Jeong Jong-cheol, head of Coupang Fulfillment Services (CFS), said on the 15th regarding the controversy over changing the criteria for severance pay for day laborers, "We have decided to revert to the original policy to improve the treatment of day workers."
Appearing as a witness at the National Assembly's Climate, Energy, Environment and Labor Committee audit that day, Jeong responded to Rep. Kim Ju-young of the Democratic Party of Korea's criticism of the "severance pay reset system," saying, "Our original intent was to clarify the severance pay criteria, which had been unclear. We regret that, contrary to our intent, many misunderstandings and confusion arose."
Earlier, Coupang CFS revised its work rules twice, in May 2023 and Apr. 2024. Under the previous rules, if a day laborer's continuous service period was at least one year, severance pay was to be provided, and when calculating the continuous service period, periods with an average of fewer than 15 hours per week over four weeks were to be excluded. However, it introduced the so-called "reset rule," under which, even if one had worked for more than a year, if the average weekly working hours over four weeks were fewer than 15, the severance calculation period would be reset from day one.
In this regard, the Bucheon branch of the Ministry of Employment and Labor referred a CFS official to the prosecution with a recommendation to indict, on the grounds that CFS had unjustly withheld day laborers' severance pay by changing its work rules. However, in Apr., prosecutors declined to indict, citing "no charges."
Rep. Kim criticized, "The Ministry of Employment and Labor conducted legal reviews twice last year regarding Coupang's reset rule in its work rules. In sum, the changed work rules that Coupang adopted to avoid paying severance to day laborers are illegal."
According to Supreme Court precedent, even a day laborer is entitled to severance pay if the continuous service period is at least one year and the person worked an average of at least 15 hours per week over four weeks. However, when calculating the continuous service period, periods with an average of fewer than 15 hours per week over four weeks must be excluded.
Jeong said, "As you noted, we will proceed with the procedures for that part as soon as possible and consult on all related matters to ensure there is no harm."
There were also criticisms about improving Coupang's working environment. In response, Jeong said, "We have invested more than 100 billion won in cooling and ventilation facilities and in automation facilities to reduce work intensity." Regarding carrying mobile phones while on duty, he added, "On-site managers are concerned that bringing in and using phones will increase safety accidents such as tripping and bumping, and we are taking that into account," while also saying, "We plan to make a final decision by the end of Dec."
Meanwhile, Prosecutor Moon Ji-seok, who handled the case of withheld severance pay for day laborers at Coupang CFS, attended the audit as a reference witness that day. Moon claimed that, regarding the decision in Apr. to decline indictment on grounds of "no charges," there had been improper directives from a superior during the investigation.
Immediately after Jeong's announcement to revert the severance system that day, Moon shed tears, saying, "I hope that with the reversion, workers, who are socially vulnerable, can promptly receive severance pay of about 2 million won." He added, "If public officials who acted inappropriately during this process are at fault, I hope that everyone, including me, receives a disposition commensurate with their wrongdoing."