[Delivery Union Above the Law] When Will My Package Arrive? Consumers Frustrated... Daily 1 Billion Won Loss, Companies in Distress

CJ Logistics Suffers Biggest Damage... Consumer Deliveries Delayed Causing Inconvenience
'Prevent Overwork Deaths of Delivery Workers'... Purpose Lost After Illegal Occupation

On the 17th, as the delivery workers' union continued its sit-in protest occupying the CJ Logistics headquarters, a reporter attempted to cover the inside of the CJ Logistics headquarters in Jung-gu, Seoul, but was blocked by a hand covering the camera. Photo by Mun Ho-nam munonam@

[Asia Economy Reporters Choi Dae-yeol and Yoo Hyun-seok] Kim Seok-hyung (52, pseudonym), who operates a CJ Logistics agency in Gyeonggi Province, has recently been unable to sleep at night. Due to the strike by the Korean Confederation of Trade Unions (KCTU) Nationwide Courier Workers' Union (Courier Union), the delivery volume during the peak season from the end of the year to Lunar New Year has decreased, causing his profits to shrink by more than 30%. While profits are declining, the burden of fixed costs is increasing. Expenses such as office operation costs, taxes, and labor costs are considerable. Kim said, "The biggest burden is labor costs," adding, "We hired additional sorting staff to reduce the workload of delivery drivers, but due to the reduced volume, it is difficult to cover labor costs."

The prolonged strike and illegal occupation by the Courier Union are causing increasing damage and confusion throughout society. The damage is spreading comprehensively, affecting not only CJ Logistics, whose agencies and facilities are the targets of illegal occupation, but also consumers and small to medium-sized shippers. Furthermore, the conflict has escalated into a labor-labor dispute. The government, which should mediate, has stepped back, stating that it is a matter for labor and management to resolve, thus remaining passive. The political sphere is also watching cautiously amid the presidential election season, fearing loss of voter support, leaving the resolution of the courier strike tangled and complicated. The union, without considering an exit strategy, continues a standoff on the brink, increasing the likelihood of a prolonged strike.

◇Head Office Customer Loss... Unable to Accurately Estimate Damage= The biggest victim of the prolonged courier union strike is CJ Logistics. Especially after the union's occupation of the head office on the 10th, the damage has increased, but it is difficult to estimate the exact amount. A CJ Logistics official said, "We are focusing on deliveries to cover gaps caused by the strike, so the exact damage scale has not been calculated," adding, "It is roughly estimated that losses amount to about 1 billion KRW per day."

What is particularly concerning is the loss of customers. When customers switch courier companies, it directly results in losses for the head office, agencies, and delivery drivers. In fact, some shopping malls have announced that they will change their courier company from CJ Logistics to others.

Consumers continue to complain about delivery delays. Currently, the CJ Logistics union is estimated to have about 2,500 members. In areas where they are concentrated, such as Bundang-gu and Sujeong-gu in Seongnam City, Gyeonggi Province, as well as Gwangju, Changwon, Gyeongju, Pohang, and Ulsan, deliveries are delayed by up to one to two weeks.

The confrontation between union and non-union members is also intensifying. On the 13th, the National Non-Union Courier Drivers Association held a rally, shouting slogans such as "Non-union drivers are dying due to a baseless strike" and "Union holding customers' goods hostage, do not take away the right and freedom to work," demanding the withdrawal of the strike. Following the illegal occupation and worsening public opinion, there are signs of internal disintegration among union members participating in the strike. The number of participants, which was 1,650, has decreased to 1,450 as of that day. An industry insider said, "As volume decreases, income also drops, and recently, more non-union courier drivers are working part-time jobs," adding, "We are truly living hand-to-mouth and are at risk of losing our jobs."

◇The original purpose of "preventing courier driver overwork" has disappeared= The problem is that it is not easy to find a channel to resolve the courier strike, which has lasted over two months. The strike and illegal occupation of the head office erupted because the union and company could not narrow their differences over a social agreement designed to prevent excessive labor by courier workers. After the illegal occupation, the union held rallies in front of the CJ Group chairman's residence and delivered demands, shifting the conflict away from the original issue of solving courier driver overwork. From the 21st, a general strike involving union members from other courier companies such as Lotte and Hanjin is expected.

Industry insiders believe the extreme conflict stems from the government's recognition of the courier union in November 2017. Although courier union members are individual business owners, the Ministry of Employment and Labor recognized them as workers under the Trade Union Act rather than the Labor Standards Act, allowing the establishment of the union. At that time, since courier services had become deeply embedded in daily life, there were many predictions that union influence would be strong and that collective actions would have a significant impact. The current law is also inadequate. The Trade Union Act does not have negotiation procedures or strike regulations for multiple employers or special employment types like courier drivers. Earlier, in June last year, the Central Labor Relations Commission recognized CJ Logistics as a joint employer along with agency owners, but the company filed an administrative lawsuit, and the case remains unresolved.

There are also criticisms that CJ Logistics has become a concentrated "target" after being singled out by the union. Excluding Saturday work is known as a major issue. Initially, CJ Logistics planned to exclude Saturday work as the union requested and resolve the issue by hiring additional staff. However, the union opposed this, making CJ Logistics the target of attacks. Another industry insider explained, "If Saturday work is removed, their income decreases, so the strike against CJ Logistics is believed to be due to resentment over this."