Vice Chairman Park Geun-hee "Sincere Condolences to the Bereaved Families"
Comprehensive Measures Announced to Protect Delivery Workers and Couriers
4,000 Sorting Staff Deployed, 10 Billion Won Fund Established
Park Geun-hee, CEO of CJ Logistics, is issuing an apology statement on the afternoon of the 22nd at the Taepyeong-ro Building in Jung-gu, Seoul, regarding the death of a delivery worker. Photo by Kang Jin-hyung aymsdream@
[Asia Economy Reporter Dongwoo Lee] CJ Logistics will gradually deploy 4,000 additional personnel starting next month to assist with parcel sorting and will mandate industrial accident insurance enrollment for delivery drivers. Additionally, by expanding automation facilities to reduce work intensity, the company plans to establish a mutual cooperation fund to enhance the welfare of delivery drivers.
On the afternoon of the 22nd, Park Geun-hee, Vice Chairman and CEO of CJ Logistics, held a press conference at the company’s headquarters in Jung-gu, Seoul, where he issued a public apology regarding the issue of delivery drivers’ overwork-related deaths.
Vice Chairman Park said, “I offer my condolences to the delivery drivers who recently passed away due to the hardships of delivery work and sincerely comfort their bereaved families,” adding, “All of us in CJ Logistics’ management, including myself, are taking the current situation very seriously and are fully committed to implementing measures to prevent recurrence,” bowing his head.
Gradual Deployment of 4,000 Parcel Sorting Support Personnel Starting Next Month
CJ Logistics has announced comprehensive measures to protect delivery workers. First, 4,000 sorting support personnel will be gradually deployed starting next month to assist delivery drivers with parcel handling tasks. Currently, the delivery sites are equipped with automated sorting equipment called wheel sorters, and adding sorting support personnel will significantly reduce delivery drivers’ working hours.
The total number of personnel includes about 1,000 already working on-site, bringing the total to 4,000. The additional cost is expected to be around 50 billion KRW annually. Specific details such as hiring additional personnel will be discussed with distribution centers. The company plans to ensure that this will not affect the per-delivery commission fees for delivery drivers.
Delivery drivers relieved from sorting duties by the support personnel will be able to utilize a ‘flexible start time system’ that allows them to freely adjust their morning start times. Although this varies by region, the company expects that allowing start times between 7 a.m. and 12 p.m. will significantly reduce overall working hours.
Furthermore, CJ Logistics will commission a professional organization to calculate the appropriate daily delivery volume for a healthy adult and will adjust workloads to prevent delivery drivers from exceeding this amount. They are also considering introducing an ‘excess volume sharing system,’ where teams of 3 to 4 delivery drivers share excess parcels to prevent individual drivers from being overburdened. Additionally, misclassification issues with the wheel sorter will be minimized through technological development to avoid placing extra workload on delivery drivers.
Mandatory Industrial Accident Insurance Enrollment for Delivery Drivers
Proactive industrial accident prevention measures will also be implemented. By the end of this year, a survey on industrial accident insurance enrollment will be conducted across all distribution centers, and by the first half of next year, all delivery drivers will be enrolled. Afterward, the status of exemption applications from industrial accident insurance coverage will be regularly monitored. To this end, the policy of recommending 100% industrial accident insurance enrollment will be strengthened for new distribution centers at contract signing and for existing centers at contract renewal.
The health checkup cycle for all delivery drivers will be shortened from two years to one year starting next year, and cardiovascular examination items will be added. CJ Logistics will cover all related costs annually.
A systematic health management plan will be established through consulting with external experts. A focused management system will be introduced for delivery drivers with abnormal findings during health checkups, and in cooperation with the Worker Health Management Center, three annual counseling visits will be conducted. If a driver is classified as high-risk, the company plans to strongly request exclusion from delivery duties or reduction of workload until health is restored.
Park Geun-hee, CEO of CJ Logistics, is bowing her head in apology on the afternoon of the 22nd at the Taepyeong-ro Building in Jung-gu, Seoul, regarding the death of a delivery worker. Photo by Kang Jin-hyung aymsdream@
Focus on Reducing Work Intensity... Structural Improvements
Structural improvements to reduce work intensity will also be accelerated. Following the wheel sorter automated sorting device, a small parcel dedicated sorting machine (MP: Multi Point) will be additionally installed by 2022 to enhance on-site automation levels.
Until 2017, parcel acceptance work at delivery sites relied on manual labor. Delivery drivers had to visually check and sort shipping labels on parcels rapidly moving on conveyor belts until unloading was complete, which caused high fatigue levels among drivers.
CJ Logistics was the first in the industry to install wheel sorter automated sorting devices at 181 sub-terminals nationwide, currently automating 95% of total volume. Since the end of 2019, in addition to wheel sorters, small parcel dedicated sorting machines have been installed at 35 sub-terminals, with plans to expand to 100 locations by 2022.
Since small parcel shipments account for 90% of the company’s handled volume, installing MPs is expected to significantly reduce overall working time. CJ Logistics plans to continue technological development and investment to enhance on-site automation.
Establishment of a 10 Billion KRW Mutual Cooperation Fund by 2022
CJ Logistics will establish a 100 billion KRW mutual cooperation fund by 2022. This fund will be used for welfare activities such as emergency livelihood support and improving job satisfaction, separate from existing support for delivery drivers’ children’s tuition and condolence payments.
In 2019, CJ Logistics formed the Delivery Mutual Cooperation Committee, consisting of five stakeholders in the delivery industry: delivery drivers, trunk carriers, subcontractors, distribution centers, and the company itself, to carry out various activities. The committee plans to use part of the mutual cooperation fund to promote communication among delivery workers, boost pride, and conduct social contribution activities.
Jung Tae-young, Head of CJ Logistics’ Delivery Division, stated, “We will build a working environment that allows delivery drivers and workers to work healthily by reflecting the on-site situation as much as possible.”
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