"Coupang reducing wages by 1 million won even before the end of the contract period is driving Coupang delivery workers to death"

Coupang Logistics Services (Coupang CLS), a logistics services subsidiary of Coupang, has initiated an adjustment in the delivery fees paid to its agencies. Coupang delivery workers claim that "unilateral fee cuts are driving workers to death" and that these are "oppressive actions by the headquarters."

National Parcel Delivery Workers' Union of the Korean Federation of Service Workers' Union held a press conference on December 7th in front of Coupang Logistics Services headquarters, condemning Coupang's oppressive actions such as cutting wages by 1 million won.

According to the union, Coupang has proposed fee reductions ranging from 100 to 250 won per package to 400 agencies nationwide, set to take effect next year.

Han Seon-beom, the policy director of the Parcel Delivery Workers' Union stated, "If the headquarters unilaterally changes key contractual terms such as fees during the contract period, workers have no way to respond and are forced into such situations. Since Coupang expanded its business, it has repeatedly engaged in such oppressive behavior every year under the guise of rate negotiations, continuously reducing fees."

Jin Kyung-ho, the chairman of the Parcel Delivery Workers' Union emphasized, "Coupang intimidates powerless agencies and workers, annually cutting fees while earning billions in additional profits. They blatantly cut wages despite standard contracts explicitly prohibiting wage cuts within the contract period."

He also criticized, "Coupang delivery workers affected by fee cuts are in a position where they cannot voice their opinions. The harsh reality of Coupang is that the right of collective bargaining and collective action, two of the three constitutionally guaranteed labor rights, are being violated."

Kim Gwang-chang, the Secretary General of the Korean Federation of Service Workers' Union, said, "Coupang seems determined to secure more low-rate deliveries, disregarding whether workers live or die. Coupang's unilateral fee reductions for delivery workers are tantamount to pushing our workers toward death."

He added, "Despite Coupang's rampant actions, the government under Yoon Suk Yeol refused the amendment of the labor law supported by 77.4% of the nation. We cannot simply overlook Coupang's absurd dominance while many delivery workers and agencies are deeply troubled."

Kang Min-wook, the Chairman of the Parcel Delivery Workers' Union's Coupang branch preparatory co㎜ittee, argued, "If the proposed fee reduction is implemented, monthly income will decrease by as much as 1 million won for those delivering 7000 products per month. During this era of high inflation, high interest rates, and soaring oil prices, it is incomprehensible to cut fees instead of raising them."

He further stated, "Coupang delivery workers already endure extremely intense and long hours of labor under the Rocket Delivery system, performing night deliveries that no other delivery service provides, yet they work in constant anxiety due to uncertainties under the cleansing system."

The "Cleansing system" refers to the operational guideline at Coupang's CLS headquarters, where if a specific area fails to achieve the predetermined performance rate, notification of area withdrawal is sent to the affiliated agencies under the outsourcing contract.

Coupang explained to Safetimes regarding the press conference that "Fees for each route are determined in consultation with the agencies, considering factors like apartment layouts and elevator ratios. While fees have increased for routes with relatively low preference due to their characteristics, the union is distorting the facts."

The Coupang official added, "CLS workers enjoy higher incomes compared to other delivery companies, benefiting from a steady volume of deliveries. We anticipate next year's income to surpass this year's."

Furthermore, he clarified, "CLS mainly deals with lightweight products, often involving multiple items ordered per household, with a fee per item delivered. Due to high orders and streamlined delivery routes, the income is relatively high, making it favorable for delivery workers."