Elegant Youth, Sign Collective Agreement with Minnocho Service Federation

First Collective Agreement Reached Between Platform Companies and Workers in Korea
Rider Income Increases with Elimination of Dispatch Brokerage Fees, Health Checkup and Rest Support Payments Also Provided

On the 22nd, at the collective bargaining signing ceremony between Woowa Brothers and the Korean Confederation of Trade Unions Service General Labor Union held in Songpa-gu, Seoul, Kim Byung-woo, CEO of Woowa Brothers (right), and Lee Seon-gyu, chairman of the Korean Confederation of Trade Unions Service General Labor Union, took a commemorative photo after signing the country's first collective agreement between a platform company and its workers.

[Asia Economy Reporter Kim Cheol-hyun] Collective bargaining between platform companies and platform workers has been successfully concluded for the first time in South Korea. Woowa Brothers Corp. (CEO Kim Byung-woo), which operates Baemin Riders, the premium delivery service of Baedal Minjok (Baemin), announced on the 22nd that it had signed a collective agreement with the Service General Labor Union of the Korean Confederation of Trade Unions (KCTU) Service Federation (Chairman Lee Seon-gyu). This is the first case where platform companies and platform workers have autonomously conducted labor-management negotiations and reached a collective agreement amid the rising social issue of platform labor, drawing significant attention.

Both parties provisionally agreed on the final collective agreement content on the 20th, and after conducting a two-day vote among union members, the agreement was finally approved with a turnout rate of 77.1% and a approval rate of 97.6%. The collective agreement includes comprehensive measures covering the entire delivery industry, such as ▲sustainable growth of the company ▲the right of union members to work safely ▲improvement of rider treatment through enhanced welfare ▲and improvement of the social perception of riders through joint labor-management efforts.

According to the agreement, Woowa Brothers Corp. (hereinafter referred to as the company) recognized the Service General Labor Union of the KCTU Service Federation (hereinafter referred to as the union) as a labor organization negotiating on delivery environment, delivery conditions, union member safety, and rider human rights protection. Both parties agreed to exempt riders from the dispatch brokerage fee (200 to 300 KRW per order) that riders had to bear when delivery volumes were intermediated. Although the dispatch brokerage fee is a customary practice in the delivery agency industry, this agreement is expected to increase the income of all riders contracted with Baemin Riders by exempting this fee.

Rider welfare has been significantly expanded. In this agreement, the company will provide health checkup costs and clothing expenses to riders, and offer rest support payments to riders who work under long-term contracts. Rider safety measures have also been strengthened. Both parties agreed to mandate regular rider safety training and allow the company to suspend delivery services during severe bad weather, thereby ensuring the safest possible delivery environment for riders.

Additionally, to improve the social perception of riders and enhance service quality, the company and the union specifically outlined joint efforts such as holding campaigns and forums, and establishing social network service (SNS) channels for smooth communication. Lee Seon-gyu, Chairman of the KCTU Service General Labor Union, stated, "This agreement is significant because labor and management agreed on provisions for riders to be socially recognized as a legitimate occupation," adding, "We will continue to strive for rider safety and social perception improvement."

Kim Byung-woo, CEO of Woowa Brothers Corp., said, "We hope this collective bargaining, undertaken with responsibility as an industry-leading company, will serve as a catalyst for positive influence across the domestic platform industry," and added, "We will continue to carefully support riders as partners in the delivery industry."

Meanwhile, this collective agreement was finalized after more than 20 meetings over six months to narrow differences between labor and management. The Baemin Riders branch under the KCTU Service Federation was confirmed as the sole bargaining union through a unification procedure in February. Although Woowa Brothers Corp. has no legal obligation to respond to collective bargaining demands from the rider union, whose members are independent contractors, it has participated sincerely in negotiations from the perspective that platform labor must take root as quality jobs in South Korea. Woowa Brothers’ parent company, Woowa Brothers Corp., has also participated in social dialogue to ensure platform labor is stably established domestically. The 'Social Dialogue Forum for Alternatives to Platform Labor,' which includes Woowa Brothers, government ministries such as the Ministry of Employment and Labor, labor representatives, and academic experts, recently signed a social agreement to secure a stable working environment for platform workers.