[Q&A] "Restricting Late-Night Delivery Through Standard Contracts, Introducing Five-Day Workweek"... "Applicable to All Businesses"

Government Announces 'Measures to Prevent Overwork of Delivery Workers'

Clarification of Employer Obligations to Prevent Long Hours and High-Intensity Labor
Reducing Worker Burden through Volume Adjustment, Night Delivery Restrictions, and Expansion of Five-Day Workweek
In-Depth Cardiovascular Disease Diagnosis for High-Risk Overwork Groups
Expanding Distribution of Standard Contracts to Improve Unfair Practices

Minister Lee Jae-gap of the Ministry of Employment and Labor (right) and Minister Kim Hyun-mi of the Ministry of Land, Infrastructure and Transport are announcing the "Measures to Prevent Overwork of Delivery Workers" on the 12th at the Government Seoul Office in Jongno-gu, Seoul. The government plans to initiate social discussions to improve working conditions, including the introduction of a five-day workweek for delivery workers, and will operate a special reporting period until the end of this year to identify unfair practices. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lee Chun-hee] The government has established a comprehensive plan to prevent overwork among delivery workers, following a surge in delivery tasks due to the spread of the novel coronavirus infection (COVID-19), which resulted in the deaths of more than 10 delivery workers.

On the 12th, Minister of Employment and Labor Lee Jae-gap and Minister of Land, Infrastructure and Transport Kim Hyun-mi announced this joint 'Delivery Worker Overwork Prevention Plan' at the Government Seoul Office.

The plan includes strengthening the obligations of delivery business owners and preventing abusive practices and unfair customs. It promotes the mandatory application of industrial accident insurance for delivery workers, limits late-night deliveries through labor-management consultations, and plans to expand a five-day workweek. Improvements will also be pursued for sorting tasks, which have seen significant differences in opinions between labor and management, to facilitate smooth operations.

Minister Lee said, "Since the first delivery service was launched in 1992, the delivery industry has continuously grown and has become a universal service for the public due to the rapid growth of mobile shopping and the COVID-19 situation," but added, "this year, the deaths of 10 delivery workers have revealed the limits of quantitative growth." He stated, "We will improve the system to prevent overwork among delivery workers and expand the social safety net to improve their working environment."

Minister Kim also said, "We will create an environment where delivery workers at the forefront of this universal service can work safely and healthily," and pledged to improve unfair practices in the delivery industry and build infrastructure to prevent overwork.

Minister of Employment and Labor Lee Jae-gap is leaving after announcing the "Measures to Prevent Overwork of Delivery Workers" on the 12th at the Government Seoul Office in Jongno-gu, Seoul. The government plans to initiate social discussions to improve working conditions, including the introduction of a five-day workweek for delivery workers, and will operate a special reporting period until the end of this year to identify unfair practices. Photo by Kim Hyun-min kimhyun81@

The following is a Q&A session with Kim Dae-hwan, Director of Labor Standards Policy at the Ministry of Employment and Labor; Baek Seung-geun, Director of Transportation and Logistics at the Ministry of Land, Infrastructure and Transport; and Song Sang-min, Director of Market Surveillance at the Fair Trade Commission.

▲ The plan mentions that restrictions on late-night deliveries and a five-day workweek remain at the level of recommendations or inducements. How effective do you expect these measures to be?

- (Baek Seung-geun) Some companies already do not conduct late-night deliveries or have implemented a five-day workweek, and there are various forms depending on the delivery company and local branches. Once the 'Living Logistics Service Act' is passed, a standard contract will be created and distributed within the law. Detailed matters will be agreed upon through consultations with the industry and labor unions, and reflected in the standard contract to enable different delivery practices at the field level than before.

▲ To reduce delivery workers' working hours, workforce expansion is essential. However, the plan only mentions social discussions about workforce expansion. Are there any rough plans? Also, how many workers do you think need to be added to set daily work hour limits and implement a five-day workweek?

