News

Supermarket workers in South Korea are anticipating a more secure future after Tesco-owned retail chain Homeplus signed its first collective bargaining agreement since opening fourteen years ago.

The Homeplus Labour Union secured the landmark deal after marathon 15-hour negotiations through the night. Critically, the agreement includes a deal to end the company’s controversial 0.5 hour contract system for temporary staff, which pays workers in 10 minute blocks of time.

The deal follows a series of worker actions designed to ramp up the pressure on the company to scrap 0.5 hour contracts and to sign a bargaining agreement. Many stores saw partial strikes from January 1 to January 5 where workers protested these bad practices with rallies and demonstrations.

Both sides agreed on a plan to reform 0.5 hour contracts. Changes will be introduced starting during the first quarter of 2014 and the practice will be finally phased out by March 31st 2016. Contracts for new hires will contain no such clause. Allowances, bonus and wage will be discussed at the negotiation table of 2014.

The Homeplus Labour Union thanked UNI-APRO and UNI Commerce for its support. Jay Choi UNI-APRO Korea Desk Coordinator said, “We are very happy that the first CBA struggle turned out in victory just before a potentially big fire.
 
“After the final vote by union members Homeplus union and KPSU will speed up our organizing drive.”

The agreement contains 123 articles and 5 supplementary provisions, all of which have been temporarily agreed. The final approval will go to the vote at the next general meeting.

The company agreed to provide a union, recognition of full-time union officers and to guarantee union bulletins in the stores where unions exist.

Alke Boessiger, Head of UNI Commerce said, “This is undoubtedly a historical victory and we hope it will pave the way for similar deals throughout South Korea. We send our sincere congratulations to Homeplus workers and their union, which has stood up for what is right. We also congratulate the Homeplus management for their engagement with the union.”