Following Coupang, Major Companies Respond in Turn... Negotiation Channels Open for "Parcel Delivery Union"
CJ, Lotte, and Others Engage in Direct Negotiations
Negotiation Rights with Principal Companies Become a Reality
With the full implementation of the revised Trade Union and Labor Relations Adjustment Act (commonly known as the Yellow Envelope Act), the landscape of labor-management relations in the parcel delivery industry is undergoing rapid change. As the law now provides a legal basis for subcontracted workers to demand direct negotiations with principal contractors, major courier companies are successively responding to requests for direct bargaining with subcontractors.
According to industry sources on March 19, in line with the Yellow Envelope Act, which came into effect on March 10, delivery worker unions have begun demanding direct negotiations with principal contractors such as CJ Logistics, Hanjin, and Lotte Global Logistics. So far, Coupang Logistics Service (CLS), CJ Logistics, and Lotte Global Logistics have agreed to engage in direct negotiations with their subcontractors.
Until now, parcel delivery drivers have negotiated with individual local agencies, with direct communication channels with headquarters or principal contractors effectively blocked. However, following the implementation of the Yellow Envelope Act, companies have begun to participate in direct negotiations in succession, opening the way for such engagement.
Other parcel delivery firms, such as Hanjin and Logen, are reportedly focusing on understanding the situation and reviewing the legal aspects, rather than providing concrete responses. As the law has only just taken effect, these companies appear to be waiting to observe the actions of other firms and the government's detailed guidelines before responding to negotiation requests.
An industry official stated, "As the law has only recently come into effect, we were still conducting thorough internal reviews, but with leading companies responding, the atmosphere seems to be shifting. I believe other companies will also participate in negotiations in due course."
Companies that have not responded to the union's demands may wait for a ruling from relevant bodies such as the Labor Relations Commission. The regional labor commission can take up to 20 days after a case is filed to review and determine whether the principal contractor has a duty to negotiate. If the commission finds that the principal contractor qualifies as an employer, the company must respond to the union's demand for negotiation. In the event of disagreement, the company can appeal to the Central Labor Relations Commission or file an administrative lawsuit.
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Jisoon Park, professor at Korea University Law School, explained, "Even if a company is a principal contractor, it is essential to closely examine whether it has substantial control and exactly what negotiation items the subcontractor union is proposing." He added, "If the company fails to respond to the negotiation request, the matter will proceed through the Labor Relations Commission or the Collective Bargaining Determination Support Committee for a judgment."
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