Cargo Workers and CU Logistics Affiliate Reach Collective Agreement After 10-Day Blockade
Unionized cargo workers and BGF Logis, the logistics affiliate of convenience store chain CU, signed a collective agreement on April 30, 2026, ending a 10-day blockade of key logistics centers. The deal raises freight rates by 7 percent and improves working conditions, following a fatal accident that escalated tensions.
Unionized cargo workers and the logistics affiliate of convenience store chain CU signed a collective agreement on April 30, 2026, ending a 10-day blockade of the chain's key logistics centers, Yonhap reported. Cargo Truckers Solidarity, an affiliate of the Korean Confederation of Trade Unions, and BGF Logis sealed the agreement in a signing ceremony at the labor ministry's branch office in Jinju, a southeastern city 290 kilometers from Seoul.
The deal raises freight rates and improves working conditions for cargo workers.
Kim Dong-kuk, leader of Cargo Truckers Solidarity, and Lee Min-jae, CEO of BGF Logis, shook hands after signing the collective agreement at the labor ministry's branch in Jinju on April 30, 2026. The agreement increases transportation fees by 7 percent and guarantees paid leave once a quarter to truck drivers.
The conflict escalated after a fatal accident on April 20, 2026, when a union member in his 50s was killed by a non-union truck in front of the CU logistics center in Jinju.
The signing ceremony was originally scheduled for April 29, 2026, but was postponed by one day because both parties failed to agree on measures to restore the honor of the deceased union member. Cargo Truckers Solidarity stated that it views management's recognition of their bargaining autonomy and union status as the agreement's greatest achievement.
The two sides agreed to guarantee the basic labor rights of cargo workers by regularizing collective bargaining and withdrawing disadvantages resulting from strikes.
The agreement followed the recent enactment of the yellow envelope act, which made prime contractors more accountable for subcontracted workers and restricted businesses from claiming damages from striking workers. Higher-level logistics firms previously avoided direct talks with truck owners due to a multilayered outsourcing structure, according to details in the Yonhap report.
Key Facts
Story Timeline
5 events- 2026-04-30
Unionized cargo workers and BGF Logis signed a collective agreement, ending the 10-day blockade.
1 sourceYonhap - 2026-04-30
Kim Dong-kuk and Lee Min-jae shook hands after signing at the labor ministry's branch in Jinju.
1 sourceYonhap - 2026-04-29
Signing ceremony originally scheduled but postponed due to disagreement on honoring the deceased union member.
1 sourceYonhap - 2026-04-20
Fatal accident occurred where a union member was killed by a non-union truck in front of the CU logistics center in Jinju.
1 sourceYonhap - Recent (prior to 2026-04-30)
Enactment of the yellow envelope act, making prime contractors more accountable and restricting damage claims from strikes.
1 sourceYonhap
Potential Impact
- 01
Resumption of normal operations at CU logistics centers, reducing supply chain disruptions.
- 02
Increased transportation fees by 7 percent, affecting costs for CU and possibly consumer prices.
- 03
Strengthened union bargaining power following recognition of autonomy and status.
- 04
Improved working conditions for cargo workers, potentially setting precedent for other logistics firms.
Transparency Panel
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