CU Franchisee Council Claims 14 Billion Won from Cargo Solidarity Union, Demands Compensation for Strike Damages

The CU Franchisee Council, composed of franchisees of CU convenience stores operated by BGF Retail, announced on May 6 that it had sent a certified letter to the Cargo Solidarity Union under the Korean Confederation of Trade Unions, claiming damages of 14 billion won for losses incurred due to disruptions in product supply caused by last month's strike.

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

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The CU Franchisee Council explained that the claim amount was calculated by combining 10.28 billion won in property damages caused by the blockade of logistics centers and production plants by the Cargo Solidarity Union during the strike, and an additional 3.76 billion won in compensation for emotional distress suffered by the owners of approximately 18,800 stores, at 200,000 won per store.

The certified letter demands that the Cargo Solidarity Union provide a public apology and a commitment to prevent recurrence by May 15, as well as submit an implementation plan regarding compensation for damages claimed by the franchisees.

The council stated that, if these demands are not accepted, it will file a lawsuit for damages in the claimed amount, and seek criminal responsibility for various illegal acts committed by the Cargo Solidarity Union during the strike. The scope of potential criminal charges includes interference with business, intimidation, defamation, special destruction of property, and violations of the Public Property Act.

Choi Jongyeol, President of the CU Franchisee Council, stated, "As the damages suffered by franchisees have been specifically calculated, we have sent a certified letter in preparation for a lawsuit for damages," adding, "The claimed amount is a conservative, provisional calculation based only on clearly provable losses, and we expect it to increase further in the future."

The council also sent a certified letter to BGF Logis, the logistics subsidiary of BGF Retail, demanding that substitute delivery drivers be assigned if franchisees refuse deliveries from Cargo Solidarity Union-affiliated drivers who committed illegal acts. The council warned that, if substitute drivers are not provided, it may consider collective refusal to accept deliveries and even terminate franchise agreements.

In fact, on this day, it was reported that many stores refused to accept products delivered by Cargo Solidarity Union-affiliated drivers on their first delivery run after returning to work. Previously, on April 27, the Franchisee Council had issued a statement declaring that stores would no longer accept products transported by drivers who participated in the delivery refusal.

Ha Dongseon, Secretary General of the CU Franchisee Council, said, "Franchisees are experiencing severe trauma because their livelihoods and those of their families have been held hostage for the interests of others."

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