Couriers stage 24-hour strike over parcel pay rates

Industrial disputes continue to rise within the parcel delivery business as franchising couriers strike over their pay rates.

Online shoppers were warned that thousands of parcels may be delayed in Sydney due to the 24-hour strike staged on Friday.

About 100 franchisees of Aramex couriers, formerly known as Fastway couriers, represented the majority of the company’s greater Sydney delivery drivers during the industrial action.

The Transport Workers’ Union said that the couriers are striking over “outrageously unfair” pay rates that earn them an average of $2.10 per parcel they deliver.

TWU NSW president Tony Matthews said the strike is the result of frustration among Aramex couriers who have been trying to negotiate fairer pay, while others have “gone pretty well belly up”.

Couriers are calling for changes to their pay structure, as it has no “safety net” in place.

However, Matthews acknowledges the franchise nature makes things “a little bit complicated”.

“There is a minimum these guys need to be making … any business has got a cost base … all the associated insurances, if you’re not making enough to cover those costs you’re in a lot of trouble,” he said.

The dispute stems from Aramex’s franchise model, which requires couriers to use their own vehicles and pay the associated expenses.

Aramex describes its couriers as “independent business owners”.

“This means our couriers have a vested interest in getting your parcel to you safely and as fast as possible,” the company says on its Australian website.

Several couriers, however, are struggling to make ends meet as a result of the franchise model.

Aramex franchisee Brad Gilbert said the company had increased what it charged customers and decreased what it paid couriers to deliver parcels.

“What we’re earning now is not what we were earning 18 months ago … we’re doing more for less and we’ve got drivers here who are genuinely struggling to make ends meet,” Gilbert said.

Couriers were also trying to make up the difference by working excessive hours and delaying vehicle maintenance, Matthews revealed from a protest outside the Aramex Chullora depot on Friday morning.

Matthew went to describe the company’s model was “nothing short of modern slavery on wheels”, with some couriers working more than 50 hours a week and taking home “just a few hundred dollars after costs”.

Aramex said it “takes a zero-tolerance approach to any form of modern slavery in its operations or supply chains”.

Based on its modern slavery statement, the risk of modern slavery in its operations and supply chains is identified as “low”.

Risks that may arise include “migrant labour exploitation, equality, fair pay, excessive hours, safety and human trafficking”.

Couriers are also protesting what they say are exorbitant deductions for parcels that are not delivered.

Aramex also runs Blu Couriers, an Amazon Flex style delivery network “providing individuals the opportunity to work on their own terms” delivering parcels in their own cars.

Aramex has been contacted for comment.

Friday’s strike is the latest industrial action in the parcel delivery business in recent months, with unions staging strikes and other stop-work action against AusPost, StarTrack, and FedEx in the lead-up to Christmas.

with news from AAP