CU Franchisees Affected by Cargo Solidarity Strike to Receive Support of 1 Million Won or More per Store

BGF Retail Announces Support Plan for Franchise Owners and Employees
Compensation for Product Shortage Losses Due to Blockade of Logistics Centers
Up to 1 Million Won in Additional Regional and Store-Specific Consolation Payments

BGF Retail, the operator of the convenience store chain CU, announced that it will provide support funds of up to at least 1 million won per store, including compensation for losses and consolation payments, to franchisees affected by last month's strike by the Cargo Solidarity under the Korean Confederation of Trade Unions.

Due to the strike by the Cargo Solidarity under the Korean Confederation of Trade Unions, some CU logistics centers and production facilities have been shut down, causing disruptions in the supply of products including convenience meals. A notice explaining the situation is posted at a CU store. Reader submission

On May 7, BGF Retail stated that it had issued a notice to franchise owners and employees, informing them of this support plan to address damages suffered by franchisees due to logistics instability.

The franchisee support plan is largely divided into store support funds and consolation payments. The store support funds include compensation for low-temperature product shortages and reimbursement for discarded ready-to-eat meals. For all refrigerated and frozen product shortages that occurred between April 5 and 30 due to the Cargo Solidarity strike, the company will cover the entire amount of expected store sales profit as if normal sales had taken place. The reimbursement for discarded ready-to-eat meals will also cover the full amount discarded during the same period.

The consolation payments are an additional form of support beyond compensation for damages, and are divided into regional consolation payments and store-specific consolation payments. Regional consolation payments are scaled up to 300,000 won depending on the extent of supply instability in each area. Store-specific consolation payments are provided up to 700,000 won per store, taking into consideration comprehensive factors such as product shortages and delayed deliveries. Stores meeting these criteria can receive up to 1 million won in consolation payments alone.

The company explained that this support plan was developed after accurately assessing the damages caused by product supply disruptions and actively gathering feedback from franchise owners. The support funds will be reflected in settlement statements on this day and deposited individually on May 8. Through the notice, BGF Retail stated, "We would like to express our gratitude for the trust shown by franchise owners and employees even in these difficult circumstances, and as the headquarters, we will fulfill our role and responsibility to stabilize store operations."

Previously, the CU chapter of the Cargo Solidarity’s Convenience Store Division began a strike on April 7, demanding improved working conditions for cargo workers. During the strike, major logistics centers—including those in Hwaseong and Anseong (Gyeonggi Province), Naju (South Jeolla Province), and Jinju (South Gyeongsang Province)—had their entrances blocked, preventing vehicle departures. Furthermore, access to the BGF Food factory in Jincheon, North Chungcheong Province, was also blocked, resulting in disruptions to product supplies for franchisees.

Although the strike ended after BGF Logis and the Cargo Solidarity reached a collective agreement on April 30, affected CU franchise owners are refusing to accept products delivered by drivers who participated in the strike. The previous day, the CU Franchisee Council sent a certified letter to the Cargo Solidarity, demanding 14 billion won in compensation for property and psychological damages caused by the blockade of logistics centers and production factories.

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