The Ministry of Employment and Labor conducted labor inspections at establishments related to Coupang CLS and discovered four violations of the Industrial Safety and Health Act. The ministry also confirmed 53 other cases of the same law violation, resulting in fines totaling 92 million won and required 34 corrective actions.
This is the first time the government has conducted labor inspections targeting corporations engaged in 24-hour delivery services. Following last year's incidents where workers at Coupang CLS establishments died one after another, there has been a call for an investigation into issues related to industrial safety, health, and working conditions. However, the government concluded that the issue of 'illegal dispatch labor inspection' raised by some is not applicable as it cannot recognize these individuals as workers.
◇The forklift key was left in, and lifts without safety certification were installed
On the 14th, the Ministry of Employment released the results of its 'planned inspection in the field of industrial safety and health' conducted from October to November last year at 82 Coupang CLS related establishments. The establishments targeted for inspection include the Coupang CLS headquarters, Coupang's intermediate logistics centers known as 'sub-hubs (34 establishments)', and the 'delivery camps (12 establishments)' where products are handed over to delivery workers, as well as 'courier service points (35 establishments)' responsible for product delivery.
Coupang CLS is a delivery-specialized subsidiary of Coupang. The cases identified by the government occurred throughout the delivery process after consumers ordered products through the Coupang platform. Choi Tae-ho, the Director of Industrial Accident Prevention Policy at the Ministry of Employment, noted, "A total of 92 inspectors were deployed from 23 regional labor offices, averaging 3.9 visits per establishment, with some establishments being visited as many as 7 times for investigations."
As a result, four violations of the Industrial Safety and Health Act were discovered in 41 of the 82 Coupang CLS related establishments. These include leaving the key in a non-operating forklift, failing to install work platforms on conveyor belts, and not implementing safety measures. Such actions could lead to a penalty of up to five years in prison or fines of up to 50 million won under the Industrial Safety and Health Act.
It was also revealed that lifts that did not have safety certification were used. To install and use a lift, which is one of the mechanical and equipment installations, safety certification must be obtained. Using it without certification could result in a penalty of up to three years in prison or fines of up to 30 million won. A ministry official said, "We will continue investigating the identified violations of the Industrial Safety and Health Act to decide whether to forward the cases to the prosecution."
◇Delayed reporting of industrial accidents, failure to conduct labor training and health examinations
Fines were also heavily imposed for violations related to reporting requirements at Coupang CLS establishments. If a worker suffers an injury or illness requiring three or more days off, the employer must report it to the local labor office within one month. However, it was confirmed that the Coupang CLS delivery camps and sub-hubs reported after a month. Consequently, the Ministry of Employment imposed fines of 21 million won.
It was also revealed that courier service points failed to conduct required trainings and did not provide special health examinations for nighttime workers, both of which are subject to fines. Additionally, there were cases of failure to comply with installation and management standards for rest facilities, lack of sanitation facilities, and not providing safety shoes and helmets.
The Ministry of Employment concluded that allegations regarding illegal dispatch labor inspections related to Coupang CLS delivery drivers could not apply, as these drivers cannot be recognized as workers. Factors considered include that delivery drivers own and operate their vehicles at their own expense, can adjust their working hours at their discretion, and have no fixed base salary. Based on these factors, it was deemed difficult to recognize the drivers as workers under the Labor Standards Act according to Supreme Court criteria.
Choi Tae-ho, the Director of Industrial Accident Prevention Policy, noted, "We will continue to monitor the situation comprehensively to improve working conditions related to Coupang CLS, considering that even cases not violating the law could lead to serious accidents. We will work to identify these improvement measures in advance."