Daiso under fire for labor exploitation

The Korea Times

The Korea Times

National

Sat, September 23, 2023 | 05:35

Society

Daiso under fire for labor exploitation

Posted : 2023-04-24 17:01

Updated : 2023-04-25 10:00

The minor progressive Justice Party's Rep. Ryo Ho-jeong, center speaking to the microphone, holds a press conference with Daiso's labor unionists and activists to condemn the one-dollar-shop chain's labor exploitations at the National Assembly in Seoul, Monday. Newsis

By Lee Hae-rin

Korea's largest one-dollar-store chain, Daiso, is facing fierce criticism for exploiting its workers at stores and warehouses, as well as infringing on their basic labor rights and freedom of thought and ideas in the company's employment regulations.

Rep. Ryu Ho-jeong of the progressive minor opposition Justice Party and members of the Korean Public Service and Transport Workers' Union (KPTU) held a press conference at the National Assembly in Seoul, Monday, to condemn Daiso A-sung's (part of the Asung Group) alleged labor exploitation.

Daiso A-Sung is a Seoul-based distributor of the Daiso chain, the first and largest daily supplies supplier introduced to the country in 1997. The company operates 1,440 stores nationwide with over 10,000 employees working in the stores and warehouses combined.

However, behind the success of the one-dollar-store chain's ability to make a profit of nearly 3 trillion won ($2.25 billion) last year, was the company's exploitation of employees' overtime and intense labor practices, according to the union.

According to the Korea Workers' Compensation and Welfare Service's report on Daiso's industrial accidents between 2017 and 2022, submitted at the request of Ryu, the chain saw a steep increase in industrial accident applications from 48 in 2017 to 114 cases in 2022.

The company received a total of 478 applications regarding industrial accidents since 2017, the report showed, among which only 451 were recognized. Most cases were to do with middle-aged female workers, who were diagnosed with fractures and musculoskeletal diseases as a result of their demanding working conditions.

Visitors enter the Myeongdong branch of the country's largest daily supply store Daiso in central Seoul, March 14. Newsis

The employees working at warehouses were also exposed to dangerous working conditions, where fire prevention equipment was improperly installed, according to the National Fire Agency's inspection report on Daiso's warehouses between 2020 and 2022.

In response, Ryu promised to bring Daiso A-Sung's CEO Park Jung-boo to the year-end parliamentary audit to question the company about its questionable labor practices.

"I will also question the labor minister on his responsibilities in failing to thoroughly screen Daiso's employment regulations," the lawmaker said during Monday's press conference, urging the labor ministry to dispatch officials to inspect the company concerning the labor exploitation allegations.

In 2017, the company caused a stir from reports that it forced its employees to sign a supplementary contract to, "absolutely obey," a superior's business instructions and orders when they signed their employment contracts.

The company's rules of employment still contain several infringements of basic labor rights. It specifies that employees that hold or participate in an assembly or a collective action, give a speech or practice any media activities without the consent of the company, may receive disciplinary action.

Lee Jai-chul, the leader of the KPTU's Daiso warehouse branch told The Korea Times after the press conference that only a few of over 2,000 workers in the warehouse joined the union since it began in January, out of the fear that they will be penalized by the company.

"The union tried to protect workers' rights and safety through conversations with the company," Lee said, but the attempts have been "sabotaged, monitored and controlled by the company in subtle ways." The company seemingly denies the union and has not responded to its request to hold negotiations, he said.

Korea's constitution grants three primary rights regarding labor: The right to independent association, collective bargaining and collective action, and to grant workers human dignity.

However, Daiso A-Sung denied the union's claim that the company does not recognize the union and avoids or unfairly penalizes its employees' collective actions.

"No employee was penalized or faced disadvantage from the rules of employment," the company official told The Korea Times, Monday, explaining that the company is considering to amend its rules of employment in response to the criticisms that the company breaches workers' basic labor rights.

However, the company did not comment in detail on how or when the revision will be made.

lhr@koreatimes.co.kr