CJ Logistics Courier Negotiation Refusal Defeated... Industry Calls It a "Ruling Detached from Reality"

Concerns Over Ripple Effects Expanding Beyond Delivery Industry to All Sectors
Expectations of Growing Conflicts Between Subcontractor Unions and Primary Companies
"Lawsuits Over Actual Control Likely to Increase"

After a ruling stated that CJ Logistics must engage in collective bargaining directly with delivery drivers, CJ Logistics and delivery agency franchises criticized the decision as unrealistic. There are concerns that lawsuits could surge not only in the delivery industry but also regarding subcontractor labor unions' demands for negotiations and strikes with primary contractors, as well as disputes over actual control.

On the 24th, CJ Logistics commented on the Seoul High Court's ruling that day, saying, "We find it difficult to agree with the ruling, which is an unreasonable legal interpretation contrary to existing Supreme Court precedents and fails to properly reflect the realities of the delivery industry." They added, "We plan to thoroughly review the ruling once the judgment document is received and then file an appeal."

The CJ Logistics Delivery Agency Federation also expressed opposition. In a statement, they claimed, "The ruling denies the existence of over 2,000 agencies nationwide and ignores the realities of the delivery industry." They argued that if the primary delivery company participates in collective bargaining to negotiate contract terms such as delivery drivers' working hours, work methods, and commission rates, it would infringe upon the agencies' independent management rights and cause the delivery company to violate the Subcontracting Act and the Dispatch Act.

The agency federation lamented, "If contract terms are changed through negotiations with the primary contractor, the contracts between agencies and delivery drivers will become mere pieces of paper," adding, "This could reignite conflicts in the delivery field, which has been evolving through trust and coexistence."

There were also concerns about the ripple effects spreading to industries with primary and subcontractor structures. The Korea Employers Federation criticized, "Although the Supreme Court has clearly stated that primary contractors without explicit or implicit employment contracts are not the bargaining counterpart for subcontractor unions, this ruling undermines the purpose of the single bargaining channel system," and warned, "Industrial sites will suffer from demands for negotiations and strikes by subcontractor unions against primary contractors, as well as lawsuits over actual control."

The Delivery Workers' Union held the '2022 National Delivery Workers' Rally' at Cheonggye Plaza in Seoul on February 21, 2022, urging CJ Logistics to implement the social agreement and accept dialogue. / Photo by Moon Honam munonam@

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