Packfleet, an electric vehicle courier, is facing allegations from the trade union Unite of attempting to transition its drivers from employees to self-employed status.
- The company asserts this change ensures drivers earn at least the real living wage, while Unite criticises the plans as exploiting workers.
- CEO Tristan Thomas defends the model, stating it allows drivers to earn more based on parcel delivery volume and ensures fair employment terms.
- Unite has pledged support for impacted drivers and accuses Packfleet of sacrificing its ethical standards for investment gains.
- Amidst these allegations, Packfleet secured $10m in venture capital to expand operations, raising questions about its motives.
Packfleet, known for its electric vehicle courier services, has come under fire from the trade union Unite, which alleges that the company is attempting to dismiss 30 employed drivers and convert them to self-employed status. This move, according to Unite, is in stark contrast to Packfleet’s previous assurance that it would not partake in the gig economy practices, which often leave workers with fewer rights.
The company, however, defends its new payment model, claiming that it is designed to ensure that drivers are remunerated fairly, particularly by guaranteeing them at least the real living wage. Tristan Thomas, CEO of Packfleet, elaborated that the previous hourly payment structure resulted in a pay cap for drivers, irrespective of their delivery volume, thereby limiting income potential for some of the most proficient drivers.
Thomas explained that the newly proposed ‘alternative worker model’ aims to allow drivers to take on more deliveries and potentially earn higher wages without compromising on delivery quality, thanks to their sophisticated routing software. This model purportedly enables drivers to benefit from increased flexibility in their work schedules, while also entitling them to benefits such as paid holiday and pension contributions.
Unite’s general secretary, Sharon Graham, has been particularly vocal against these changes, describing Packfleet’s approach as ‘disgusting’. She alleges that the changes are motivated by the interests of venture capitalists who have recently invested $10m into the company, possibly pressuring Packfleet to enhance operational efficiencies at the expense of employee welfare. Graham reaffirms Unite’s readiness to support its members, promising to combat what it views as a double-edged plan that compromises the company’s ethical principles.
The debate arrives at a time when Packfleet is actively expanding its footprint in London, improving its eco-friendly delivery capacities via a partnership with logistics platform bodo. This collaboration has reportedly achieved remarkable operational success, boasting a 98% first-time delivery rate and no parcel damages.
The controversy around Packfleet’s employment model highlights a challenging intersection of business growth ambitions and worker rights.
