New analysis calls for action on unfair treatment in parcel delivery jobs

Postal

A new report from the University of Sheffield’s Centre for Decent Work has revealed the enormous disparities in contractual status, pay and terms and conditions among workers across the parcel delivery sector. ‘Work and Employment in Last Mile Parcel Delivery’ compares working conditions between two major parcel delivery companies operating with different employment models and provides unique insight into how contractual status shapes work and employment conditions for parcel delivery workers.

The analysis considers company A which predominantly employs drivers directly within established collective bargaining arrangements and company B which relies primarily on self-employed drivers. Workers in company B reported significant variations in wages and 35% estimate their hourly earnings are below the national minimum wage. Predictability of pay was also highly variable with 93% of Company A drivers reported that their weekly pay was always or usually predictable, compared with only 35% of Company B drivers.

Key recommendations include:

  • the Fair Work Agency should carry out a special investigation into working conditions in the parcel delivery sector
  • minimum health and safety standards should be mandated
  • The government and Ofcom should take strategically intervene

Working-time arrangements were another major differential between the two companies with most company A drivers working a conventional five-day week, whereas 80% of company B drivers reported working six days a week.

Commenting on the new report ‘Work and Employment in UK Last Mile Parcel Delivery’ from the University of Sheffield University’s Communication Workers Union (CWU) General Secretary Dave Ward said:

“Bogus self-employment is a scourge for workers in the parcels and logistics sector.

“From worse pay and conditions to less control over working hours, these workers face huge disadvantages in their lives from legal loopholes that help multinational corporations avoid paying their fair share to workers and the government.

“The report is right to highlight these issues, and its findings should assist the efforts of trade unions and the Labour government to crack down on bogus self-employment and put an end to the race to the bottom in the workplace.”

 

Download report