Delivery Rider Protection Measures... Small Businesses "Concerned About Cost Increase"

Riders Fear Income Decrease Due to 52-Hour Workweek

[Asia Economy Reporter Kim Cheol-hyun] The government’s decision to enact a law allowing platform workers such as delivery riders to receive labor rights protection equivalent to that of 'regular employees' has been positively received by the platform industry. This is because it establishes a safety net to address various issues that may arise during riders’ work processes. Each company stated that they are proactively working to improve the treatment of workers. The industry also expects that this will help raise social awareness of delivery riders as essential personnel and assist in supply and demand. However, full-time riders expressed concerns that if platform workers are classified as employees under the Labor Standards Act and the Trade Union Act, and labor laws such as the 52-hour workweek are enforced, income reduction could be expected. Issues of fairness also arise for those who work part-time in delivery. Small delivery agencies worry that applying the 52-hour workweek will ultimately lead to increased delivery fees.

According to related industries on the 21st, major delivery platform companies have made multifaceted efforts this year to improve the platform labor environment, which has become a social issue. A representative example is the collective agreement signed last October between Woowa Brothers, which operates Baemin Riders, the delivery service of Baedal Minjok (Baemin), and the General Service Labor Union of the Korean Confederation of Trade Unions. Both labor and management met over 20 times in six months to narrow differences and reach a final agreement. According to the agreement, the dispatch brokerage fee (200-300 KRW per order) previously borne by riders was waived. Additionally, the company agreed to provide health checkup costs and clothing allowances to riders and to offer rest support payments to riders who work under long-term contracts. They also agreed to mandate regular rider safety training and allow the company to suspend delivery services during severe bad weather, ensuring the safest possible delivery environment for riders.

Recently, Coupang Eats, which has seen a rapid increase in users, also explains to delivery riders that if they meet the conditions for industrial accident insurance recognized by the Ministry of Employment and Labor, they can receive benefits from the insurance. An industry official said, "Delivery riders play a role in determining the quality of service at the consumer interface, so each company has proactively worked to improve the treatment of platform workers. Once relevant laws are established, social awareness of delivery riders will be enhanced, and the shortage of riders compared to the rapidly increasing orders can be resolved."

However, riders are not entirely welcoming of the new protection measures. One of the main concerns is that applying the 52-hour workweek will limit working hours and inevitably reduce income. An industry insider pointed out, "For many riders who support their families through delivery work, applying the 52-hour workweek will reduce their income. Although these measures are said to protect riders, the opinions of full-time riders were not reflected." The industry also sees potential fairness issues between those who work part-time delivery jobs to supplement income after working 52 hours in their main jobs and full-time riders. Furthermore, delivery agencies anticipate increased cost burdens if the 52-hour workweek is applied.

It may also take some time for the system to settle. This is because only a portion of riders have contracts with large platforms, while the majority are independent contractors who have contracts with regional branches of delivery agencies. For example, only about 4-5% of orders generated through the Baemin application are fulfilled by Baemin Riders, with the rest handled by riders contracted with delivery agencies. An industry official said, "Since riders’ contract conditions and forms vary widely, it may take time to achieve the intended goals," adding, "Small businesses may face increased cost burdens."

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