CJ Logistics, once perceived as a stock market underdog, has been gaining significance recently. (Image courtesy of CJ Logistics)
SEOUL, Jan. 24 (Korea Bizwire) – An appellate court ruled on Wednesday against South Korea’s largest logistics firm, CJ Logistics, in a suit the company filed to reverse a national committee decision striking down CJ’s denial of collective bargaining for a delivery workers’ union.
The courier union under the Korean Confederation of Trade Unions (KCTU), the more militant of the country’s two major umbrella unions, demanded collective bargaining with CJ in 2020 to negotiate better working conditions.
CJ, however, rejected the demand on the grounds that delivery workers were not directly employed by the company but by its subcontractors.
The union then filed a petition against the denial with the National Labor Relations Commission, which eventually determined that CJ’s action constituted “unfair labor practice.”
CJ has since filed an administrative suit to reverse the commission decision, and the Seoul Administrative Court ruled against the logistics firm last year, stating that CJ was practically in a position to control the basic labor conditions for delivery workers.
The Seoul High Court on Wednesday upheld the ruling.
The ruling is seen as a step forward in labor rights, as it recognizes a company’s obligations as an employer for indirectly employed workers if it is effectively in charge of their working conditions.
CJ immediately announced a plan to appeal the ruling, saying it did not properly reflect the reality of the courier service industry.
The union’s leader, Jin Kyung-ho, urged CJ to accept the court decision and engage in collective bargaining with the union.
(Yonhap)
