Coupang Promises 2,000 Jobs... Why Are Labor Groups 'Boiling Mad'?

100 Billion Investment to Establish New Logistics Center in Wanju, Jeonbuk
Local Economy Optimistic... Worker Death Issues Persist
"Coupang Consistently Downplays or Distorts Deceased Workers' Labor"
"Employment Rule Briefings Are Mere Formalities... Must Be Fully Nullified"

Photo of the exterior of the New York Stock Exchange in the United States at the time of Coupang's IPO

[Asia Economy Reporter Kim Bo-kyung] Coupang is investing over 100 billion KRW to build a new logistics center in Wanju-gun, Jeollabuk-do. With an expected creation of around 2,000 new jobs, there is growing anticipation for regional economic revitalization. However, it is difficult to be purely optimistic. Since last year, a total of five workers have died while working at Coupang logistics centers. There are increasing demands for Coupang’s social responsibility, including improvements in working conditions.

On the 26th, Coupang announced that it signed a Memorandum of Understanding (MOU) with Jeollabuk-do and Wanju-gun to attract investment for the establishment of a new logistics center. This is Coupang’s first domestic investment funded by capital raised through its listing on the New York Stock Exchange. Coupang plans to invest over 100 billion KRW to build the new logistics center in Wanju-gun.

Coupang stated, "The Coupang Wanju logistics center, which will cover nearly 100,000 square meters, will be the largest in Jeollabuk-do," and added, "It is expected to create about 2,000 new jobs." Coupang plans to prioritize hiring local residents and pledged to work on eliminating employment disparities based on gender and age.

However, on the same day, labor groups issued a critical statement saying that Coupang has not presented support measures for victims of death or plans to prevent recurrence. According to the National Public Transport Union, a total of nine workers have died while working at Coupang since last year, five of whom died while working at logistics centers.

The Public Transport Union pointed out, "Despite the consecutive deaths of workers, Coupang has consistently taken a stance that downplays or distorts the labor of the deceased." As of last year, the rate at which the company denied industrial accidents occurring at Coupang was 28.5%, more than three times higher than the national average of 8.5% for all workplaces.

Asia Economy DB=Photo by Jinhyung Kang aymsdream@

Following a hearing on industrial accidents held last month at the National Assembly’s Environment and Labor Committee, Coupang announced a 'Plan to Improve Working Conditions at Logistics Centers.' The plan includes ▲limiting the number of consecutive working days for regular and daily workers ▲expanding special health examinations for night work ▲removal of the UPH (units per hour) display function for individual workers ▲conducting diagnostics on logistics center working environments.

Coupang has been holding explanatory meetings on changes to employment rules at each center since this month to reflect these measures. The Public Transport Union claims that Coupang violated the Labor Standards Act during this process. When revising employment rules that include unfavorable terms for workers, the consent of the majority of workers is required. The union stated, "The employment rules explanation consisted only of watching a 20-minute video without prior notice or access to materials, followed by collecting signatures."

They also said, "Coupang’s proposed amendments to the employment rules do not address the fundamental causes of the suffering and deaths endured by low-wage, non-regular workers," adding, "The amendments include unfavorable changes that lower workers’ wages further, require proof of health, and suppress workers’ ability to assert their rights, making them more withdrawn."

According to Coupang’s revised employment rules, restrictions on employment at other companies have been strengthened, and separate documentation is now required for sick leave. The clause "The company may grant sick leave" has been changed to "The company may grant sick leave within the scope necessary for recuperation." The conditions for converting fixed-term employees to indefinite contracts have become more stringent.

The union demands, "Coupang’s employment rules explanation meetings, which were mere formalities without properly collecting workers’ opinions, should be completely nullified and redone in a manner that provides proper information and allows for meaningful feedback."

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