Kakao Mobility Reaches Final Agreement on 'Proxy Union Collective Bargaining'... Also Agrees on Service Disruption Support Measures

Data Center Fire Service Disruption
Agreement to Provide Operational Support and Benefits Rather Than Expected Revenue Compensation

On the 26th, the National Substitute Driver Labor Union and Kakao Mobility held a collective agreement signing ceremony at the Kakao Mobility building located in Pangyo. (Photo by Kakao Mobility)

[Asia Economy Reporter Seungjin Lee] Kakao Mobility and the National Substitute Driver Labor Union have reached a final agreement on the tentative collective bargaining proposal presented to improve the "substitute driving environment and safety." Additionally, they announced on the 27th that they also discussed support measures for substitute drivers related to the service disruption caused by the recent fire at the SK Data Center in Pangyo.

Kakao Mobility and the National Substitute Driver Labor Union held a "Collective Agreement Signing Ceremony between Kakao Mobility and the National Substitute Driver Labor Union" at Kakao Mobility’s headquarters in Pangyo, attended by Kim Juhwan, Chairman of the National Substitute Driver Labor Union, Kang Kyuhyuk, Chairman of the Service Federation, Lee Suwon, Senior Vice Chairman, and Ahn Kyujin, Vice President and Head of Business Division at Kakao Mobility.

This approval of the agreement and the signing ceremony mark the first time a related platform company has reached an agreement with a substitute driver union. Kakao Mobility explained that the tentative agreement reached on the 6th was passed with 84.89% approval from union members, concluding without dispute, which adds greater significance.

Both parties declared that they will continue to work together to establish measures to improve the substitute driving environment, including ▲ phased abolition of the Pro Service, ▲ establishment of a grievance committee, ▲ appointment of substitute driving industry safety guardians, and ▲ improvement of late-night mobility rights for substitute drivers. They also reached a final agreement to discuss detailed plans for each item through quarterly regular negotiations.

They also discussed support directions for substitute drivers who experienced inconvenience due to the service disruption caused by the data center fire on the 15th. The National Substitute Driver Labor Union and Kakao Mobility agreed to develop support measures based on mutual understanding and consensus that there are various phone call programs and calling apps within the industry, providing drivers with a wide range of choices, and that due to the nature of the substitute driving industry, platform participation forms are not uniform, making it difficult to estimate specific damages.

Accordingly, both sides agreed that providing support and benefits for future operations is more realistic than compensation for expected earnings during the disruption period. Kakao Mobility plans to discuss and finalize details such as the target recipients, implementation timing, and specific support scale with the substitute driver union, and will sequentially announce and implement confirmed matters.

Kim Juhwan, Chairman of the National Substitute Driver Labor Union, evaluated, "This is the first collective bargaining agreement in the related platform industry to be finalized without dispute. This agreement is significant as it lays the foundation for industrial safety and rights enhancement not only for Korean substitute drivers but also for platform workers." He added, "We will do our utmost to discuss and prepare effective operational support measures for substitute drivers who experienced inconvenience due to the service disruption."

Ahn Kyujin, Vice President and Head of Business Division at Kakao Mobility, said, "With the finalization of the agreement, we will sincerely discuss the detailed plans for the subsequent items by listening to industry voices." He added, "Since reflecting the field situation carefully is most important for the service disruption support measures, we plan to closely consult with the union. As this could be the first precedent for indirect compensation in the internet information and communication industry, we will strive to produce the best possible outcome."

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