China’s state trade union and Logory Logistics initiate first collective contract for truck drivers nationwide

The contract is expected to benefit the 3.8 million truck drivers on Logory Logistics’ digital freight-transport network
This marks the domestic freight transport industry’s first attempt to cover truckers’ rights on a nationwide scale

Transport and logistics

Kelly Le

Published: 9:00pm, 3 May 2024

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A first-of-its-kind nationwide contract for truck drivers in mainland China has been completed by Logory Logistics Technology, a Hong Kong-listed digital freight-transport platform operator, years after regulators issued guidelines aimed at protecting the rights and interests of these workers.

The collective contract was initiated under the guidance of the All-China Federation of Trade Unions (ACFTU) – which answers to the Chinese Communist Party and the only legal labour alliance in the country – and signed at a workers’ congress organised by Logory Logistics on May 2 in Hefei, capital of eastern Anhui province, according to a report by financial newspaper Securities Times.

“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.

The nationwide contract for truck drivers in mainland China promises to help protect the rights and interests of these workers. Photo: Shutterstock

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.

Chinese truck drivers have long-standing complaints about lengthy working hours, low pay and lack of proper labour safeguards. Photo: Shutterstock

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.

In recent years, online platforms such as e-commerce providers have shouldered the burden of protecting the basic rights of both gig workers and those in the freight transport sector.

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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