Delivery company DPD has sparked outrage by imposing significant pay cuts on its self-employed drivers while reporting substantial corporate profits and executive pay rises.
Pay cuts threaten livelihoods
The parcel delivery firm informed its self-employed delivery drivers that it was unilaterally reducing their delivery rates, a move that drivers estimate will cost them approximately £6,000 each per year in lost income. Some drivers who take on additional Christmas deliveries could see their earnings reduced by up to £8,000 annually.
This decision comes despite DPD reporting pre-tax profits of nearly £200 million last year. During the same period, the company increased the pay of its highest-paid director by £90,000, bringing their total compensation including bonuses to £1.5 million.
Drivers protest and face consequences
In response to the announced pay cuts, scores of DPD drivers refused to carry out deliveries for three days. The company partially backed down following a meeting with workers' representatives on the first day of action, prompting drivers to return to work.
However, this proved to be only a temporary reprieve, with DPD vowing to implement the rate reductions in the new year. More concerningly, after the meeting, DPD sacked several drivers for having spoken out about the company's treatment of its workforce.
Dean Hawkins, who acted as a spokesperson for the DPD drivers and was among those dismissed for speaking out, expressed his frustration. "So many have lost our income just before Christmas. It makes me sick, given how much money the drivers generate for the company," he said.
Political pressure mounts
Former transport secretary Louise Haigh has strongly criticised DPD's actions and called on the Labour government to support the sacked drivers. "This is pretty despicable behaviour from DPD management. Punishing vulnerable workers for standing up for their agreed terms and conditions should be illegal," she stated.
Haigh added that the "Labour government needs to make sure they are standing on the side of the powerless against such exploitative practices."
Labour peer Peter Hendy has suggested that further legal changes might be necessary to protect workers in similar situations. "The protection against dismissal or detriment for trade union activities only applies to the activities of an independent trade union," he explained, noting that the DPD drivers might not enjoy such status.
Lord Hendy condemned the company's actions, stating: "Penalising workers for making representations against detrimental changes to their terms and conditions is, quite simply, outrageous. It should be unlawful."
The controversy emerges as the Labour government pushes forward with its employment rights bill, though concerns remain about whether the proposed legislation would prevent companies from treating workers in the manner DPD has demonstrated.
A Department for Business and Trade spokesperson commented: "Every company should treat the people who work for them with respect and fulfil their obligations as a responsible employer. We don't comment on individual cases."
DPD has not responded to requests for comment regarding the pay cuts and subsequent dismissals.
