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Paris Baguette Settles Baker Dispute 등록일2018-01-11 조회713

Paris Baguette Settles Baker Dispute

- Franchise HQ accepts proposal for subsidiary to hire bakers;

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
- 5,300 jobs to be created; Additional 500 to be recruited as substitutes for off-duty bakers

(2018-01-11) Paris Baguette’s franchise headquarters and the country’s two umbrella union groups agreed on January 11 that a subsidiary of the franchiser will hire contracted bakers who have been dispatched to Paris Baguette franchised bakeries nationwide.


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.

“We decided to accept the proposal from a broader view, because we thought it is our utmost priority to ensure job security of the bakers,” a Paris Baguette spokesperson said.


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.

As a consequence of the franchise headquarters directly hiring bakers who were contracted to work at franchised stores, about 5,300 decent jobs will be created. With the number of days-off increasing, the headquarters plan to hire additional 500 bakers who will substitute for off-duty bakers. This will produce job-sharing effect.

Also as the agreement was reached, the ministry is expected to cancel penalty it imposed on the franchise headquarters. Earlier, the ministry said it would not impose fine if bakers oppose being hired directly. Those bakers who sued the franchise headquarters to confirm their status as their employees will drop the suit immediately.


“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.”