[NEWS IN FOCUS] Coupang and employees clash over spate of worker deaths

Industry

Published: 17 Oct. 2023, 19:14 Updated: 17 Oct. 2023, 19:56

[NEWS IN FOCUS] Coupang and employees clash over spate of worker deaths

Employees working at Coupang logistics' center [JOONGANG PHOTO]

A rift between e-commerce giant Coupang and its gig workers is deepening in the wake of a series of deaths from apparent overwork while on duty.

The latest case involves the death of a 60-year-old subcontracted delivery worker for Coupang who was on an early morning delivery last week.

Thirteen delivery workers at Coupang have lost lives while working over the past four years, according to Taekbae Union, a labor group representing delivery drivers here.

The labor union argues that it resulted from overwork due to Coupang's demanding work instructions, but Coupang and the police contend that it was caused by an underlying illness.

The controversy is also entangled with the contrasting view on the treatment of gig workers who are often hired by contractors or subcontractors of the so-called "super apps" like Coupang. Those workers believe their working conditions include long work hours and should be improved, while the platforms draw a line between their employees and gig workers in terms of treatment.

Coupang, which secured its position as the top retail leader with the largest revenue in the first half of the year, has been bolstering its market dominance with its "Rocket Delivery" service, an early morning delivery option. However, the death of a delivery worker for Coupang involved in this service has sparked controversy, centering on questions of corporate ethics and social responsibility.

Tragic death sparking tension

A 60-year-old delivery worker surnamed Park was found collapsed in a villa's hallway in Gunpo, Gyeonggi, at approximately 4:40 a.m. last Friday. Park had been delivering goods throughout the preceding evening from 8 p.m. and his shift was supposed to end at 7 a.m. that day. Three Coupang delivery boxes were discovered near the scene. He was pronounced dead upon arrival at the hospital.

Two days after the death, on Sunday, authorities received initial autopsy results from the National Forensic Service, which revealed that Park's heart was significantly enlarged, weighing 800 grams, far beyond the normal 300-gram range. The evidence suggested that his death was not a result of short-term intensive labor but rather a condition related to his heart health, saying he was suffering from myocardial infarction. The delivery union raised concerns, alleging that a year of early morning deliveries may have exacerbated Park's health issues, pointing to cardiac hypertrophy due to overwork.

Taekbae Union, which is under the Korean Confederation of Trade Unions (KCTU), held a press conference on Monday, strongly asserting that Park's death is a "clear-cut case of overwork."

"The deceased's death is believed to be caused by cardiac infarction, which is a common type of overwork-related fatality," said Jin Kyeong-ho, head of the union. "Taking into account the fact that the deceased had an average weekly working time of 55 hours, which increases to 71.5 hours when a 30 percent adjustment is applied [for nighttime work] as per the occupational injury standards, it can be definitively categorized as a death due to overwork."

The union called on government agencies to investigate Coupang's delivery system and urged the parliamentary audit to summon Coupang's CEO as a witness.

"Not our employee"

In a swift response, Coupang issued a statement, accusing the delivery union of spreading false information for political purposes.

"Despite the National Forensic Service's initial assessment attributing the death to cardiac hypertrophy and the forthcoming police investigation conclusion, the delivery union is maliciously exploiting the deceased's death," Coupang said in a statement released Monday, and warning of "strong legal action" in return.

Coupang asserted that the deceased delivery worker was not a Coupang employee but an "independent business owner affiliated with subcontractor company in Gunpo" through a news release on Friday.

According to Coupang, Park had a contractual arrangement with Coupang's logistics subsidiary, Coupang Logistics Service (CLS), through agents, of which Coupang calls a "Quick Flexer." This placed him in the category of an individual business owner, thereby not affording him the same labor law protections as regular employees.

Coupang argued that Park's actual average weekly working hours were approximately 52 hours, which they claim falls within the normal range.

A delivery worker sorts parcels at the Seoul Southeast Logistics Center. [YONHAP]

The shadows of fast Rocket Delivery

Coupang's acclaimed "Rocket Delivery" service, accessible through a monthly subscription fee of approximately 5,000 won ($3.7), has been particularly popular, especially among housewives. The innovative offering, known for delivering ordered items to customers' doorsteps by the following morning at 7 a.m., has played a pivotal role in Coupang's recent surge in success and profitability.

The controversial "cleansing" system employed by Coupang, which allows them to reclaim delivery zones if delivery workers fail to meet performance targets, has also come under scrutiny. To workers, this system essentially equates to being dismissed from delivery tasks.

The issue of excessive overwork is not unique to Coupang alone but extends throughout the entire delivery industry in Korea. Tragic incidents, such as the death of 27-year-old Jang Deok-joon, a Coupang logistics center employee due to a heart attack following night work, as well as 48-year-old Kim Won-jong, an employee working for CJ Logistics, Korea's largest courier company, who lost his life after experiencing chest pain while on a delivery, have brought this matter into the spotlight.

In 2020, a suspected 10 or more delivery worker deaths, possibly attributed to overwork, were reported due to the challenging working conditions, including a 20 percent surge in parcel volumes driven by the Covid-19 pandemic. In response, a social agreement was established to prevent overwork-related fatalities — encompassing measures such as limiting late-night deliveries after 9 p.m. to alleviate the burden on delivery workers. Yet Coupang has been out from participating in the social agreement, citing their status as not being a delivery company.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]