Coupang grants 4 weeks of paid leave, free personal health service to delivery workers
Coupang delivery workers pose with boxes at the company's logistics center in Seoul, Feb. 14. Courtesy of Coupang
By Kim Jae-heun
Coupang has launched its Coupang Care program to provide its delivery drivers with four weeks of paid leave as part of its free personal health services.
This is the first time a logistics company has adopted such a welfare program and Coupang hopes it will establish a new industry standard for delivery workers.
The online retailer has developed Coupang Care with cooperation of physicians, medical advisers and other healthcare experts to help its employees who suffer health problems such as high blood pressure or high blood sugar. They will be able to address their health issues while on the month-long paid leave.
During the leave, Coupang's delivery drivers will receive personalized plans from the health experts regarding diet, exercise and stress management.
Coupang Care is the company's latest initiative in its commitment to creating an exemplary work environment for its employees, whose health and safety are the company's top management priority.
Coupang was the first in the logistics industry to establish a five-day workweek for its drivers, as opposed to the industry standard of six.
The drivers are also given a minimum 15 days of paid leave and full insurance benefits, including workers' compensation, which the majority of drivers in the industry are not receiving.
The reason for this disparity between drivers' working conditions at Coupang versus other major companies is the labor structure of the logistics industry in Korea.
In general, delivery drivers here work as independent contractors, with major logistics and courier companies outsourcing their delivery work to these drivers.
Due to their independent contractor status, most delivery drivers have to provide their own insurance, as well as their own vehicle, gas and healthcare costs, and it is very difficult for such drivers to take time off to focus on their own health.
At Coupang, all delivery workers are employed directly by the company, rather than outsourced or contracted. This employment structure is what enables programs like Coupang Care, in which the employees can take a month of leave without having to worry about the financial implications or losing their job.
Coupang began rolling out its Coupang Care program in late April. In a survey, 82 percent of participants responded that their health and ability to manage it improved after participating in the program, and 87 percent responded that they would recommend the program to their colleagues.
“Our employees' health and safety are our utmost priority, and Coupang Care is just our latest initiative to provide employees the workplace they deserve,” a Coupang official said. “Labor standards for delivery drivers are a very important social issue in Korea, and we remain committed to raising these standards as an industry leader. As we continue rolling out Coupang Care, we will also share our know-how and experience running the program, which we hope will help improve working conditions for all drivers in the Korean logistics industry.”