{"id":2201523,"date":"2023-06-28T18:26:07","date_gmt":"2023-06-28T09:26:07","guid":{"rendered":"https:\/\/koreapro.org\/?p=2201523"},"modified":"2023-06-28T18:26:07","modified_gmt":"2023-06-28T09:26:07","slug":"fast-food-slow-progress-how-south-korean-labor-laws-fail-delivery-workers","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/06\/fast-food-slow-progress-how-south-korean-labor-laws-fail-delivery-workers\/","title":{"rendered":"Fast food, slow progress: How South Korean labor laws fail delivery workers"},"content":{"rendered":"

Every day in South Korea, drivers on mopeds zip past pedestrians and weave between cars in a race to deliver fried chicken, spicy rice cakes and an assortment of other foods to customers in cities big and small. And like in other countries, the app-based industry grew rapidly in the ROK during the pandemic, with the number of drivers doubling since 2019.<\/span><\/p>\n

But with the flourishing of the industry has come concerns about labor protections for the hundreds of thousands of delivery drivers now working in the industry. South Korean law classifies them as \u201cnon-standard workers\u201d or \u201cspecial employment status workers,\u201d leaving them vulnerable to exploitation and preventing them from receiving benefits like minimum wage and severance pay.<\/span><\/p>\n

While global trends are shifting toward the protection of app-based workers, South Korea appears to be lagging behind. And experts say the change brought on by digitalization and platform-based services requires a reexamination of existing labor laws.<\/span><\/p>\n

LEGAL BARRIER<\/b><\/p>\n

There are <\/span>increasing calls<\/span><\/a> in South Korea among non-salaried app-based food delivery riders to either raise delivery fees or permit them to be eligible for the minimum wage. This growing discontent among workers in the rapidly evolving gig economy comes amid a significant shift in labor structures, notably within Korean app-based delivery platforms.<\/span><\/p>\n

\u201cThe reality is that we have no legal recourse to protest our delivery fees, even if they\u2019ve been reduced or remained stagnant for a decade,\u201d Woo Lam, an advocate for the rights of these platform workers, told <\/span>Korea Pro<\/span><\/i>. \u201cThere are simply no established standards for delivery fees.\u201d<\/span><\/p>\n

\u201cWe are advocating for the introduction of a minimum wage system for platform workers in South Korea, akin to the one recently established in New York City,\u201d added Woo, who serves as the policy director of Rider Union.<\/span><\/p>\n

New York City moved to <\/span>implement<\/span><\/a> a higher minimum wage for app-based workers starting July 12, raising their hourly wage from $11 to $17.96.<\/span><\/p>\n

However, it would be challenging for many South Korean food delivery workers to see the kind of change they advocate. As it stands, app-based and non-salaried delivery workers are <\/span>not legally mandated<\/span><\/a> to receive the minimum wage since the law classifies third-party delivery agents as self-employed workers.<\/span><\/p>\n

\"\"

Rider Union, an advocacy group for app-based delivery workers, demands improved rights of app-based delivery workers, May 10, 2023 | Image: Rider Union<\/a><\/em><\/p><\/div>\n

A RAW DEAL<\/b><\/p>\n

Spurred by the COVID-19 pandemic, the number of app-based delivery workers in South Korea has almost doubled in the past three years. Around 237,188 individuals currently comprise this workforce, a significant jump from the 119,626 reported in 2019, according to a 2022 <\/span>survey<\/span><\/a> conducted by South Korea\u2019s Ministry of Land, Infrastructure and Transport (MOLIT).<\/span><\/p>\n

The advent of app-based platforms has substantially altered the labor structure within this sector.\u00a0<\/span><\/p>\n

\u201cThe traditional food delivery market, operating on a model of direct delivery from restaurants to customers by salaried delivery riders, has evolved with the rise of platform-based delivery apps,\u201d a 2022 Korea Labor Institute (KLI) <\/span>study<\/span><\/a> asserts.<\/span><\/p>\n

Business owners have embraced this new platform en masse, experiencing an increase in sales and a reduction in hiring costs by outsourcing delivery services, according to KLI\u2019s research.<\/span><\/p>\n

