 KRW per person to field managers who persuaded bakers to leave KCTU and join FKTU. KCTU has started tent sit-ins in front of Paris Baguette stores across various locations. So far, protests have been held not only at SPC headquarters but also at dozens of franchise stores.

FKTU officially denied KCTU’s claims. The union affiliated with FKTU stated in a press release, "KCTU-affiliated unions have previously filed a lawsuit at the Seoul Central District Court seeking nullification of union establishment, arguing that BMCs, who are former manufacturing workers, are managers and thus not eligible as union members." They criticized, "Now, they are making unverified unilateral claims based on a single former BMC." Furthermore, they said, "The level of defamation against BMC workers has gone too far and can no longer be tolerated," adding, "We will no longer endure this, will verify the facts and correct them, and will not hesitate to take legal action against the spread of false information and defamation."

Only Franchise Owners Suffer Amid Inter-Union Conflict

The inter-union conflict among Paris Baguette bakers began in December 2017. At that time, the number of KCTU-affiliated union members was about 700. Around 1,000 bakers, who were opposed to KCTU’s union activities focusing on external political struggles, established a separate union affiliated with FKTU. Following the withdrawal of some KCTU members, the FKTU-affiliated union currently has about 4,000 members, accounting for 90% of the total union members, and has obtained the status of the representative negotiating union. Meanwhile, the current number of KCTU union members is reported to be around 300.

To attract members, KCTU held membership recruitment events at the end of last year and early this year, offering gifticon presents. FKTU responded with a membership recommendation gift certificate event in April.

The competition for membership between the two major trade union federations representing the Korean labor movement is deepening the worries of franchise owners. Many franchise stores are experiencing difficulties in operation due to bakers attending rallies. One Paris Baguette franchise owner said, "When KCTU protesters hold rallies in front of the store, sales drop by nearly 30% compared to usual," adding, "We are already struggling due to COVID-19, so I don’t understand why we have to suffer because of the conflict between unions."

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