Confusion is growing in management after the Ministry of Employment and Labor (MOEL) Central Labor Relations Commission recognized the Cargo Truckers Solidarity's bargaining rights with CJ Logistics. The path to bargaining opened because the Cargo Truckers Solidarity, which is an unlawful union, received a delegation from its higher-level organization.
There is concern that if it is confirmed that the "real employer" of truckers operating as sole proprietors is CJ Logistics, industries that use trucks affiliated with the Cargo Truckers Solidarity could be pushed to the brink of a "logistics meltdown" due to bargaining risks.
On the 24th, the Central Labor Relations Commission maintained the first-instance decision and sided with the Cargo Truckers Solidarity in a retrial case related to the announcement confirming the union requesting bargaining that CJ Logistics filed. It said the Cargo Truckers Solidarity received delegated bargaining rights from its higher-level body, the Korean Confederation of Trade Unions (KTCU) Public Transport Workers' Union, so CJ Logistics must enter talks with the Cargo Truckers Solidarity.
◇ Business community: "Cargo Truckers Solidarity only had indirect bargaining recognized… concern about the spread of independent bargaining by unlawful unions"
The business community, including the logistics sector, is wary that this decision will be interpreted as the Cargo Truckers Solidarity having secured independent bargaining rights.
The Cargo Truckers Solidarity is affiliated with the Public Transport Workers' Union, but it has not received a "certificate of establishment report" that the government issues to recognize a formal union. In other words, although it is an unlawful union, the Cargo Truckers Solidarity says that, based on the Central Labor Relations Commission's decision and others, it has been recognized as a union with subjectivity to bargain.
However, the business community believes the Central Labor Relations Commission assessed not the Cargo Truckers Solidarity itself, but the Public Transport Workers' Union's authority to request bargaining and the delegation relationship. In short, only the Cargo Truckers Solidarity's "indirect bargaining" worked; it still is not a formal union.
A logistics industry official said, "If the interpretation that the Cargo Truckers Solidarity's independent bargaining rights were recognized spreads, we could see more cases where a subordinate body without a union establishment report effectively acts as an independent bargaining party based only on authority delegated by its higher-level organization."
◇ Truckers' dependence and exclusivity weaker than delivery couriers… confusion over "employer status" standard
The business community is also increasingly concerned about recognizing bargaining rights for special-type workers like those in the Cargo Truckers Solidarity. Most general truckers in the Cargo Truckers Solidarity are sole proprietors. Many are not exclusively tied to a specific shipper.
They can trade with multiple shippers or choose their own transport loads. There are many cases of using substitute drivers or engaging in other business activities in parallel. This raises debate over whether CJ Logistics should be seen as the "real employer" even for these sole proprietors, whose autonomy is guaranteed in business operations and attendance.
Delivery couriers faced similar controversy in the past, but because they depend heavily on volume from a single company, courier companies are generally recognized as employers. CJ Logistics also does not categorically deny employer status over delivery couriers.
But the logistics industry says truckers are different. An industry official said, "It is hard to view delivery couriers and truckers on the same level in terms of dependence and exclusivity, which are key factors in determining employer status under labor law," adding, "If this decision is used as a basis to recognize prime contractors' employer status over all members of the Cargo Truckers Solidarity, the very criteria for determining employer status under labor law that have been built up could be shaken."
◇ Cement, steel, autos and more in domino effect… concern over "constant bargaining" logistics risks
Whether CJ Logistics and the Cargo Truckers Solidarity negotiate could affect Korea's broader industrial sector. If the Cargo Truckers Solidarity is recognized as a union and enters talks, similar demands will inevitably follow not only for logistics companies using trucks affiliated with the Cargo Truckers Solidarity but also for various large corporations. Members of the Cargo Truckers Solidarity are spread across industrial logistics, including container transport, cement, steel, autos, and construction materials.
With the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, already raising the possibility that bargaining counterparts could expand infinitely, the Cargo Truckers Solidarity case could amplify that further. The risk of a logistics meltdown would also inevitably grow. In April, the Cargo Truckers Solidarity blockaded CU convenience stores' logistics centers and went on strike, halting supplies to CU in the Seoul metropolitan area. The CU Franchisee Council estimated property damage of 10.28 billion won from the strike.
A logistics industry official noted, "The formal delegation of bargaining rights could become a common route for bypassing judgments on a union's legal status," and said, "If bargaining demands are recognized without sufficient legal review of employer status, prime corporations will inevitably be exposed to a constant burden of negotiations."
CJ Logistics plans to decide follow-up measures after reviewing the Central Labor Relations Commission's written decision. The written decision, which contains the specific grounds for the ruling, will be delivered within 30 days. A corporation that receives the Central Labor Relations Commission's written decision can file an administrative suit within 15 days.