\u201cThe majority of self-employed business owners experienced increased sales after adopting delivery apps. Among them, the proportion of self-employed business owners in Seoul reporting increased income was the highest, at 80.9%,\u201d the study revealed.<\/span><\/p>\n

However, this arrangement, although advantageous for businesses, has resulted in most delivery riders <\/span>signing<\/span><\/a> sub-contractual agreements as non-salaried workers. Consequently, more than 200,000 delivery riders are ineligible for most employee benefits and are only <\/span>partially covered<\/span><\/a> by their pension and health insurance policies.\u00a0<\/span><\/p>\n

\u201cThe legal ambiguity surrounding the status of platform workers remains a significant concern, given that it enables both corporate entities and the government to avoid undertaking substantial reforms,\u201d Woo of Rider Union told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

\"\"

Comparing insurance coverage between app-based delivery workers and full-time employees | Source: Korean Law Information Center<\/a><\/em><\/p><\/div>\n

UNEQUAL PAY FOR EQUAL WORK<\/b><\/p>\n

At present, app-based delivery workers fall under the classification of \u201cspecial employment status workers\u201d or \u201cnon-standard workers\u201d as per the <\/span>Labor Standards Act<\/span><\/a>. This category pertains to individuals who do not have full-time, permanent employment.<\/span><\/p>\n

The <\/span>distinguishing characteristics<\/span><\/a> of app-based delivery work, such as flexible working hours and locations and variable income, set these workers apart from the standard worker classification.<\/span><\/p>\n

South Korea\u2019s Supreme Court has <\/span>acknowledged<\/span><\/a> the need to safeguard non-salaried, app-based delivery workers from occupational hazards and accidents, even if they are not recognized as standard laborers under the Labor Standards Act.<\/span><\/p>\n

These non-salaried delivery workers are now conditionally entitled to the country\u2019s \u201cFour Major Insurance Policies\u201d \u2014 National Pension, National Health Insurance, Employment Insurance and Workers\u2019 Compensation Insurance \u2014 though they remain ineligible for employee benefits and severance pay.<\/span><\/p>\n

Experts argue that further scrutiny and structural reform are necessary. Research <\/span>indicates<\/span><\/a> that the existing structure assigns employment benefits and necessary safeguards based on an individual\u2019s job classification. This setup may categorize app-based delivery workers as \u201cspecial employment status workers\u201d rather than recognizing them as \u201claborers,\u201d putting them at significant risk.<\/span><\/p>\n

\u201cThere have been studies examining whether platform delivery workers could be deemed employees under current laws because the work they do closely resembles what salaried delivery workers do,\u201d Kim Young-ah, a researcher at the Korea Labor Institute told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

\"\"

A phone screen showing a food delivery app, May 29, 2016 | Image: HS You via Flickr<\/a> (CC BY-ND 2.0<\/a>)<\/p><\/div>\n

GLOBAL MOVEMENT<\/b><\/p>\n

Around the globe, various nations have taken steps to ensure minimum wage standards and protection provisions for their non-salaried food delivery workers, mirroring New York\u2019s recent <\/span>commitment<\/span><\/a> to set a minimum wage for platform delivery workers.<\/span><\/p>\n

For instance, the U.K.\u2019s <\/span>subcontracting system<\/span><\/a> allows businesses to delegate specific tasks or projects to third-party agents, a system akin to South Korea\u2019s food delivery framework. Despite slight variations in entitlements compared to directly employed workers, subcontracted workers in the U.K. are still guaranteed minimum wage and safety standards under various labor laws.<\/span><\/p>\n

Canada made strides in 2022 with the enactment of the <\/span>Digital Platform Workers\u2019 Rights Act<\/span><\/a>, extending protections to digital platform workers, including food delivery personnel. This legislation aims to ensure at least a minimum wage payment for these workers.<\/span><\/p>\n

The international trend toward safeguarding app-based workers is clear, and unless it addresses its own labor issues, South Korea risks falling further behind.<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Culture & Society<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

Every day in South Korea, drivers on mopeds zip past pedestrians and weave between cars in a race to deliver fried chicken, spicy rice cakes and an assortment of other foods to customers in cities big and small. 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