Delivery Fee Will Be Changed to Actual Cost Basis... Agreement Reached Between Baemin and Minnochoong
Annual Insurance Premium Support Up to 1 Million KRW for Motorcycle Subscribers
Delivery Fee Calculation Changed from Straight-Line Distance to Navigation Actual Distance
[Asia Economy Reporter Kim Cheol-hyun] Woowa Brothers' subsidiary Woohan Cheongnyeon, which operates Baedal Minjok (hereinafter Baemin), has reached a collective bargaining agreement on delivery fees through labor-management negotiations with the Delivery Platform Branch of the Korean Confederation of Trade Unions Service General Labor Union.
According to Baemin on the 25th, the agreement includes a provision that Woohan Cheongnyeon will support insurance premiums up to 1 million KRW annually to ensure the safe operation of riders. The plan is to support insurance premiums for two years for motorcycle subscribers who have been basic contract delivery agents for more than one year and have delivery records of more than 20 deliveries per day and more than 200 days per year. Those subscribed to comprehensive paid insurance will receive 1 million KRW annually, and those subscribed to paid liability insurance will receive 500,000 KRW annually for two years. In addition, Woohan Cheongnyeon will also support insurance premiums of 1 million KRW annually for two years for riders using rental bikes.
Notably, the basis for calculating delivery fees has been changed from the previous straight-line distance to the actual distance based on navigation. Regarding distance-based surcharge fees, for distances under 675m, the base fee is 3,000 KRW; for distances between 675m and under 1,900m, it is 3,500 KRW; and for distances over 1,900m, 3,500 KRW plus 80 KRW per 100m is paid.
Furthermore, labor and management have agreed to work together to launch a mutual aid association for delivery workers. Once established, the mutual aid association will be able to provide compensation for damages in case of accidents during delivery, contributing to the expansion of the safety net for riders. This agreement will be implemented once it is approved through a vote by the union members.
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Kim Byung-woo, CEO of Woohan Cheongnyeon, said, "Through this negotiation, we have been able to achieve practical improvements in the delivery environment for riders, such as insurance premium support for motorcycle subscribers, the introduction of navigation-based actual distance calculation, and the establishment of a mutual aid association." He added, "We will continue to strive to improve the delivery environment through activities such as strengthening rider safety and education."
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