![]() We get lots of positive feedback on it.” Understanding the workforce “Our SMEs are looking for a partner that aligns with them from an ethical employment perspective. “If you are paying someone just 50p to deliver a package, you're not going to have any kind of quality,” he explains. Thomas is convinced this attitude also directly benefits customers. That means fully employing drivers and paying them above the living wage.Īll drivers are given access to health insurance and life insurance that is paid for by the company, “just like it is for office-based employees”, he says. “But for the people involved, it's hard to make it a long-term career.” We wanted to start the right way. “It works in very certain specific situations, like for students,” he allows. Rejecting this premise, Thomas tells Startups that Packfleet has made a conscious effort to move away from the gig economy mindset. That means they aren’t given access to standards like holiday pay, National Minimum Wage, and even an employment contract. Thomas points to Amazon’s warehouse closures as proof.įor workers to be told they are losing their jobs, he says, “when they have just spent all of Christmas doing crazy hours and crazy amounts of work – that's where it really starts to hit home, how disconnected are.” Bye-bye gig economyĬurrently, many of Amazon’s drivers are classed as self-employed. Large-scale, profit-driven businesses, in particular, have struggled to understand their workforce or the importance of a positive company culture. In the current poor economy, employee satisfaction has been torpedoed by record-high inflation that’s led to a fall in global monthly wage growth for the first time this century. One of the biggest HR challenges of the past few months has been figuring out how to keep employees engaged. We have ended up building out an employment system that works really well for all our employees.” Your benefits package has been delivered “That starts with fully employing drivers, and paying them above the real living wage. “We wanted to start the right way,” Thomas explains. The startup has moved away from the “outdated, 1990s technology” that legacy couriers use. Thomas tells Startups that Packfleet has built from the ground up to ensure a more innovative approach to delivery. Seeing it from the business side was eye-opening. ![]() “I'd always seen it as a consumer, as a recipient. “Doing that gave me this view into the world of logistics from the business side,” he recalls. Bored, he decided to launch what he describes as a “hobby wine subscription business. While working at Monzo in early 2020, the company went into lockdown. Packfleet grew from Thomas’ personal qualms with the courier industry. “For a long time, consumers have been able to take advantage of very low pay and poor working conditions for drivers and warehouse staff,” says Thomas. But that’s the USP that Packfleet prides itself on, after CEO Thomas saw the poor and exploitative service that rivals were providing. Paying your staff a proper wage shouldn’t be a radical position. Meanwhile, Royal Mail CEO Simon Thompson has been grilled by MPs for accepting a £140,000 bonus while cutting member pay by up to £7,000. Amazon has confirmed it will close three UK warehouses, making 1,200 people redundant. Health and safety claims have been made against Evri, whilst Amazon whistleblowers have described warehouse teams being unable to take toilet breaks.Ĭlearly, the strategy is failing. At worst, direct violations of employee rights.ĭrivers have allegedly been paid below minimum wage, as well as being made to fork out for their fuel and vehicle costs. At best, reports detail anti-competitive practices. Still, this does not excuse the many staffing horror stories emerging from legacy couriers.Ĭost-saving measures by brands like Amazon, Evri, and Royal Mail have generated rage-inducing headlines over the past few months. Supply chains have been severely weakened by labour shortages, higher wages, and increased freight and shipping costs. It’s a difficult landscape for today’s couriers.
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