A major study by the University of Sheffield has found that over a third of self-employed parcel delivery drivers estimate their hourly earnings fall below the National Minimum Wage.
The research, titled Work and Employment in UK Last Mile Parcel Delivery, surveyed 1,413 car and van drivers from two major UK delivery companies who are members of recognised trade unions. The study also included interviews with 47 delivery workers and 38 union officials and representatives.
Pay and unpaid work
While drivers at both companies reported average earnings of £13 an hour, researchers found significant differences between employment types. Self-employed drivers reported a much wider range of earnings. They also described substantial costs including fuel, insurance, vehicle maintenance and mobile phones, alongside successive rate reductions and changes to parcel bandings that further cut earnings.
Unpaid work was far more deeply embedded in the self-employed drivers' pay-per-parcel system. Sorting and loading parcels, waiting at depots, handling failed deliveries and administrative tasks all go without additional pay. More than half (56 per cent) of self-employed drivers said they take no breaks during the working day, compared with 13 per cent of directly employed drivers.
Digital monitoring and pressure
Electronic monitoring was almost universal, affecting 99 per cent of directly employed and 89 per cent of self-employed drivers. Drivers reported that aspects of their work including driving speed, the route taken and the time between deliveries were tracked electronically.
Around two thirds of directly employed drivers (65 per cent) and more than half of self-employed drivers (58 per cent) reported "very high" or "a lot of" pressure to meet delivery targets. Nearly half (47 per cent) of all respondents said they had experienced bullying or harassment at work.
Researchers also report evidence of inadequate sanitation, poor lighting, damaged equipment and blocked fire exits at some depots.
Self-employment preferences
Around two thirds of self-employed drivers surveyed said they valued the flexibility of their working arrangements and would prefer to stay self-employed. However, researchers found that this preference was often conditional. Some drivers questioned whether they were genuinely self-employed given the control exerted over their rounds, rates and performance, while others valued the status only because of the protection offered by their union.
Recommendations
The report, produced by Professor Kirsty Newsome, Dr Şafak Tartanoğlu Bennett and Dr Joyce C. Mamode from the Centre for Decent Work at Sheffield University Management School, makes six recommendations.
These include a special investigation by the Fair Work Agency into working conditions in the sector and compliance with National Minimum Wage legislation, consideration of sector-specific minimum earnings floors with transparent rate-setting, and mandatory minimum health and safety standards for all depots. The researchers also recommend Ofcom regulation to stop competition being won through exploitative labour practices, a clear statutory test of employment status with stronger enforcement against bogus self-employment, and an "Employment Charter for Parcel Delivery Drivers" developed jointly by the unions in the sector.
The report was launched in Parliament on 20 October and was attended by Minister of State for the Future of Work Kate Dearden MP, and chaired by Andy McDonald MP.