Coupang to join major business lobby amid feud with umbrella union

Coupang's delivery vehicles are parked at a parking lot in Seoul on Thursday. Yonhap

Coupang is set to become a member of a pro-business lobby group to counteract escalating labor risks posed by one of the nation’s main umbrella unions, according to industry officials, Monday.

The Nasdaq-listed e-commerce firm submitted its intention to join the Korea Enterprises Federation (KEF). The lobby will accept it as its new member during its upcoming board meeting slated for Wednesday.

Coupang’s decision is widely seen as part of its gesture to defend itself against criticism from the militant Korean Confederation of Trade Unions (KCTU) and pro-labor groups after Coupang Fulfillment Service (CFS), a logistics affiliate of Coupang, was mired in a rumor that it wrote up a “blacklist” of retired employees, so they cannot be hired again. Those on the list are said to have shown insincere and unethical behaviors at the workplace.

The company is also facing discord with the umbrella union’s affiliated parcel union, which argues that dozens of its members are at risk of being fired due to Coupang’s refusal of a contract renewal.

Coupang stepped up its criticism of the union, saying it has been spreading false information by contacting and colluding with the firm’s employees.

“The KCTU has colluded with our employees to spill our confidential information and manipulate documents for their own political purposes,” a spokesperson at Coupang’s logistics arm said.

The exterior of the Korea Enterprises Federation's headquarters in Seoul / Yonhap

The official went on to say that the company is “responsible” for protecting the rights of hundreds of thousands of its employees at its workplaces against those who commit crimes — such as sexual harassment, violence and theft.

“The union and some media outlets have long argued that the document on human resource evaluation is illegal, but a judicial authority ruled this does not go against the nation’s labor standards act,” the official said.

A group of 10 companies — including Coupang — are expecting to join the KEF after its planned board meeting.

An official from a Korean conglomerate said Coupang’s decision shows its intention to build tighter relationships with the pro-business lobby amid ever-growing labor risks.

“Coupang will team up with the KEF for the effective management of such labor-related risks,” the official said.