Delivery workers' strike hits eBay Korea, sparing Coupang

Seen above is an empty logistics center in Seoul on June 7, after the local delivery worker union went on strike that same day. Korea Times photo by Koh Young-kwon

By Kim Jae-heun

A recent strike by unionized delivery worker to improve working conditions is putting pressure on eBay Korea and 11st, both of which outsource their deliveries. On the other hand, e-commerce firms like Coupang and SSG.com, which operate their own logistics centers or hire delivery drivers directly, have avoided being affected.

The labor union conducted a walkout June 7 at some of the workplaces where it has the right to strike. At facilities where it doesn't have the right to strike, delivery workers delayed their start times by two hours, starting work at 11 a.m.

Delivery workers are requesting logistics firms to take their parcel-sorting jobs, which they say is the cause of recent driver deaths due to overwork.

Meanwhile, the union walkout delayed delivery services for eBay Korea and 11st from minimum two days to maximum five days.

Unlike Coupang and SSG.com, eBay Korea and 11st only run open market platforms and merchants are responsible for sending their sold products to customers. Most often, sellers use local firms like CJ Logistics, Hanjin Transportation and Logen for their delivery services.

eBay Korea posted a notice last Thursday about the possibility of delivery delays of up to five days. Despite the announcement, customers have been complaining about the delays.

Some customers did not receive their orders for over a week, or got their parcels returned a day after sellers sent them.

11st is in the same situation as eBay Korea, and it made an online announcement asking for customers understanding regarding the delays.

The strike does not affect Coupang, as it hires its delivery drivers directly. Coupang provides car insurance, vehicle and other maintenance expenses to ensure a safe working environment for its delivery workers. As of last July, Coupang had hired over 10,000 drivers.

Shinsegae's online retailer, SSG.com, has employed separate workers to take care of the job of sorting parcels at its logistic centers. At SSG.com's NE.O distribution center, it implemented an automated system to classify customers by their addresses, which reduces delivery drivers' work at other logistic firms.

“The delivery worker union's strike does not affect our overnight delivery service. Our drivers are not members of the labor union,” an SSG.com official said.

The current strike is being participated in by only 10 percent of the delivery workers across the country, so it is not likely to have a huge impact.

“Nonetheless, customers are already making complaints, as online shopping has become a huge part of our lives,” an industry source said.