- (Baek Seung-geun) Reducing working hours, implementing a five-day workweek, and workforce expansion are all interconnected. We are currently conducting a field survey to analyze how much volume should be adjusted and what the appropriate working hours should be. For example, the intensity of work differs between sites with automated sorting machines and those without, so it is not possible to set a uniform standard. The Ministry of Land, Infrastructure and Transport and the Ministry of Employment and Labor will discuss and set recommended levels based on the survey results. Please understand the five-day workweek in this context as well. Regarding workforce expansion, large delivery companies agreed last month to hire about 6,000 sorting workers. We will continue to monitor to ensure gradual expansion.

▲ The plan also mentions social discussions about increasing delivery fees. What do you consider an appropriate level?

- (Baek Seung-geun) The mention of delivery fee increases is part of structural improvements in the plan. The media has raised issues such as the 'white margin' problem, and we are considering what kind of response would be appropriate. Since various stakeholders such as consumers, shippers, and the delivery industry are involved, we plan to establish a social body to conduct detailed discussions.

▲ The plan states that over 500 billion KRW in policy funds will be provided as low-interest loans and a logistics fund will be created. How do you plan to secure the budget?

- (Baek Seung-geun) The COVID-19 pandemic exposed how outdated the Korean logistics system is. Until now, investment in logistics systems was considered a private sector matter, so government investment was insufficient. Therefore, next year, we have already agreed with the Korea Development Bank and others to create policy funds worth 500 billion KRW for the first time. Currently, market loan interest rates are about 2.6-2.7% annually. The next year's government budget includes a 2 percentage point interest subsidy. The fund is also being prepared mainly by the Korea Development Bank and policy banks. We believe that these funds, when invested next year to improve logistics automation and sorting, will greatly help reduce the labor intensity of delivery workers.

▲ I understand that support measures such as subsidies to delivery companies are being considered to expand the five-day workweek. Could you provide details?

- (Employment Ministry official) Specific implementation plans will be derived after the social discussion body is formed. Some media reported that subsidies would be provided if the five-day workweek is implemented, but there has been no discussion about the government providing subsidies related to implementing Saturday holidays during the plan discussions. That is a misunderstanding.

Minister of Land, Infrastructure and Transport Kim Hyun-mi (left) and Minister of Employment and Labor Lee Jae-gap are entering the Government Seoul Office in Jongno-gu, Seoul on the 12th to announce the "Measures to Prevent Overwork of Delivery Workers." The government plans to initiate social discussions to improve working conditions, including the introduction of a five-day workweek for delivery workers, and will operate a special reporting period until the end of this year to identify unfair practices. Photo by Kim Hyun-min kimhyun81@

▲ You mentioned that the standard contract will be used as a requirement for recognizing (registering) delivery operators from the first half of next year to expand its distribution. Does this apply only to new operators?

- (Baek Seung-geun) The standard contract applies to both new and existing companies. Since delivery operators are recognized annually through a public notice, compliance with the standard contract can be continuously monitored.

▲ The plan includes conducting in-depth health examinations for 1,000 high-risk overwork groups among delivery workers. How will the budget for this be secured?

- (Kim Dae-hwan) Currently, for workers such as sanitation workers, issues like cardiovascular and musculoskeletal diseases are occurring, so a pilot project for customized health examinations is being conducted this year. Similarly, for delivery workers and other occupations with high incidence of cardiovascular and musculoskeletal diseases, customized health examinations will be conducted on a separate track. Adding items for cardiovascular and musculoskeletal diseases to health examinations typically costs about 65,000 KRW. Reflecting this, the cost is estimated at about 70,000 KRW per person and should be included in next year's budget. We are actively working to include this in the budget discussions for next year.

▲ Several tasks in the plan require social discussions. How will these social discussions be conducted?

- (Baek Seung-geun) We are conducting practical consultations on the composition of the social discussion body. Stakeholders including the National Assembly, government, shippers, labor unions, delivery operators, and consumers will all participate. We are also preparing practical agendas such as the five-day workweek and delivery price structure improvements to be discussed by the body. The body will be launched soon, and we will announce how it will operate.

This content was produced with the assistance of AI translation services.