Feb 9 β€’ 11:33 UTC πŸ‡°πŸ‡· Korea Hankyoreh (KR)

[Exclusive] Coupang to Bear Social Insurance Fees for Delivery Drivers

Coupang's logistics subsidiary has agreed to cover the social insurance fees for delivery drivers, changing its previous stance.

Coupang's logistics subsidiary, Coupang Logistics Service (CLS), has announced it will take on the burden of social insurance fees for delivery drivers. This decision comes after protracted negotiations in which CLS had consistently rejected taking responsibility for these costs until now. The change in position marks a significant shift for Coupang, which had previously resisted any compliance with social agreements made in 2021. Following a recent social dialogue, CLS agreed to shoulder these costs as part of a broader agreement involving cost-sharing among stakeholders, which might include surcharges on delivery fees to offset this added expense.

Despite complaints about fairness, CLS, until this point, had argued that workers should share the burden of industrial accident and employment insurance fees equally with agents. However, other delivery companies like CJ Logistics have already been absorbing these costs for their drivers as part of broader social agreements. With the recent changes in the dialogue around cost-sharing and financial support for insurance premiums, CLS's shift allows it to align more closely with competitors and may also improve conditions for its workers. However, additional costs could ultimately pass onto the drivers, who may see delivery fees rise as a result of these policy changes.

Going forward, the delivery industry plans to revisit the discussions about cost-sharing, particularly after the upcoming Lunar New Year holiday. The Democratic Party is aiming to reach consensus on reducing delivery drivers' working hours while using that agreement as a foundation for further negotiations on financial responsibilities. The central feature of the proposed interim agreements is to restrict night delivery drivers' working hours to eight hours a day and no more than 46 hours per week, signaling a potential shift towards more secured labor practices in the delivery sector.

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