CJ Logistics Union, Indefinite Strike D-1... "Concerns Over Year-End Delivery Crisis"

Demand for Fair Distribution of Excess Profits Due to Fare Increase
Korea Employers Federation: "Public Harm... Withdraw Unjustified Strike"

On the 20th, in front of the CJ Logistics headquarters in Jung-gu, Seoul, members of the National Courier Workers' Union and civic groups held a press conference urging courier companies to designate certain apartment complexes as no-delivery zones due to abusive practices. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Dongwoo Lee] The CJ Logistics branch of the National Courier Workers' Union under the Korean Confederation of Trade Unions Service Federation has decided to proceed with an indefinite general strike starting from the 28th, raising concerns about a year-end "logistics crisis." This marks the fourth general strike this year, with the justification being the distribution of excess profits resulting from increased courier fees. If 1,700 union members with bargaining rights simultaneously go on strike, it is expected that delivery disruptions will exceed 500,000 packages per day on average.

The CJ Logistics branch of the Courier Workers' Union stated on the 27th, "CJ Logistics is exploiting the issue of courier workers' overwork deaths for profit," and demanded, "Fairly distribute the 300 billion KRW in excess profits generated from the courier fee increase."

The 300 billion KRW in excess profits claimed by the union is calculated based on the profit CJ Logistics would gain from the 170 KRW average per-package courier fee increase implemented last April and an additional 100 KRW increase planned for January next year. The union argues that out of the 170 KRW increase, the company currently supports only 51.6 KRW, making the distribution unfair. Previously, the union had estimated the excess profits from the fee increase at 350 billion KRW but revised it down to 300 billion KRW just one day before the general strike.

In response, CJ Logistics emphasized that the union's self-calculated standards are ambiguous and that the fee increase figures are incorrect. According to the company, the average courier fee increase last April was 140 KRW, not 170 KRW. This figure was derived by individually negotiating the increase with corporate clients and then calculating the overall average.

The company also countered the claim that the support payments are low by stating that due to the relatively low sorting costs resulting from the high-level wheel sorter (automated sorting system) facilities compared to other companies, the support payments are lower. CJ Logistics began installing automated sorting systems in 2016, the first in the industry, and has invested approximately 200 billion KRW over five years.

In fact, last year CJ Logistics reported that the average revenue per courier was 85.18 million KRW, with a net income of 64.89 million KRW, indicating that wage increases have been made through commission distribution. The union’s revision of the excess profit figure from 350 billion KRW to 300 billion KRW is interpreted as partially reflecting this situation.

CJ Logistics also explained that the union’s claims regarding problematic clauses such as same-day delivery, six-day workweeks, and mandatory delivery of terminal-arrived goods are misleading. The company clarified that these clauses are additional provisions in the standard contract approved by the Ministry of Land, Infrastructure and Transport after agreement between agencies and couriers.

While the union argues that the same-day delivery and six-day workweek systems are major causes of courier overwork deaths, the company rebutted that the same-day delivery system allows for an 8-hour workday starting at noon, and that introducing a five-day workweek without social consensus with consumers is premature. Furthermore, the mandatory delivery of terminal-arrived goods pertains to non-standard courier items and operates on a system where delivery is prioritized first, with additional fees charged afterward.

The courier industry rather insists that the CJ Logistics Courier Workers' Union should refrain from forcing unreasonable strikes using consumers' goods as leverage during holidays and year-end seasons. In fact, the CJ Logistics Courier Workers' Union has conducted four general strikes this year alone. The union went on strike on January 29, two weeks before the Lunar New Year, demanding the implementation of social agreements, and held additional strikes on June 9 (second strike) and October 30 (third strike).

Including partial strikes within agencies, the total number of strikes throughout the year increases. Disputes have been ongoing, such as the strike demanding the withdrawal of dismissed members of the Changnyeong branch in February and the partial strike triggered by conflicts between the Seongnam branch agency and affiliated couriers in July.

The Korea Employers Federation stated, "This strike will severely impact the daily lives of citizens who have become increasingly dependent on online procurement of daily necessities due to strengthened quarantine measures," and urged, "We call on the courier union to withdraw this unjustified strike that pursues their interests at the expense of public life and the national economy by using specific individual companies as an excuse."

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