BGF Logistics and Cargo Union Reach Historic Agreement: What It Means for Transport Fees and Labor Rights

Park Seong-ha | 2026.05.01

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▲ The Freight Union and BGF Logistics reached a collective agreement, including higher transport fees and measures to restore honor, to end their dispute. (Photo provided by the Freight Union)

[mdtoday = Reporter Park Seong-ha] The Freight Union and BGF Logistics have reached a collective agreement that includes higher transport fees and measures to restore the honor of a union member who died in an accident, effectively ending their dispute.

According to the Jinju branch of the Ministry of Employment and Labor, the Freight Union and BGF Logistics signed the collective agreement on the 30th. The accord focuses on improving transport conditions and restoring the reputation of the union member who lost their life in the incident.

The agreement followed a one-day postponement of the signing ceremony caused by disagreements over specific wording related to honor-restoration measures. The parties resolved that issue, finalized the deal, and brought the prolonged strike to an end.

The pact includes institutional changes to labor-management relations. The company agreed to recognize the Freight Union as a bargaining representative and to hold collective bargaining sessions on a regular basis. It also withdrew penalties imposed on strike participants, reaffirming basic labor rights.

Improvements to working conditions were also spelled out. Freight rates will increase by 7% from current levels, and truck drivers employed under special-contract arrangements will receive one paid day off per quarter. The agreement also establishes an upper limit on replacement-vehicle costs to strengthen drivers’ right to rest.

All claims for damages and injunctions related to logistical disruptions during the strike have been withdrawn, and the agreement contains a release clause that bars civil and criminal liability for those matters.

The company acknowledged responsibility for the death of the union member and offered an apology to the bereaved family. The Freight Union accepted the apology but says it will continue a separate effort to determine accountability for public authorities’ involvement.

The deal will lift the blockade at the Jinju logistics center and move the on-site conflict that began on the 20th toward final resolution. The parties reached the agreement after five rounds of negotiations.

The Freight Union will hold the deceased’s funeral as a “labor and civic society” memorial and plans to continue related actions going forward.

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