Over a third of self-employed parcel drivers earn below minimum wage, major study finds

Over a third of self-employed delivery drivers estimate their hourly earnings are below the National Minimum Wage, according to a major new report from the University of Sheffield.

Over a third of self-employed delivery drivers estimate their hourly earnings are below the National Minimum Wage, according to a major new report from the University of Sheffield. The study, which surveyed more than 1,400 parcel delivery drivers from two major UK delivery companies, found they face unpaid work and intense digital monitoring and, for those who are self-employed, unpredictable pay and weaker employment protections.

The report, Work and Employment in UK Last Mile Parcel Delivery, draws on a survey of 1,413 car and van drivers who are members of two recognised trade unions, alongside interviews with 47 delivery workers and 38 union officials and representatives. It compares working conditions at two major parcel delivery companies. One predominantly employs its drivers directly within collective bargaining arrangements, while the other relies mainly on self-employed drivers.

While drivers at both companies reported average earnings of £13 an hour, researchers found this number hides sharp differences. Self-employed drivers reported a much wider range of earnings, with 35 per cent estimating that they earn less than the National Minimum Wage. They also described significant costs, including fuel, insurance, vehicle maintenance and mobile phones, and said that successive rate reductions and changes to parcel bandings, which set the rate paid per parcel, had further cut their earnings.

Unpaid work was evident at both companies, but was far more deeply embedded in the self-employed drivers’ pay-per-parcel system, in which drivers are paid a set amount for each parcel delivered rather than an hourly wage. 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. One self-employed driver told researchers they worked 42 consecutive days between November and December without a day off.

Despite the differences in contract type, the research found strong similarities in drivers’ day-to-day experience. 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, and nearly half (47 per cent) of all respondents said they had experienced bullying or harassment at work. The researchers also report evidence of inadequate sanitation, poor lighting, damaged equipment and blocked fire exits at some depots.

Kirsty Newsome, Professor in Employment Relations at the University of Sheffield, said: “Parcel delivery is part of everyday life for millions of us, but the people doing the work are largely hidden from view. Our research shows just how much contractual status matters. Self-employed drivers carry the costs and risks of the job, with less predictable pay, more unpaid time and far weaker employment protections, while facing the same intense monitoring and pressure as their employed counterparts.

“A sustainable parcel delivery sector cannot be built on low pay, unpaid labour and excessive working time. With the Government preparing to consult on employment status, our findings make a strong case for clearer rules, stronger enforcement and a level playing field where companies compete on the quality of their service, not on how little they pay and protect the people who deliver.”

Many of the self-employed drivers surveyed said they valued the flexibility of their working arrangements, and around two thirds said they would prefer to stay self-employed. However, the 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.

The report makes six recommendations, including:

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.

The research was carried out by Professor Kirsty Newsome, Dr Şafak Tartanoğlu Bennett and Dr Joyce C. Mamode who are members of the Centre for Decent Work at Sheffield University Management School, part of the University of Sheffield.

https://sheffield.ac.uk/news/over-third-self-employed-parcel-drivers-earn-below-minimum-wage-major-study-finds