|Paris Baguette Settles Baker Dispute||등록일2018-01-11||조회415|
Baguette Settles Baker Dispute
Subsidiary will be 51% owned by HQ
- Average pay rise at 16.5%; Benefits to improve on par with HQ level
- Number of days-off to increase to 8,
effectively reducing working hours and bettering working conditions
The agreement will be signed at 5pm
on the day in the CCMM building in Seoul by representatives from the Euljiro
Committee of the ruling Democratic Party of Korea, the Korean Chemical &
Textile Workers’ Federation, the Justice Party, People’s Solidarity for
Participatory Democracy, Paris Baguette headquarters, a council of Paris
Baguette franchisees, the Federation of Korea Trade Union’s public sector
workers and Korean Contingent Workers’ Center.
The agreement has ended three months of controversies over how Paris Baguette will employ outsourced bakers directly. The issue was resolved with a social consensus that they will be employed by a subsidiary of Paris Baguette.
In September, last year, the Ministry of
Employment and Labor ordered Paris Baguette franchise headquarters to hire
contracted bakers directly, causing controversies across a number of fields
including industries, labor groups, academia and judicial circles over whether
their real employer should be the franchise headquarters or franchisees.
The company started to negotiate with the two union groups while the Euljiro Committee, the Justice Party and People’s Solidarity for Participatory Democracy mediated in the talks. Eventually, the negotiation was concluded as the headquarters accepted a proposal by the union groups that one of its subsidiaries should hire them.
Under the agreement, Paris Croissant Co. Ltd., which is the headquarters of Paris Baguette franchise, will possess 51 percent or more of equity in the subsidiary which will hire contracted bakers. In a move to secure a responsible management, the headquarters will appoint one of its board members as chief executive of the subsidiary.
The headquarters accepted a demand by the two union groups that it should rename ‘Happy Partners’, an existing subsidiary founded to encourage mutual growth, which will hire contracted bakers. Its contractors which have dispatched bakers to franchisees will be excluded from holding shares of the new subsidiary and being its board members.
Bakers in a new subsidiary will receive 16.4 percent higher salaries on average and the same level of company benefits as those for existing employees of the franchise headquarters. The number of their days-off will increase from six to eight. This has an effect of reducing working hours. Overall, their working conditions will be a lot better.
“I feel a deep sense of responsibility as chief of the franchise headquarters for causing so much anxiety to bakers, franchised stores and contractors,” Paris Croissant CEO Kwon In-tae said. “As we struck an important social deal for all the difficulties, we will try hard to facilitate mutual understanding and growth with labor and create many decent jobs.”
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