The parcel delivery social dialogue body discussing limits on dawn delivery is pushing to expand the scope of regulation. The plan would include not only parcel work performed by trucks with the parcel-only "Bae" license plates, but also parcel work by trucks with the commercial license plates ("A/B/S/J"), commonly called "yongdal."

Sorting work for ordered goods is underway at the PP Center of the E-MART Cheonggyecheon branch in Seoul on the 9th. /Courtesy of Yonhap News

According to the logistics industry on the 17th, the parcel delivery dialogue body recently held a working-level meeting to discuss the "third interim agreement on parcel delivery social dialogue," centered on this plan. It came about two weeks after the Federation of Korean Trade Unions proposed expanding the scope of regulation along with Kurly and Coupang.

The parcel delivery dialogue body also tried to hold meetings on the 27th of last month and the 6th of this month, but they fell through due to opposition from some participating groups over expanding the scope of application, and the meeting was only held on the 11th. Based on that meeting, a draft agreement was prepared, and discussions were held again on the 13th.

The parcel delivery dialogue body is pushing to expand the scope of application to resolve the "blind spot." Since stakeholders are agreeing to limit working hours to guarantee parcel couriers' health, the aim is to ensure that all couriers performing parcel work, regardless of license plate type, are included in the scope of regulation.

Parcel work largely takes two forms. One is where a parcel service operator signs a consignment contract with a courier and couriers deliver using vehicles with "Bae" license plates. The Bae plates are parcel-only plates introduced in 2013, after demand for logistics increased due to the rise of online shopping at a time when issuance of commercial plates was restricted by regulation.

The other is where a freight transport operator entrusts parcel volume to local branches, and the branches deliver through yongdal couriers. Trucks with commercial plates can perform broad for-hire transport services, but since the 2004 amendment to the Trucking Transport Business Act, new issuances have been restricted.

Logistics companies such as CJ Logistics, Coupang Logistics Service, and Kurly Nextmile are both parcel service operators and freight transport operators, so they use both methods. For this reason, if only trucks with Bae plates are included in the agreement as previously discussed, the health rights of couriers with commercial plates could be overlooked.

The parcel delivery dialogue body is currently discussing a plan to reduce parcel couriers' working hours to a maximum of 46–50 hours. It would add a premium to working hours for dawn delivery performed after 10 p.m., and include sorting work in working hours. It is also discussing limiting consecutive working days for dawn delivery couriers to 3–5 days.

The logistics industry also expects that including the working hours of couriers using commercial plates in the restrictions would ease concerns that certain companies could gain an advantage.

If the working-hour limits apply only to couriers with Bae plates, work is likely to flow to couriers with commercial plates. In the case of CJ Logistics and others, many hold commercial plates as comprehensive logistics operators, leading to widespread expectations they would be better positioned than competitors centered on Bae plates such as Coupang and Kurly.

However, although the parcel delivery dialogue body has drafted an agreement including commercial plates and is discussing it, there are differing views. The reasons are that the regulation could become overly broad, and it may be difficult to single out only parcel work from the working hours of couriers with commercial plates.

At an earlier meeting, CJ Logistics said, "If dawn delivery is restricted to include commercial plates, there is a concern it could even cover business-to-business logistics or food delivery," adding, "As this is a parcel delivery dialogue body, wouldn't it be right to first discuss the parcel-only Bae plates?" The Korean Confederation of Trade Unions (KCTU), to which the CJ Logistics parcel union is affiliated, also reportedly expressed concerns about expanding the scope of application.

In addition, since yongdal parcel couriers using commercial plates have not been participating in the parcel delivery dialogue body, a process is needed to incorporate their views. While some couriers using commercial plates are affiliated with CJ Logistics and the Korean Confederation of Trade Unions (KCTU), many are sole proprietors, so the aim is to ensure that the views of couriers not previously part of the dialogue body are also gathered.

Participants in the parcel delivery dialogue body include the Democratic Party of Korea, the Federation of Korean Trade Unions, the Korean Confederation of Trade Unions (KCTU), CJ Logistics, Hanjin, Lotte Global Logistics, Coupang Logistics Service, Kurly Nextmile, the Korea Integrated Logistics Association, and the Korea Living Logistics Courier Service Association.

An official with the parcel delivery dialogue body said, "As this body exists to prevent overwork deaths among parcel couriers, it is a reasonable proposal to include the working hours of couriers with commercial plates in the restrictions," adding, "However, since couriers with commercial plates have not been part of the talks, it appears time will be taken to compile their views."

Meanwhile, the industry expects that if parcel couriers' working hours are limited under the dialogue body's agreement, parcel rates will inevitably rise. The reason is that when the regulation takes effect, couriers' income will inevitably decrease, forcing the government to consider their backlash and discuss ways to make up for the shortfall.

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