Industry's First Dedicated Parcel Sorting Staff Operation
100% Direct Employment Within the Year
Over 200 Billion KRW Additional Investment in Sorting Facility Automation
Coupang's logistics subsidiary, Coupang Logistics Service (CLS), announced on the 12th that it plans to increase the direct employment rate of personnel dedicated to parcel sorting to 100% within this year, operating under a fully direct employment system.
CLS has been the first in the industry to operate thousands of personnel dedicated to sorting nationwide. According to CLS, this operation of dedicated sorting personnel has allowed delivery workers to focus solely on delivery, thereby reducing the working hours of delivery personnel such as couriers.
Products from Coupang being automatically sorted by delivery area at the auto sorter. [Photo by Coupang]
CLS had been operating dedicated sorting personnel through outsourcing to specialized companies but has gradually shifted to direct employment since 2021. Currently, more than 80% of the dedicated sorting personnel are directly employed.
CLS explained that by directly employing all dedicated sorting personnel, social insurance enrollment and management will be thorough, and issues such as lack of industrial accident insurance will also be resolved. Furthermore, they expect that expanding hiring in line with future business growth will contribute to revitalizing the local economy.
CLS also plans to improve the working conditions of the dedicated sorting personnel. CLS has been advancing automation of sorting facilities, including the full introduction of auto sorters, and plans to invest an additional 200 billion KRW or more in sorting facility automation by next year. Auto sorters automatically process the step where sorting personnel manually check the invoice attached to boxes and sort them by address.
A CLS official stated, "Once the policy of direct employment for dedicated sorting personnel, which has been continuously promoted, is completed with 100% direct employment within this year, concerns about social insurance blind spots such as lack of industrial accident insurance will be completely resolved, and workers' treatment will improve. We will continue to modernize working conditions through large-scale additional investments in sorting automation facilities."
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