Parcel delivery social dialogue stalled for 3 months; union urges Coupang's return

South Korean parcel delivery workers are calling for the immediate resumption of stalled social dialogue, emphasizing the urgent need to address critical issues impacting their safety and livelihoods. The Parcel Delivery Workers' Union, affiliated with the Korean Confederation of Trade Unions, stated that the "Parcel Social Dialogue" has been on hold for three months since April 7.

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The Parcel Social Dialogue has been on hold for three months.

The union places significant blame on CoupangCLS, Coupang's logistics and delivery subsidiary, for the breakdown in negotiations. According to the union, CoupangCLS participated in the third round of social dialogue initiated last September but subsequently withdrew from the process while attempting to implement interim agreements. This withdrawal has occurred amidst a backdrop of increasing industrial accidents in the sector, with seven delivery workers having died from accidents as of May this year.

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CoupangCLS participated in the third round of social dialogue initiated last September but withdrew from the process while attempting to implement interim agreements.

During the social dialogue, there had been progress toward agreements on partial contributions to employment insurance by CoupangCLS and establishing weekly working hours between 46 and 50 hours. However, CoupangCLS reportedly reneged on verbal agreements and left meetings in April, halting discussions. The union also pointed to Coupang's lobbying efforts in the U.S. and pressure from the U.S. Trade Representative's office regarding regulations on American companies in Korea as hindering productive dialogue.

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The parcel industry's industrial accidents have continued to increase. Seven delivery workers have died from industrial accidents as of May this year.

Kang Min-wook, head of the Coupang branch of the Parcel Delivery Workers' Union, expressed concern that the stalled dialogue exacerbates the risks faced by delivery workers, especially with the upcoming Chuseok holiday peak season. Union Chairman Kim Kwang-seok stressed the heightened risk of overwork-related deaths due to extreme weather and the approaching holiday rush, urging the government to legislate measures to prevent overwork. The Democratic Party has indicated plans to discuss related schedules soon, following the formation of parliamentary standing committees.

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Coupang's institutional investors filed a petition with the U.S. Trade Representative, raising issues about the regulation of U.S. companies in Korea, and proper dialogue is not taking place.