[Delivery Union Above the Law] Delivery Strike Day 52... Massive Damage to Agencies and Drivers (Comprehensive)

When Will My Item Arrive? Consumers Frustrated... Daily 1 Billion Loss, Companies in Distress
Criticism of 'Trick Gatherings' Riding the Presidential Election Wave

On the 17th, as the delivery workers' union continued its sit-in protest occupying the CJ Logistics headquarters, a press conference titled "Condemning the Chaebol CJ Logistics for Violating the Social Agreement to Prevent Delivery Workers' Deaths from Overwork! Service Federation Labor Safety and Health Committee" was held in front of the CJ Logistics headquarters in Jung-gu, Seoul. / Photo by Moon Honam munonam@

[Asia Economy Reporters Kiho Sung, Daeyeol Choi, Hyunseok Yoo] Kim Seok-hyung (52, pseudonym), who operates a CJ Logistics agency in Gyeonggi Province, has recently been unable to sleep at night. Due to the strike by the Korean Confederation of Trade Unions (KCTU) Nationwide Courier Workers' Union (Courier Union), the delivery volume during the peak season from the end of the year to Lunar New Year has decreased, causing his profits to shrink by more than 30%. While profits are declining, the burden of fixed costs is increasing. Expenses such as office operation costs, taxes, and labor costs are considerable. Kim lamented, "The biggest burden is labor costs. We hired additional sorting staff to reduce the workload of delivery drivers, but due to the reduced volume, it is difficult to cover labor costs."

As the strike by the KCTU Nationwide Courier Workers' Union (Courier Union) CJ Logistics headquarters passes 50 days, the damage to company-affiliated agencies and non-union delivery drivers is snowballing.

According to the courier industry on the 17th, the strike that began on December 18 last year has caused agencies to suffer losses and face the risk of closure.

Kim Jong-cheol, president of the CJ Logistics Agency Association, said, "Normally, income increases by about 10-15% from November to January, but since the strike started at the end of last year, it has been negative," adding, "In January this year alone, sales dropped by more than 30% compared to the previous year."

The hardships of non-union delivery drivers are also severe. Kim Seul-gi, representative of the Non-Union Courier Alliance, claimed, "After the strike, clients have left, and even with fewer volumes, it has dropped by more than 30%."

Amid worsening public opinion against the illegal and unjustified strike, union members whose income has decreased due to participation in the strike are also showing signs of wavering. Of the approximately 1,650 union members who joined the strike in December last year, about 200 have left and returned to work as of today.

As the courier union's strike and illegal occupation prolong, damage and confusion across society are intensifying. The damage is spreading comprehensively to frontline courier agencies, CJ Logistics, which is the target of illegal occupation, consumers, and small to medium-sized consignors. Furthermore, the conflict is escalating into a labor-labor dispute. The government, which should mediate, is standing aside, saying it is a matter for labor and management to resolve. The political sphere is also cautious, fearing losing votes amid the presidential election season, leaving the resolution of the courier strike tangled and complicated. The union, without considering an exit strategy, continues a standoff on the brink, increasing the likelihood of a prolonged strike.

◇Loss of Headquarters Customers... Unable to Accurately Estimate Damage= The biggest victim of the prolonged courier union strike is CJ Logistics. Especially since the union's occupation of the headquarters on the 10th, damage has increased, but it is difficult to estimate the exact amount. A CJ Logistics official said, "We are focusing on deliveries to cover gaps caused by the strike, so the exact damage scale is not yet calculated," adding, "It is roughly estimated that losses of about 1 billion KRW per day are occurring."

The most concerning part is the loss of clients. When clients change courier companies, it directly leads to losses for the headquarters, agencies, and delivery drivers. Some shopping malls have announced that they will change their courier company from CJ Logistics to others. A representative of the agency association said, "Once clients start entrusting goods to companies other than CJ Logistics, volumes will decrease, and even if the union returns to deliver, recovery is impossible," adding, "It will require significant sacrifices to regain this."

Consumers continue to complain about delivery delays. Currently, there are about 2,500 CJ Logistics union members. Areas with concentrated union members, including Bundang-gu and Sujeong-gu in Seongnam City, Gyeonggi Province, as well as Gwangju, Changwon, Gyeongju, Pohang, and Ulsan, are experiencing delivery delays of up to 1-2 weeks.

