Coupang Under Pressure as Calls Grow for 'No Parcel Day' Participation amid Worker Rest Disputes | Be Korea-savvy

Coupang Under Pressure as Calls Grow for ‘No Parcel Day’ Participation amid Worker Rest Disputes


Conveyor belts at a logistics facility in Seoul are empty on Aug. 14, 2023, as the industry went on a one-day special holiday. (Yonhap)

Conveyor belts at a logistics facility in Seoul are empty on Aug. 14, 2023, as the industry went on a one-day special holiday. (Yonhap)

SEOUL, Aug. 15 (Korea Bizwire)The Korea Living Logistics Courier Service Association (KLLCSA), a consortium of courier service providers, has appealed to e-commerce retailer Coupang Inc.’s courier subsidiary, Coupang Logistics Service (CLS), urging its participation in the “No Parcel Day” movement.

On August 14, major courier companies in South Korea will refrain from deliveries as part of the “No Parcel Day” holiday initiated in 2020.

These companies have implemented the ‘No Courier Day’ practice since 2020, designating August 13 or 14 as a day off before National Liberation Day to guarantee the rest rights of courier workers.

Nevertheless, online retailers like Coupang, SSG.com, and Market Kurly, utilizing their internal delivery networks, continue operations without a day off.

Similarly, convenience store couriers such as GS25 and CU maintain regular services, leading to conflicts.

Coupang’s delivery drivers not only lack rest on ‘no parcel days’ but also face the threat of dismissal for utilizing their vacation days.

According to a YTN interview with a courier, falling below a 95 percent delivery rate could result in losing their assigned work area, essentially equating to termination due to a lack of available positions.

These couriers, categorized as sole proprietors and special employees contracted through agencies rather than directly with Coupang’s headquarters, do not have access to annual leave, often facing difficulties in taking vacations.

While they could take time off by foregoing daily wages, their options are restricted by the rule that failing to meet quotas might lead to reassignment.

A report indicates that over 40 percent of Coupang’s specially employed couriers either haven’t taken a vacation this year or have no plans to do so in the future.

The KLLCSA alleges that “Coupang CLS is not participating in the ‘No Parcel Day’ campaign at all,” cautioning that the absence of certain companies could undermine the program’s intent and disrupt the courier industry’s competitive landscape.

The association questions the actual number of days Coupang drivers would genuinely take off, highlighting Coupang CLS’s criticism of other couriers lacking time off and the need to hire external drivers at their expense for alternative deliveries.

Parcel delivery workers rally in front of the Korea Integrated Logistics Association building in central Seoul on Aug. 8, 2023, urging Coupang Inc. to participate in the "No Parcel Day" movement. (Yonhap)

Parcel delivery workers rally in front of the Korea Integrated Logistics Association building in central Seoul on Aug. 8, 2023, urging Coupang Inc. to participate in the “No Parcel Day” movement. (Yonhap)

Criticism also extends to Coupang CLS’s “cleansing” (reclaiming delivery zones) system, which the association deems undesirable.

It is noted that while the Life Logistics Service Act mandates agencies to designate consignment areas, Coupang CLS doesn’t consistently assign such areas or broadens the scope, leading to competition among multiple agencies and a cleansing mechanism to reclaim territories if standards aren’t met.

The association contends that Coupang CLS’s supplemental agreement allows for immediate contract termination, contrary to the purpose of the Life Logistics Service Act, urging improvements.

In response to widespread calls for participation, Coupang argues that it’s the only day off crafted by the Korean Confederation of Trade Unions for delivery drivers of larger companies who, unlike Coupang, cannot freely choose their off days.

“Coupang Friends work five days a week and can take up to 130 days off a year, while Coupang CLS can choose rest days at their discretion, even on non-delivery days, without having to arrange for a replacement driver,” a Coupang representative stated.

The association has implored Coupang to cease inciting actions that undermine courier drivers’ right to determine their work and rest periods, causing disruptions for consumers, sellers, and couriers alike.

Coupang stands out from other courier firms as it directly acquires and delivers its products, opting not to partake in the “No Parcel Day” initiative established to safeguard courier workers’ rest rights.

Ashley Song (ashley@koreabizwire.com)

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