[Real Beat] Workers Refusing On-Site Attendance... "Delivery and Transportation Jobs Can Also Be Done Remotely" [Office Shift] ⑤

Factory and restaurant workers face livelihood and safety issues
Starbucks founder says "Online work is a 'privilege'"

Editor's Note[Jjinbit] is short for 'Jung Hyunjin's Business Trend' and 'Real Business Trend,' a segment that showcases trends in the changing nature of work. The segment within Jjinbit called 'Office Shift' closely examines changes in offices triggered by the COVID-19 pandemic and aims to lay the groundwork for finding answers to new work styles through experiments we have experienced together. It will be delivered to you every Saturday and Sunday morning. After 40 installments, it will also be available as a book.

[Asia Economy Reporter Jung Hyunjin] Factory workers in China staged a 'mass escape.' Employees collectively ran out onto the highway. This happened last October at Foxconn's Zhengzhou factory in China, the world's largest iPhone production base. According to Bloomberg News, the factory employs up to 300,000 workers. As the Chinese government enforced a strict 'Zero COVID' policy and frequently locked down cities, Foxconn prevented production workers from leaving the factory to keep operations running. Dormitories were set up inside the factory fence to accommodate living and dining, maintaining strict control. Workers trapped inside the factory could not go outside even as infections surged internally. Feeling threatened in terms of safety and facing food shortages, they judged that living a humane life was impossible and collectively jumped over the factory gates to survive.

[Image source=AP Yonhap News]

This incident highlights a dilemma posed by COVID-19. Not all workers could participate in the work-from-home experiment during the pandemic. Although COVID-19 spread worldwide in January 2020, some workers had to report to their workplaces. Unlike office workers who could work with just a laptop or computer, workers in factories, hospitals, and restaurants had to work on-site and face people directly, making commuting a matter of safety and livelihood. "Even if it's risky, we have no choice but to work to make a living," workers who risked infection during the height of the pandemic lamented. This is why work-from-home was seen as a privilege enjoyed only by some office workers.

◆ Did COVID-19 Fuel the Starbucks Union?

After COVID-19, a wave of union formation swept among Starbucks employees in the United States. When Starbucks founder Howard Schultz returned in May 2022 after five years, his first declared task was to quell these unionization demands. The unprecedented situation of the pandemic, where employees had to meet customers face-to-face, heightened safety concerns and gave momentum to union organizing efforts that had previously been minimal. On-site workers who could not work remotely began voicing complaints about their working conditions.

According to U.S. economic media such as Business Insider, Starbucks closed all its stores in the U.S. and Canada for two weeks starting March 2020, except for drive-thru locations, due to the COVID-19 pandemic. Stores with drive-thru were converted to drive-thru only, and those capable of delivery switched to delivery-only to minimize face-to-face contact between customers and employees. The company paid employees for 30 days regardless of whether they came to work.

[Image source=AP Yonhap News]

Two months later, in May of the same year, Starbucks reopened its stores. At that time, employees opposed returning to stores due to safety concerns amid a surge in COVID-19 cases.

Bloomberg reported in May last year that "many baristas became radicalized due to the company's COVID-19 policies," adding that "they said Starbucks prioritized cost-cutting over basic protective measures during the pandemic." This explained how on-site workers concerned about safety became a force supporting pro-union movements. Starbucks claimed it responded more progressively than other companies and that there were no issues, but employees felt differently.

CEO Schultz announced on January 11, three years into the COVID-19 crisis, that employees would return to the office three days a week. He said, "Employees working at Starbucks Support Center (SSC) and regional offices had the privilege of working online during the pandemic by converting their workspaces." Schultz emphasized that many Starbucks employees did not have such privileges and had to continue coming to stores, factories, and distribution centers daily, facing difficulties. He described this difference in work styles during COVID-19 within the same company as a privilege depending on the job.

◆ Some Work from Home, Some On-site: Calls for Addressing 'Inequality'

According to Boston Consulting Group (BCG), 70-80% of the global workforce are 'deskless' workers who work on-site rather than in offices. Their proportion is especially high in healthcare, manufacturing, logistics, food production, and retail. According to a report released by the Organisation for Economic Co-operation and Development (OECD) in September 2021, the industries with the highest rates of work-from-home during COVID-19 were IT, finance, and professional scientific and technical services. In contrast, healthcare, construction, hospitality, and restaurants had relatively low work-from-home rates.

Whether companies had suitable conditions for work-from-home also varied by company size. Small and medium-sized enterprises (SMEs) generally lacked the infrastructure for remote work compared to large companies, making it difficult to implement work-from-home early in the pandemic. A June 2020 survey by the Korea Federation of SMEs of over 300 SMEs nationwide found that 6 out of 10 respondents had never heard of smart work, and over 90% said financial support was needed to implement it.

As working environments differed by industry, occupation, and company size, concerns arose that work-from-home created discord within the same workplace. The higher the satisfaction with remote work, the more employees in industries or roles without such opportunities felt deprived.

A survey by the job portal 'Incruit' in July 2020 of 530 Korean workers illustrates this. When asked if "work-from-home expands inequality among workers," 8 out of 10 (81.2%) agreed. After COVID-19, 70% of large company employees reported working from home, compared to 61.5% in mid-sized companies and 47.5% in SMEs. There was a significant gap in work-from-home adoption by company size.

◆ Will Technology Expand Remote Healthcare and Education?

However, some fields previously thought impossible for remote work are gradually becoming feasible due to technological changes. The pandemic prompted various companies and professions to recognize the need for digital transformation and take action.

One of the most spotlighted jobs during COVID-19 was delivery. With face-to-face activities restricted, delivery workers bringing food and daily necessities to doorsteps increased worldwide. It is common to see people riding motorcycles or bicycles with bags bearing delivery company logos. Nicholas Bloom, a Stanford University professor researching remote work, predicts that as delivery robots are gradually introduced through technological development, humans operating them will be able to work remotely from home. While humans intervene when robots encounter problems during delivery, one person can manage up to 10 robots, increasing efficiency.

[Image source=EPA Yonhap News]

Global consulting firm McKinsey conducted a survey in June last year of 25,000 U.S. workers and stated, "Opportunities to work flexibly vary by industry and role within industries." They reported that some jobs previously considered impossible to do remotely are now partially done from home. McKinsey added, "Even workers involved in food preparation or transportation said they perform some tasks remotely."

Typical examples include teachers and healthcare professionals. According to McKinsey's survey, about half of teachers and librarians work from home, and 45% of healthcare workers said remote work was possible. Compared to the past, technological advances enabling online education and telemedicine have increased the feasibility of remote work in these professions. Professor Bloom forecasts, "There are currently jobs that cannot be done remotely, but their number will decrease over time."