[Courtesy of Paris Barguette]
South Korea's labor ministry turned down a demurrer by Paris Baguette, the country's largest bakery franchise chain with a nationwide network, over an order to provide full-time job to thousands of temporary workers sent by contractors to franchise stores.
The order was given last week after a government investigation of working conditions at 3,396 Paris Baguette franchise stores manned by 4,362 bakers and 1,016 cafe workers on outsourced service contracts. It was part of a campaign by President Moon Jae-in to eradicate unlawful business practices.
The Ministry of Labor and Employment accused Paris Baguette of breaching the law 1hat forbids a franchiser from training, supervising and managing contracted or outsourced workers.
They were sent by subcontractors that provides manpower to franchise chains, but the ministry found Paris Baguette had put them under virtual direct management, training them and assessing their work performance.
Backed by other franchise chains, Paris Baguette argued it was not involved in any wrongdoing because it followed a deep-rooted business practice. The related industry has expressed concern about increased labor costs. Many South Korean companies have adopted similar systems.
Vice minister Lee jung-ki, however, refused to budge, defending the order as legitimate, but he suggested Paris Baguette would be a grace period. He also stressed the order would not affect other franchise chains, calling for voluntary action.
"This is a very important issue, and we have concluded it through sufficient judicial review, considering the impact on other industries," Lee told reporters. "Through this case, I hope that businesses will correct a wrong practice voluntarily."
He said the government would not retract its order because Paris Baguette clearly violated the law. The ministry has also ordered contractors to provide 11 billion won in unpaid allowance.
reporter
Lim Chang-won
cwlim34@ajunews.com
