“The signing of the collective contract is an important initiative for the company to help protect the rights and interests of truck drivers, which can also further promote the sustainable operation and development of our platform,” Logory Logistics’ executive chairman Feng Lei told local media at the event, which was attended by 121 workers’ representatives, including 70 truck drivers.
The contract, which is expected to benefit the 3.8 million drivers on Logory Logistics’ network, marks the domestic freight transport industry’s first attempt to cover truckers’ rights on a nationwide scale.
It was designed to protect basic labour rights and improve truck drivers’ benefits, with provisions on base freight income, transport safety, consultation and coordination mechanisms, and access to insurance coverage.
That development comes amid long-standing complaints from Chinese truck drivers regarding lengthy working hours, low pay and lack of proper labour safeguards.
According to a 2022 survey of 5,600 truck drivers by the China Federation of Logistics and Purchasing, more than 76 per cent work eight hours or more on average every day. Increased work intensity, according to 72.4 per cent of the survey respondents, has led to a greater incidence of occupational diseases including gastrointestinal problems, cervical spondylosis and hypertension.
Half of those surveyed said they earn less than 10,000 yuan (US$1,381) a month on average. About 64 per cent said they are not satisfied with their income.
The complaints from truck drivers have persisted in spite of guidelines jointly issued in October 2021 by the Ministry of Transportation and 18 other government departments that sought to further protect the rights and interests of truck drivers.
While demand for logistics services on the mainland continues to grow, the number of working truck drivers have decreased. Data from the Ministry of Transportation show that there are currently an estimated 17.3 million truck drivers across the country, a steep decline from about 30 million in 2016.
In February, the ACFTU – the world’s largest trade union with more than 300 million members – said this year’s main goal was to sign up a million more truck drivers to join their labour alliance.
Founded in 2010, Logory Logistics operates one of the country’s largest digital freight transport platforms and has one of the biggest truck driver communities China, according to the firm’s website. The company serves more than 14,400 shippers and records an average monthly transaction volume of over 3 billion yuan via its platform.
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