Coupang, Baemin under pressure from radical labor groups

The Korea Times

The Korea Times

Business

Sun, October 1, 2023 | 01:38

Companies

Coupang, Baemin under pressure from radical labor groups

Posted : 2023-06-07 16:44

Updated : 2023-06-08 11:12

An official of Coupang Logistics Service (CLS) poses with a criminal complaint against three executives of the Korean Confederation of Trade Unions for alleged defamation and obstruction of business, Monday. Courtesy of Coupang

Firms cry foul over KCTU's bid to increase influence in e-commerce industry

By Baek Byung-yeul

Coupang, Woowa Brothers and other e-commerce platform operators here are under pressure from umbrella labor groups that are encouraging unionized delivery workers to demand higher wages and better working conditions, and even to engage in activities that disrupt the firms' business activities, according to industry officials, Wednesday.

The officials say the country's two giant labor unions ― the Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions (FKTU) ― are trying to increase their influence in the rapidly growing e-commerce industry by recruiting more workers, as their memberships have been declining over the years.

"The reason why the unions are putting pressure on the e-commerce platform companies is because their incomes are decreasing. The unions are funded by the dues paid by their members and if they lose public support, they will no longer be able to survive, so they are becoming more assertive," an official from an e-commerce company here said on condition of anonymity. "To find a breakthrough, they are trying to recruit more union members, and the goal is to put pressure on the e-commerce platform providers that have a large number of employees."

Members of the delivery platform workers' union under the Korean Confederation of Trade Unions speak during a press conference in front of Woowa Brothers' building in southern Seoul, an operator of delivery platform Baemin, May 26, to announce a strike the following day demanding an increase in the basic delivery fee of 3,000 won ($2.30) per order to 4,000 won. Yonhap

On Monday, Coupang Logistics Service (CLS), a logistics subsidiary of e-commerce company Coupang, filed a criminal complaint against three KCTU executives for alleged defamation and obstruction of business, after the KCTU claimed that Coupang unfairly fired a logistics worker who missed his shift to attend his grandmother's funeral.

A Coupang spokesman accused the union of creating fake news, saying that the employee was not even fired and is under contract with an agency that contracts with Coupang, not employed directly by Coupang.

"The delivery union under the KCTU is fully aware that CLS has no role in terminating the contracts of subcontractor employees. But they continue to spread fake news for their own political purposes to defame CLS, so we have taken legal action," the spokesman said.

Since the delivery union established a branch at CLS in April, they have been protesting in front of the company's headquarters in southern Seoul's Gangnam District, demanding that the company stop dismissing workers unfairly.

Woowa Brothers, an operator of food delivery platform Baemin, has also been under union pressure amid demands for improved working conditions of delivery workers, guarantee of union activity of delivery workers and increased delivery fees.

The union said the basic fee per order, which has been frozen at 3,000 won for nine years, should be increased to 4,000 won, arguing that this is because the cost of living is rising while income is falling, except for gas and insurance. The delivery workers went on strike on two of three major public holidays last month ― Children's Day (May 5) and Buddha's Birthday (May 27).

"On June 2, Woowahan Youths, a subsidiary of Woowa Brothers, and the delivery workers tentatively agreed to a collective bargaining agreement. We will continue to negotiate on various agreements such as the basic delivery fees," a Woowa Brothers spokesman said.

baekby@koreatimes.co.kr