South Korea is headed for delivery chaos as a subcontractor of CJ Logistics, the largest transport company in the nation, considers a full-scale walkout in their fight for better working conditions and wages. Customers are refusing to accept products delivered late by the company, while business owners are finding their options for serving their customers, limited by the threats of work stoppage. As the strike prolongs, the economic impact on both the company and its workers will inevitably take its toll. I disagree with the strike of the unionized parcel workers because consumers are suffering from delivery delays, small businesses are seeing their operations and their bottom line being unduly impacted and the working environment between unionized and non-unionized employees is deteriorating.

▲ Non-unionized employees demonstrate against the delivery strike. (Photo from Hankookilbo)

   First, after more than a month into the dispute, consumers and small business owners are the ones suffering due to the indefinite-delivery delays. On February 18, 2022, The Korean Consumer Agency and The Korean National Council of Consumer Organizations performed an analysis of complaints collected from 1372 Consumer Counseling Centers and learned that parcel transport service complaints jumped to 8.5 percent as more and more consumers requested returns or refunds due to delivery delays. The inconvenience caused by the strike is being felt by both consumers and small business owners. An official from the Korean Federation of Micro Enterprises said, "Small business owners, who are already struggling, are being pushed into the reality that their operations are being threatened by customer departures and disruptions in supply and demand."

   Second, the delivery strike by some subcontractors at CJ Logistics is harming small business operations. As delivery services are now taking 1 to 2 weeks to complete instead of its usual 3 to 4 days, small business owners are feeling the brunt of consumer complaints and the number of incoming orders is decreasing. Furthermore, they are obliged to help customers return the delayed goods at their own expense. Despite their best efforts, some businesses are being terrorized by a poor market rating from displeased customers. Businesses, farmers, and fishermen who use CJ Transport to deliver their products, including fresh foods such as local specialties and agricultural and marine products, have suffered a series of financial losses lately. On February 5, the Korean Federation of Micro Enterprise called for an end to the strike saying, "The livelihood of small business owners is being threatened by the delivery chaos created by the strike." According to data by the Korean Federation of Micro Enterprise, local small business owners in Yeongdeungpo, Gyeonggi Province, Icheon, Gimpo, Seongnam, Jeonbuk Gunsan, Daegu, and Ulsan are struggling to minimize the damage caused by the strike by creating and sharing updated non-delivery area lists. According to their records, a total of 621 locations, which includes Eup, Myeon, and Dong are marked as non-delivery areas as a result of the strike.

▲ The delivery strike by some subcontractors at CJ Logistics is entering its second month. (Photo from Yonhap News)

   Lastly, conflicts between subcontracted unionized and non-unionized drivers at CJ Logistics are increasing. On January 23, a group of non-union employees held a rally calling for an end to the strike and urged the government to intervene. They are complaining that their income is at risk, as customers turn to other transport companies during the strike. Workers in some regions argue that the strike should be stopped immediately as unionized drivers are preventing the company from hiring replacement workers. Those who are hired to make up the staff shortages have also reported being assaulted by unionized employees or having their parcels damaged. An association of deliverymen from companies such as CJ Logistics, Hanjin Delivery, and Lotte Delivery is also deteriorating in the face of conflicts between unionized and non-unionized members. For those workers who did not join the union, workplaces are becoming chaotic.

   In the meantime, suspicions have been raised that the union is on a ‘selective strike.’ Drivers who stopped delivering goods for CJ Logistics are still delivering goods for customers who have direct contractual relations with them. On the other hand, non-union members are at the risk of losing their secured customers because they cannot deliver goods into areas covered by the strike.

   The work stoppage by the unionized delivery workers has lost its power and legitimacy by holding consumer goods hostage and it should be put to an end. If there is an unfair compensation structure, it should be handled in a manner that minimizes the impact on innocent parties such as the consumers and small business owners. The striking drivers should do all they can to avoid conflicts that incite violence. The voice of the workers is an essential element in our society, but the actions of the union have resulted in a loss of public support and undoubtedly reduced our society’s opinion of the operation of unions as a voice for the disaffected. The time to end the strike and return to the bargaining table is long overdue.