[Exclusive] "300 Cases in the First Half"…Unceasing Industrial Accidents in Large Mart

Major Industrial Accidents in Large Marts Increasing Annually
300 Cases in First Half of This Year... Expected to Hit Record High
Decrease in New Hires and Job Mismatch Cited as Main Causes
Experts Say "Need to Find Consensus by Listening to Job Preferences"

Despite the increasing attention from government authorities on industrial accidents, the number of industrial accidents occurring at major large-scale marts (Emart, Lotte Mart, Homeplus) has been rising every year. Mart workers point out that since the COVID-19 pandemic, large marts have reduced new hires, significantly increasing the workload per person, and that due to large-scale 'store reorganizations,' more workers have been assigned to new tasks outside their original duties. Experts advise that while workforce and store reorganizations at large marts may be practically unavoidable to improve operational efficiency, marts should strive to ensure workers' working conditions as much as possible by, for example, surveying individual preferences during reassignment processes.

301 Cases in the First Half of This Year Alone... Expected to Set a Record High

According to the 'Status of Industrial Accidents in Major Distribution Companies' submitted to Asia Economy by the office of Hong Seok-jun, a member of the People Power Party, the number of industrial accidents at major large marts in the first half of this year was recorded at 301 cases. The number of industrial accidents at large marts has been increasing annually, rising from 192 cases in 2017 to 539 cases in 2022, an increase of over 180% in five years. In particular, the number surged sharply starting in 2021 (531 cases), when large marts actively shifted to online operations and restructured their stores due to COVID-19. Since the number has already exceeded 300 cases in the first half of this year, the prevailing opinion is that it will set another record high.

Examining industrial accidents by type from 2017 to the first half of this year, minor accidents accounted for an overwhelmingly high proportion. The most frequent type of accident was 'slipping or tripping,' accounting for 26.6% of all cases. This was followed by 'collisions' (10.2%), 'falls' (9.4%), and 'cuts, lacerations, or stabbings' (9.0%). Although the proportion was not high, fatal accidents have also occurred steadily each year. In 2017 and 2018, one fatal accident each occurred at Lotte Mart, and in 2019 and 2020, one fatal accident each occurred at Homeplus. Most fatal accidents happened in logistics warehouses within the marts.

Among the companies, Homeplus had the highest number of industrial accidents among the three major large marts. From 2017 to the first half of this year, Homeplus recorded a total of 1,112 industrial accidents, surpassing Emart (970 cases) and Lotte Mart (455 cases). The number of accidents recorded up to the first half of this year was also highest at Homeplus with 153 cases, ahead of Emart (102 cases) and Lotte Mart (46 cases).

"Increase New Hires and Guarantee Existing Duties"

Mart labor union members cite 'reduced new hiring' and 'mismatch between workforce and tasks' as the reasons behind the increase in industrial accidents. After COVID-19, as non-face-to-face and online consumption became active, major large marts tended to reduce the scale of new hires, increasing the workload per worker. Additionally, as large marts undertook extensive store reorganizations, workers reassigned to other stores were frequently assigned unfamiliar tasks.

In fact, the number of employees at major large marts has consistently declined over the past five years from 2019 to the first half of this year. Among the three companies, Emart, which has the largest workforce, decreased from 25,779 employees in 2019 to 23,295 in the first half of this year, a 9.6% reduction over five years. During the same period, Lotte Mart decreased from 12,985 to 10,986 employees, a 15.39% drop. Homeplus also saw a 9% decrease, from 22,000 to 20,000 employees. Notably, since 2020, Homeplus has implemented a system called 'integrated department operation,' which abolished fixed departments for tasks such as cashiers, food display, and logistics placement, and instead assigns tasks flexibly based on store operation conditions. While management claims this is an unavoidable measure for operational efficiency, the labor union argues it is 'shuffling personnel.'

Experts advise that while it is inevitable for large marts to adjust workforce and stores in response to changing times, management and workers should strive to find a consensus. Professor Kim Seong-hee of Korea University Graduate School of Labor Studies pointed out, "When a large mart closes, hundreds of mart workers at that store lose their jobs. It would be fine if they worked under the same conditions, but the problem is that most workers are assigned to unfamiliar tasks at stores they do not want to work at." She added, "If reassignment is unavoidable due to store reorganization, conflicts should be managed by reflecting workers' opinions as much as possible, such as by listening to individual preferred tasks."

There were also calls to improve working conditions in specific locations with high industrial accident risks, such as logistics centers and underground parking lots. Poorly ventilated logistics centers and parking lots are places where worker deaths frequently occur during summer. In June, a man in his 20s, Mr. A, who was organizing carts at a large mart, died after complaining of chest pain while working in an underground parking lot where the daytime temperature reached up to 33 degrees Celsius. Professor Kim emphasized, "The places within large marts where industrial accidents occur most frequently and are most likely to lead to serious accidents are logistics centers and underground parking lots. It is necessary to provide workers with sufficient rest time, appropriate staffing, and strengthened safety regulations through focused management."

Additionally, there were opinions that the effectiveness of the Serious Accident Punishment Act should be enhanced. Although the fatal accident rate is not high, fatal accidents at large marts occur from time to time, so the Act should be revised to a level that can raise awareness in the industry. Since the Serious Accident Punishment Act was enacted in January 2022, there have been no cases where the Act has been applied to large marts with 50 or more employees.

Professor Kim Yoon-tae of Korea University’s Department of Sociology said, "The purpose of the Serious Accident Punishment Act is not punishment itself but to raise awareness in the same industry. Since the distribution industry has a relatively lower risk of fatal accidents compared to other industries, it may neglect worker safety management. Therefore, enhancing the Act’s effectiveness to a level that can warn the industry should be considered."