Daeri Unjeon Nojo and Kakao Nojo Urge Withdrawal of Kakao Mobility Sale... Announce Collective Action

The National Substitute Driver Labor Union and the Kakao Labor Union "Crew Union" (Kakao Branch of the National Chemical, Textile, and Food Industry Labor Union) held a press conference on the 10th at Sangyeonjae in Jung-gu, Seoul, repeatedly demanding that Kakao management withdraw its plan to sell Kakao Mobility.
[Image source=Yonhap News]

[Asia Economy Reporter Seungjin Lee] On the 10th, the Kakao labor union 'Crew Union' and the National Substitute Driver Labor Union held a press conference at Sangyeonjae in Jung-gu, Seoul, repeatedly demanding that Kakao management withdraw its plan to sell Kakao Mobility.

The two unions stated, "Kakao Mobility is being transformed into a playground for speculative capital seeking profits," and argued that "Kakao Mobility's 'growth plan for social coexistence' must include the improvement of platform workers' rights and the enhancement of convenience for citizens."

They further demanded the abolition of the paid 'Pro Service' (which allows KakaoT substitute drivers to quickly check and accept calls first) and urged a proactive approach to reaching a collective bargaining agreement.

Currently, Kakao Mobility is conducting collective bargaining with the National Substitute Driver Labor Union. On the 4th and 5th, the union held the 12th round of negotiations demanding the abolition of the KakaoT substitute drivers' Pro Service within the year.

Additionally, the unions expressed concerns, saying, "Although Kakao Mobility is working on establishing a 'consultative body for the sustainable growth of mobility and society' and preparing a win-win plan, there are doubts about its sincerity, and it raises suspicions that this is merely a stalling tactic to avoid social criticism ahead of the National Assembly audit."

They also stated, "Despite Kakao's announcement to postpone the sale, MBK has involved the National Pension Service in acquiring Kakao Mobility," and explained the purpose of the press conference by saying, "We cannot help but be outraged that, despite Kakao's postponement announcement, the sale is being pushed forward behind the scenes and that national assets are being used to turn a national platform into a speculative arena."

They explained, "After confirming reports about MBK's acquisition of Kakao Mobility and the National Pension Service's investment decision, we requested confirmation from the National Pension Service, but they refused to confirm investment details and did not deny the reports, leading us to consider it a fait accompli."

Earlier, Kakao announced that it is considering selling part of its stake in its subsidiary Kakao Mobility to MBK Partners, changing from the largest shareholder to the second-largest shareholder. Currently, Kakao holds 57.55% of Kakao Mobility's shares.

The substitute driver union plans to start collective action in front of the Kakao building near Pangyo Station from the 16th and deliver a letter of demands from platform workers to the Minister of Employment and Labor in front of the presidential office in Yongsan on the 17th.

On the 31st, a 'Platform Workers Rally' is scheduled to be held with participation from the National Taxi Labor Union Federation, Rider Union, Webtoon Artists Union, and others.

Meanwhile, this press conference was the first held after Kakao Mobility's management requested Kakao headquarters to postpone the sale on the 25th of last month. At that time, Kakao Mobility proposed to Kakao to form a consultative body to prepare a plan for coexistence with society.

On this day, Seungwook Seo, head of the Crew Union branch, said, "Discussions of the consultative body began on August 1, and since the results are not yet finalized, it is difficult to disclose specific details at this time," adding, "We hope that a plan will emerge that allows Kakao Mobility to achieve sustainable growth together with society, as the company intended."

According to Seo, the consultative body includes Kakao Mobility CEO Ryu Geung-seon, 4 to 5 executives, and employees responsible for various Kakao Mobility services. In the early stages of the consultative body, there was sharing of Kakao Mobility's service status and the company's financial situation, and recently, discussions on win-win plans have begun in earnest.

However, the consultative body schedule is known to end on the 12th, and whether the schedule will be extended is expected to be decided this week.