"Coupang Accused of Wage Arrears for Contract Workers in Japan"... Japanese Youth Union Prepares Legal Action

[Financial News] It has been reported that the Youth Community Union in Japan has begun legal action against Coupang over alleged violations of labor standards law, including wage arrears for contract workers at its food delivery service 'Rocket Now' in Japan.
On the 7th, Kukmin Ilbo reported that CP One Japan, Coupang’s Japanese subsidiary operating Rocket Now, received a recommendation for correction from Japanese labor authorities in August last year for violations of the labor standards law. However, according to the Youth Community Union, the company has yet to issue a clear apology or present concrete measures.
According to Weekly Gendai, Coupang was advised to correct multiple violations, including unpaid wages, by the Labour Standards Inspection Office on August 22 last year. The Youth Community Union has been collecting cases of damages since December 23, 2023.
The union is gathering reports from workers who suspect job posting fraud, received lower pay or different job duties than explained by Coupang, or experienced unilateral contract changes resulting in disadvantages. The organization plans to analyze these cases and provide support for claims of unpaid wages and legal assistance in employment disputes.
The Youth Community Union criticized, "The parent company of CP One Japan is Coupang, Inc., which is listed on the New York Stock Exchange (NYSE). It is expected to pay close attention to human rights and labor issues. Nevertheless, it has caused employment problems such as unpaid or delayed wages and bonuses for an estimated 2,000 employees. So far, management has not provided any concrete explanation."
Coupang launched the Rocket Now service in Tokyo in January last year. By promoting zero delivery fees and commissions, it quickly expanded its market share. During this process, suspicions arose that the company recruited thousands of contract workers through misleading job advertisements, dismissed many of them in a short period, and failed to pay wages properly.
y27k@fnnews.com Seo Yoon-kyung Reporter