[GLOBAL ECONOMIC TIMES] CJ Logistics is engaged in a tense battle with couriers over the introduction of 7-day delivery a week next year. The two sides are showing differences in their positions on several issues, including the five-day workweek system and additional fees for deliveries to other regions. Attention is focused on whether CJ Logistics will reach an agreement within the year and begin delivery 7 days a week next year.
According to the industry on the 28th, the CJ Logistics Delivery Agency Association and the National Courier Workers' Union plan to hold the fourth round of intensive negotiations on the 11th. The two sides held three meetings in October alone to confirm specific implementation plans and requirements.
CJ Logistics' implementation plan was revealed at the third intensive negotiation held on the 22nd. Starting January 1 next year, 85% of the total volume will be converted to delivery 7 days a week. It is a delivery system 363 days a year, excluding Lunar New Year and Chuseok. For areas outside of direct lines and townships, the plan is to proceed after reviewing the progress for more than six months.
In addition, CJ Logistics announced that it would promote a five-day workweek system for a soft landing. Four drivers form one group, based on a five-day work week, with rotating shifts on Sundays and Mondays. Drivers who come to work on Sunday or Monday are responsible for all deliveries in the same group of four.
The issue is the additional fee. Previously, the courier union requested an additional 50% commission be paid for holiday deliveries and deliveries to other areas. Assuming that the basic delivery fee is 800 won per item, the price is 1,200 won per item. The logic is that additional allowances are needed as the working hours and intensity rapidly increase when delivering to the remaining three people in the same group.
The difference between the two sides' positions on additional fees is clear. CJ Logistics proposed a plan to introduce a 150% holiday delivery fee early next year, but reduce it by 10% each quarter to guarantee a 125% level at the end of the year. It has been confirmed that there is no ability to pay additional fees for delivery to other areas.
The industry is paying attention to the results of CJ Logistics negotiations. The analysis is that considerable pain is inevitable as CJ Logistics has to change the 6-day delivery/6-day workweek system that it has maintained for the past 31 years. Delivery days are increasing, but individual driver working days are decreasing. Some say that it is impossible to change the delivery system on its own without outsourcing.
On the other hand, there are also observations that if the industry's only 3rd party logistics (3PL) complete delivery system is established 7 days a week, the impact on competitors could be significant. Competitors such as Hanjin and Lotte Global Logistics are offering various specialized logistics services to prevent volume loss. In the case of Hanjin, following Naver Shopping and direct purchase from the United States, Chinese e-commerce (C-commerce) shipments have also been delivered to the metropolitan area on holidays since last August.
An official in the courier industry said, “If we succeed in converting to 7-day delivery by establishing a flexible operating system, CJ Logistics’ position will be strengthened.” He added, “The key is how boldly we will invest to persuade drivers.”
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