Court backs delivery workers as it labels CJ Logistics' approach 'unfair'

An appellate court ruled in favor of a delivery workers' union, deeming CJ Logistics' denial of entering collective bargaining with the union "unfair."

Jin Kyung-ho, the head of the Delivery Workers’ Union, left, shares smiles following the appellate court’s decision that upheld the characterization of CJ Logistics‘ refusal to participate in collective talks with delivery workers as “unfair labor practices” in front of the Seoul High Court on Wednesday. [YONHAP]

An appellate court ruled in favor of a delivery workers' union, deeming CJ Logistics' denial of entering collective bargaining with the union "unfair."

The Seoul High Court on Wednesday upheld the lower court's decision, dismissing CJ Logistics' claim that each subcontractor, not the headquarters, is the employer of delivery workers.

The case dates back to March 2020 when the delivery workers' union sought collective bargaining on six labor issues, including a five-day workweek, holidays, vacation policies and a fee increase. CJ Logistics argued delivery workers were not directly employed by the company but by its subcontractors, rejecting the negotiation requests.

Throughout legal proceedings, both initial and appellate courts maintained that CJ Logistics should directly negotiate with delivery drivers.

"As defined by labor union law, the term 'employer' encompasses those with the substantive ability to dominate and decide on workers," the court explained. "However, being recognized as an employer does not automatically impose an obligation to conclude a collective agreement in line with union demands."

CJ Logistics plans to appeal to the Supreme Court, contending that the decision "fails to accurately reflect the reality of the delivery industry."

The logistics industry structure is comprised of three entities: the operator (delivery company), subcontractors in each region and delivery drivers. CJ Logistics argues that the court's decision negates or denies the legitimate presence of subcontractors in the contractual framework.

The upholding of the Supreme Court could provide a foundation for the revival of the now-nullified Yellow Envelope Law. This law aims to revise the Trade Union and Labor Relations Adjustment Act, expanding the range of employers for subcontracted workers to include principal companies. President Yoon Suk Yeol vetoed this proposal at the end of last year, and it was subsequently nullified.

Jin Kyung-ho, the head of the delivery workers' union, hailed Wednesday's ruling as a "historic decision" that legally acknowledges workers' concerns and affirms President Yoon's veto on the Yellow Envelope Law as "contrary to the law."

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