Rising Tensions Between Courier Unions and Small Businesses
The National Courier Labor Union, part of the Korean Confederation of Trade Unions, has sparked significant controversy after proposing restrictions on early morning deliveries. This move has drawn strong criticism from small business owners, who argue that such measures could jeopardize their survival in an already challenging economic climate.
The Korea Federation of Micro Enterprise released a statement on the 9th, expressing deep concerns about the potential impact of these proposed restrictions. They stated, “Discussions to ban early morning deliveries threaten the survival of small business owners who have barely found a lifeline through online sales amid sluggish domestic demand.” The federation urged the courier union to immediately withdraw this demand, emphasizing the importance of maintaining current delivery practices.
The federation warned that the push to ban early morning deliveries could undermine the government’s efforts to revive the economy. They added, “If implemented, we will demand compensation for damages suffered by small business owners relying on platforms like Coupang that offer early morning delivery services.” This concern highlights the broader implications of the proposal, as it could affect not only individual businesses but also the entire e-commerce ecosystem.
According to the Korean Logistics Society, halting early morning and seven-day-a-week deliveries could lead to a 40% reduction in parcel orders. This would result in a decline in small business sales by 18.3 trillion won, with total economic losses—including those affecting e-commerce companies—reaching 54 trillion won. These figures underscore the potential severity of the situation if the proposal is enacted.
Growth of Early Morning Delivery Market
The early morning delivery market has experienced remarkable growth over the years. It surged from 400 billion won in 2015 to 11.8 trillion won last year. This expansion is largely driven by the demand for time-sensitive items such as fresh produce and groceries. As a result, small businesses have been able to significantly expand their online sales channels, benefiting from the convenience and efficiency of early morning deliveries.
The Korea Federation of Micro Enterprise highlighted that many small business owners now prepare for daily operations by receiving ingredients via early morning deliveries. They emphasized that if this service stops, business owners would have no choice but to drive early in the morning to purchase supplies, exacerbating labor shortages. This scenario could lead to further challenges for small businesses already struggling with limited resources.
Additionally, the federation expressed concerns about the broader impacts on small businesses that depend on early morning deliveries. They pointed out that these businesses have built their operations around this system, and any disruption could have far-reaching consequences.
Criticism of the Proposal
The federation criticized the unreasonable demand to ban early morning deliveries, stating that it could collapse the ecosystem of small businesses and the Korean economy that have grown accustomed to this system. They called for a complete shift in labor policies that unilaterally accept union demands, suggesting that a more balanced approach is necessary to address the concerns of all stakeholders.
Earlier, the Korean Confederation of Trade Unions’ courier union proposed at a meeting of the “Social Dialogue Body for Parcel Delivery” on the 22nd of last month, “Restrict ultra-late-night deliveries from 0:00 a.m. to 5:00 a.m. to guarantee workers’ sleep time and health rights.” While the intention behind this proposal may be to protect workers’ well-being, the potential consequences for small businesses and the broader economy cannot be ignored.
This ongoing debate highlights the complex relationship between labor rights and the needs of small businesses. As both sides continue to navigate their respective interests, finding a solution that balances the rights of workers with the sustainability of small businesses remains a critical challenge.