The confrontation between union and non-union members is also intensifying. The National Non-Union Courier Alliance held a rally on the 13th, shouting slogans such as "Non-union drivers are dying due to unjustified strike" and "Union holding customers' goods hostage, don't take away the right to work and freedom," demanding the strike's withdrawal. Following the illegal occupation and worsening public opinion, internal disintegration among union members participating in the strike is emerging. The number of participants has decreased from 1,650 to 1,450 as of this date. An industry insider said, "As volumes decrease, income also drops, and recently, more non-union delivery drivers are working part-time jobs," adding, "We are truly livelihood workers, but we are at risk of losing our jobs."

◇The Original Purpose of "Preventing Delivery Drivers' Overwork" Lost= The problem lies in the difficulty of finding a solution window for the courier strike, which has lasted over two months. The strike and illegal occupation of the headquarters arose from unresolved differences between the union and the company over a social agreement aimed at preventing excessive labor by courier workers. After the illegal occupation, the conflict shifted away from the original issue of solving delivery drivers' overwork, with rallies held in front of the CJ Group chairman's residence and delivery of demands. From the 21st, a general strike involving union members from other courier companies such as Lotte and Hanjin is expected.

The industry views the ongoing extreme conflict as stemming from the government's recognition of the courier union in November 2017. Although courier union members are individual business owners, the Ministry of Employment and Labor recognized them as workers under the Labor Union Act, not the Labor Standards Act, allowing union formation. At that time, since courier services had become deeply embedded in daily life, there were many predictions that union influence would be strong and collective actions would have significant impact. The current law is also inadequate. The Labor Union Act lacks negotiation procedures or strike regulations for multiple employers or special employment types like courier drivers. In June last year, the Central Labor Relations Commission recognized CJ Logistics as a joint employer with agency owners, but the company filed an administrative lawsuit, and the case remains unresolved.

There are also criticisms that CJ Logistics became a concentrated "target" after being singled out by the union. The exclusion of Saturday work is known as a major issue. Initially, CJ Logistics planned to exclude Saturday work as per the union's opinion but to resolve this by hiring additional staff. However, the union opposed this, making CJ Logistics the strike's target. Another industry insider explained, "If Saturday work is removed, their income decreases, so the strike targeted CJ Logistics due to this resentment."

[Image source=Yonhap News]

◇Election-Linked Cunning Rally= Especially as the courier union has been occupying the CJ Logistics headquarters for a week, an unprecedented rally using election campaign vehicles has continued. The courier industry and CJ Logistics have strongly criticized this as a "cunning rally," but the union insists it is a legitimate act and refuses to back down.

On the 15th, the Progressive Party presidential candidate Kim Jae-yeon held a campaign kickoff event in front of the CJ Logistics headquarters, where the courier union was conducting an occupation. The courier union has been striking since December 28 last year, continuing for 52 days, and began occupying the headquarters on the 10th of this month.

The problem is that the courier union's rally cleverly evaded quarantine guidelines by combining with the presidential election campaign. The rally was conducted in the form of Kim's campaign, allowing about 700 union members to participate, exceeding the assembly limit of 299 people set by quarantine guidelines. According to the guidelines, there is no limit on the number of participants in election campaigns. Kim supported the union rally with one campaign vehicle, and some union members, including Chairman Jin Kyung-ho, wore badges labeled "election staff" while participating.

The courier union announced it would begin an "indefinite protest in Seoul" in front of the headquarters from that day. They intend to increase participants to thousands, but even then, a single campaign vehicle would allow the rally to continue.

Although criticized as a "cunning rally," there is no effective way to stop it. Police arrived at the rally and recommended dispersal, but could not enforce it due to the union's claim of election campaigning, and some police forces even withdrew. A Central Election Commission official said, "Election campaigning via campaign vehicles allows speeches by campaign staff even without the candidate," adding, "Anyone registered as a campaign staff member can speak on the platform."

CJ Logistics employees, suddenly deprived of their workplace, expressed bewilderment. One employee said, "We cannot handle work in the office and are moving between cafes and other places," adding, "We have no idea if large rallies will continue until the day before the presidential election, which is a bleak situation."

Criticism is also mounting that the government is standing by while the union conducts "cunning rallies." Currently, the Ministry of Employment and Labor has not ruled the headquarters occupation as an illegal dispute. There is disagreement between the ministry and the Central Labor Relations Commission over whether the employer is the occupied CJ Logistics headquarters or the agencies. The police say they can intervene only if the occupation is ruled an illegal dispute and are watching the situation. An industry insider said, "The government is not taking a clear stance due to the presidential election," adding, "The political sphere is also cautious about issuing statements, making the situation more frustrating."

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