BGF Retail to Pay CU Store Owners Aid After Logistics Strike, Dispute With Truckers Persists

BGF Retail, the operator of CU convenience stores, began compensating franchise owners on Wednesday after a labor agreement between its distribution and logistics affiliate, BGF Logis, and the Cargo Truckers Union ended a disruption in CU deliveries. The company’s move comes as CU franchisees continue to press the union for damages, signaling the dispute is not over.

According to the retail industry, CU store owners on Wednesday could confirm the headquarters’ support amounts on their settlement statements under an item labeled “logistics supply support funds and consolation payments.” The strike ended after BGF Logis signed a collective agreement with the union on April 30, and the support plan was finalized about a week later. Some owners said the amounts were larger than expected even when their losses were limited, industry officials said.

BGF Retail issued a notice to franchisees and employees detailing the plan, which was finalized late Tuesday. It consists of store support funds and separate consolation payments, with individual deposits scheduled for May 8.

The store support funds include compensation for stockouts of chilled and frozen products and reimbursement for discarded ready-to-eat meals. For the period from April 5 to 30, BGF Retail will cover the full amount of store gross profit that would have been earned from out-of-stock refrigerated and frozen items, assuming normal sales. It will also reimburse the full value of ready-meal disposals incurred during the same period.

The consolation payments are additional support separate from direct loss compensation. Regional payments will be set on a sliding scale, up to 300,000 won, based on the level of supply instability. Store-by-store payments, considering stockouts and delivery delays, will be up to 700,000 won per store. BGF Retail did not disclose the total amount, but the industry estimates it at around 10 billion won.

“As the franchisor, we put store stability first and prepared a plan that includes practical compensation as well as consolation payments,” a BGF Retail official said. “We will continue working so we can grow together based on partnership.”

Even as deliveries return to normal, friction between franchisees and the Cargo Truckers Union continues. The CU Franchisee Council on May 4 sent the union a certified letter demanding 14 billion won in damages, steps to prevent a recurrence and a public apology, seeking to hold the union responsible for losses during the strike.

The council said it will file a civil damages lawsuit if its demands are not accepted by May 15, and it will also seek criminal accountability for alleged illegal acts during the strike. Another CU franchisee group, the CU Franchisee Federation, has also recently sent the union a certified letter demanding a resolution and compensation, according to industry officials.