Kakao Mobility Reaches Agreement on 'Proxy Union Collective Bargaining' as First Platform

20 Negotiations Over a Year
Agreement on Gradual Abolition of Pro Service
Establishment of Practical Measures to Improve Working Conditions

[Asia Economy Reporter Seungjin Lee] Kakao Mobility announced on the 6th that it has reached a tentative agreement on collective bargaining with the National Daeri Driver Labor Union. This marks the first agreement between a related platform company and a driver union nationwide, resulting from more than 20 main negotiation sessions held over the past year since October last year.

Since entering collective bargaining with the Daeri Union in October last year, Kakao Mobility has engaged in sincere and cooperative dialogue with the union, becoming the first in the platform industry to post a ‘Notice of Bargaining Demand’ within its app. Through this agreement, both parties have committed to improving the daeri driving environment while working together to enhance public perception of the daeri driving industry and promote customer safety.

The pro-service system, a major discussion point with the Daeri Union, was agreed to be phased out. Since the system currently expands earning opportunities for existing pro-service users and affects the small-scale daeri driving industry, discussions will continue to minimize harm and concretize improvement measures collaboratively.

Efforts will also be made to improve the treatment of daeri drivers. Kakao Mobility agreed to establish a ‘Grievance Committee’ to listen to and resolve disputes and various difficulties arising during drivers’ operations, as well as appoint a ‘Daeri Driving Industry Safety Keeper’ to protect drivers’ health and safety. This includes investigating causes of work-related risks and preparing improvement measures, with the possibility of appointing external experts if necessary.

Over the past year, while negotiating with the Daeri Union, Kakao Mobility has also supported the safe working environment of daeri drivers by providing free health checkups and counseling services to about 15,000 drivers in July and introducing nighttime health checkup visits to rest areas.

Kakao Mobility expects that the collective bargaining agreement with the Daeri Union will lead to overall industry development, including improved service quality and better working conditions for providers. This is anticipated to create a virtuous cycle where more users utilize the service and providers actively participate in the market, fostering mutual growth in the entire daeri driving market.

Kim Juhwan, Chairman of the National Daeri Driver Labor Union, evaluated, “The collective bargaining, achieved through a difficult process, has reached a tentative agreement beyond the challenges of the first negotiation. Although there are regrettable and insufficient aspects, hope has been cultivated for on-site daeri drivers.” He added, “Based on this, the union will do its utmost to improve the labor conditions and lives of daeri drivers, and hopes that labor and management will continue to build trust from these negotiations to jointly work for the rights of on-site daeri drivers and the safety of citizens.”

Ahn Kyujin, Vice President and Head of Business Division at Kakao Mobility, said, “Through this tentative collective bargaining agreement with the Daeri Union, drivers’ working conditions will improve, leading to enhanced service quality for convenient mobility and a virtuous cycle that supports safer travel for more users. We will continue to listen carefully to industry voices and steadily discuss various measures to revitalize the daeri driving market and promote mutual growth.”