[Exclusive] In wake of SSG.COM's parcel service downsizing, over 20 deliverymen face contract terminations

By Park Gyu Jun

Shinsegae Group’s SSG.COM was recently found to have notified dozens of its delivery drivers of contract terminations.

Amid the accumulating losses, it has tried to reduce costs for regions with decreased online orders. However, this is the first time for the company to terminate contracts with such a large number of delivery drivers.

The number of delivery drivers facing contract terminations next month is around 20. They have taken charge of “SSG Delivery,” the e-commerce firm’s faster parcel service.

The contract terminations came as SSG.COM recently told a freight company entrusted with its parcel service that it will terminate their contract in late December.

SSG.COM signed a contract with the freight company which signs contracts with delivery drivers.

In the aftermath of the latest shutdown of three Emart Picking & Packaging (PP) Centers and two Traders PP Centers, some 20 delivery drivers working for the centers were forced to terminate their contracts. It has been unprecedented for SSG.COM to terminate its contracts with such a large number of delivery drivers.
 

“As SSG.COM said it would increase its delivery vehicles, I started working from March, but my contract will be terminated just nine months after I began to work,” said a delivery driver working at Emart Sacheon branch’s PP center. “I thought I would work at the neighboring Jinju PP Center that will merge with my center. I never expected a contract termination.”

The company explained that its decision was made to boost profits by streamlining its logistics.

By closing 18 small- and medium-sized PP Centers at Emart branches receiving fewer online orders, SSG.COM decided to merge the centers with their neighboring PP Centers.

Delivery drivers just expected their coverages to be broadened after the mergers. However, they were eventually informed of contract terminations.

In addition, the mergers of the PP centers have caused inconvenience to consumers.

Emart Yeongcheon branch in North Gyeongsang Province quit its SSG Delivery. The fast delivery service has also not been available at some Traders branches in Seoul.

“As far as I know, the freight company entrusted with our parcel service has tended to renew its contracts with delivery drivers every year,” an SSG.COM official said. “Through the freight company, we notified the delivery drivers of contract terminations around two and a half months before their contracts expire. We have also listened to their opinions, so that they can continue their works in different regions.”

*This was translated from the article originally written in Korean. For more accurate information, please refer to the original version by using the link below. In case of discrepancies between the two versions, the Korean version shall prevail.

https://n.news.naver.com/article/374/0000310056

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