On February 10, unionized workers charged towards CJ Logistics headquarters in Seoul to protest their dire working conditions. This happened during a major strike that started December 28, 2021, with 1,700 delivery workers refusing to work unless CJ Logistics agreed to negotiate better working terms. Although the strike was thought to come to an end on March 2, the unexpected slowdown strike demonstrates that a long-term solution will require significant work.

The Build-Up

The working conditions of delivery workers have long been at the center of controversy. A particularly heated issue is whether they should be considered laborers or self-employed. Laborers are protected by the Labor Standards Act, while the self-employed are not. In June 2021, the National Labor Relations Commissions (NLRC) implied that delivery workers should, in fact, be considered laborers. However, because they do not technically belong to the company and work on a contract basis, many still believe that they should be classified as self-employed.

Last year, delivery workers demanded better working conditions after reports of a rising number of deaths due to exhaustion while sorting packages. This was thought to be at least temporarily solved in June 2021 when both workers and management, along with the government and the National Assembly of Korea, came to a consensus that seemed to patch up the conflict temporarily.

The consensus involved implementing a few measures that would improve the overall working conditions. In particular, workers were promised that an additional 3,000 sorting positions would be introduced in the new year, while delivery fees were to be increased by approximately 170 Korean won (KRW), a proportion of which would be used to enhance their working environments. Also, they would not have to work more than 12 hours a day or 60 hours a week. However, during the strike, workers claimed that they did not receive what was promised, and demanded actual improvement.

64 Days of Fury

The delivery workers’ rage arises from three main issues. The first concerns the annexed agreement with CJ Logistics. Last year, when a standard contract was agreed upon, CJ Logistics demanded an additional annexed agreement be negotiated with their workers. This agreement included same-day deliveries and working six days a week. Workers claimed that these conditions fail to improve their working conditions, while CJ Logistics said that they are perfectly fine, as they are based on the standard contract.

The second is the delay in hiring additional sorting workers. This was to be implemented from January 2022. However, according to spontaneous on-site inspections by the Ministry of Land, Infrastructure and Transport (MOLIT), only seven delivery sites out of 25 had completely removed delivery workers from the sorting process. The MOLIT interpreted these statistics positively, saying the additional hiring is showing steady progress. CJ Logistics agreed with MOLIT’s position and claimed the promised recruitment drive is well underway.

The final issue revolves around how the increased delivery fees are being spent. Although delivery fees were increased, there is no concrete evidence that the money is being used for the workers. CJ Logistics reported in its 2021 disclosure information that, during the first quarter, the company made 16.4 billion KRW in delivery profits. While delivery fees have increased, they made 52.5 and 62.4 billion KRW in the second and third quarters, respectively, representing considerable growth. Workers argue that the increased fees are being used to fatten the company’s profit, while management asserts it is being used for the workers, as agreed upon.

There is no easy way to determine who is right here, but one thing for certain is that this strike was bigger than ever before. Over a span of 64 days, the union gradually expanded its “territory.” After occupying CJ Logistics headquarters, they held an assembly in front of CJ Chairman Lee Jae-hyun’s house on February 16 and even rallied in front of CJ CheilJedang headquarters and the Korea Enterprises Federation (KEF).

CJ Logistics delivery workers demanding communication with management (Provided by Maeil)
CJ Logistics delivery workers demanding communication with management (Provided by Maeil)

 

To the workers, the strike was a muchneeded fight, one that would earn them a better workplace and easier lifestyle. However, most of Korea looked upon them with a disapproving gaze. According to CJ, the strike affected approximately 37 cities and counties, including some districts in Seoul. Buyers and sellers of products were inconvenienced, as deliveries were continuously delayed. In particular, selfemployed small business owners were widely affected, with their sales taking a strong hit from the strike.

Back to Square One?

Near the end of February, the union showed signs of defeat, most significantly when the salt-and-water fasting protest by the head of Korean Confederation of Trade Unions (KCTU) Jin Kyung-ho resulted in serious health risks. On March 2, the union ended their occupation of company headquarters, and the Cooperative Association of CJ Logistics Courier Agencies and the union settled on negotiations, with all workers expected to return to work by March 7. Revisions of the annexed agreement will be finished by June 30.

According to Professor Byeong-Hoon Lee (Sociology, Chung-Ang University), “What is more important than the consensus is that all parties involved should implement the agreement dutifully on their parts.” Unfortunately, this did not appear to be the case this time. On March 4, workers in areas including Seongnam, Gwangju, Ulsan, and Changwon announced a sudden slowdown strike, asserting that the annexed agreement – one of the main causes of this protest – was being brought up once again. Without consistent and clear communication, the unhealthy cycle of mistrust and turmoil will only persist.

Professor Byeong-Hoon Lee (Provided by Professor Byeong-Hoon Lee)
Professor Byeong-Hoon Lee (Provided by Professor Byeong-Hoon Lee)

 

Overall, the CJ Logistics delivery workers’ fight was brutal. Delivery workers have long had a difficult job, so a solution for their poor working environments is much needed. If their demands continue to be ignored or smoothed over temporarily, the problems will only get more out of hand. There is no denying that further negotiations require both sides to break down the walls and start communicating |CJ Logistics delivery workers demanding communication with management more effectively

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