"Labor-Management Conflict in Courier Industry Peaks... Expecting Benefits for CJ Logistics"

[Asia Economy Reporter Park Jihwan] An analysis has emerged suggesting that the labor union strikes that have continued since last year in the courier industry could present an opportunity. It is especially explained that CJ Logistics (CJ Daehan Tongun) will benefit the most.

On the 20th, Choi Kiwon, a researcher at Korea Investment & Securities, said, "The courier industry has passed the final hurdle for social agreement with the withdrawal of this strike," adding, "Although Korea Post Courier, which has a high union ratio, is experiencing last-minute difficulties, the discussion patterns are not significantly different from those of private operators."

Earlier, the courier union reached a tentative agreement with private courier operators on the 16th and decided to withdraw the strike. The main issues during the strike were the timing of excluding courier workers from sorting tasks and the compensation of fees for reduced working hours.

Researcher Choi emphasized, "If the dispute prolongs, the Korea Post Service Headquarters might completely withdraw from the courier business, which would actually be favorable for other courier companies," and added, "It has become clear that both the union and the government agree that a price increase is inevitable to improve working conditions." Although it is difficult to say that the conflict has been completely resolved, concerns about courier profitability are limited because any additional cost inputs in the future will be accompanied by corresponding fare increases.

This year’s changes in the courier market are analyzed to be most advantageous to CJ Logistics. CJ Logistics has taken the lead in investing in improving working conditions, such as being the first in the industry to establish automation equipment at sub-terminals. This means that their cost burden this year is relatively low.

Researcher Choi explained, "CJ Logistics handles more than three times the volume compared to Hanjin and Lotte, but the number of sorting personnel promised to the union is about 4,000 for all three companies," adding, "Ultimately, as ESG-related investments increase in the future, competitors will face more urgent price increases."