COMMENT:
The ongoing plight of contract courier drivers is back in the news.
RNZ reports drivers, classified as essential service workers, have been instructed to apply for the Government's wage subsidy by companies they deliver for - despite not being in their employment. Upon issuing those instructions, companies have then appeared to use the subsidy to complement their own, regular payments to drivers. As contractors, drivers are paid according to deliveries completed. Notably, reports show that while parcel delivery volumes plummeted at the beginning of the level 4 lockdown, they have since recovered. Workers are now struggling to keep up with demand, with one major company stating it needs to recruit more drivers. Despite that, drivers say the subsidy arrangement by courier companies has left them earning less at a time of extreme busyness.
Confused? You are not the only one.
Some background to set the scene. Most courier drivers are owner-operators and are contracted by companies for services. The arrangement is imposed by courier companies, which have strict requirements around how drivers work. In the past few years, problems with fair remuneration and work conditions have highlighted the vulnerability and lack of rights for drivers - with companies holding ultimate control over delivery runs, vehicle and uniform appearance, and even leave periods. That power imbalance has also been acknowledged by the current Government, which has requested public feedback on how to improve protections for workers in this group. The MBIE discussion document even gives the example of courier driver "Matiu" as a "dependent contractor" who falls in the "grey zone between employee and contractor status". "They depend on one firm for most of their income and have limited control over their day-to-day work", it says.