Arnold Püschel, Postal services, forwarding, logistics

1. Training EWC representatives to ensure effective worker representationEstoril, Portugal 19-21st April 2013 Arnold Püschel, Postal services, forwarding, logistics

2. For better working conditions of deliverers at CEP companies - Self-employment not exploitation!

3. Vita Arnold Püschel Jahrgang 1958 1975 Beschäftigung bei Deutsche Postgewerkschaft in Stuttgart 1978 - 1981 Studium – Betriebswirtschaft 2001 Übergang zu ver.di, LBz Baden-Württemberg 2007 Landesfachbereichsleiter für Postdienste, Speditionen und Logistik ( PSL ) Mitglied des Bundesfachbereichsvorstandes PSL Mitglied der Bundestarifkommission PSL Mitglied des Aufsichtsrats der Input Consulting GmbH Berlin/Stuttgart Mitglied des Aufsichtsrates DHL Freight

4. CEP is a growth market – in business terms • Since 1995 the CEP market has been growing twice as fast as the whole economy • 2000 and 2011 saw the following growth: • Road transport volume rose by 3.5 % • Rail transport volume rose by 21.2 % • CEP parcel volume rose by as much as 46.0 % • Only air freight had higher growth, i.e. 86.4% (air freight is also benefiting greatly from the growing volume in the CEP sector)

5. CEP is a growth market – in business terms • in 2011 about 2.5 billion items were transported • = growth over preceding year by 6% • with sales of approx. EUR 15 billion • 56% rise in consignment volume in the last 10 years • approx. 3 billion dispatched items expected by 2016

6. CEP is a growth market - employment • In 2011 about 188,000 employees worked directly in the CEP sector • They are either directly employed or work as (pseudo) self-employed people in the CEP sector • In addition, there are people in work with primary or secondary dependence on the sector • So the CEP sector provides employment for a total of about 366,000 workers

7. CEP is a growth market – the future will trump the status quo • Goods and services are increasingly traded via the internet • Online shoppers buy through Amazon, ebay, Zalando, HSE 24, QVC, mail-order companies etc. • E-commerce is on the rise – and so is the business of dispatching parcels • But with higher numbers come higher customer expectations of parcel delivery services – and pressure of competition

8. The facts of the matter – the actual situation • Workers at CEP companies • (market monitoring by Federal Office for Goods Transport on working conditions in 2011) • Transport by vehicles up to 3.5 t • CEP services + other activities = 9693 companies

9. Five central results • Parcel delivery is a precarious business • Small and mini sub-contractors depend contractually and economically on parcel service providers • The economic dependence of sub-contractors enables the parcel services to push through their business interests • They just pass on the cost pressure to keep costs down, and the principle of payment per piece has been imposed almost everywhere • Drivers becoming self-employed is described as a way of being better-off

10. Competition and its impact • That has effects on employment and on society • The label XYZ does not always indicate the true contents • Society is being given a false picture of things • Naturally only XYZ will convey your parcel from A to B … • That is called: concentration on the core business • In reality it means: getting rid of all obligations by outsourcing

11. Competition and its impact • Outsourcing deliveries to partners in the system / sub-contractors • Responsibility is outsourced • Corporate risk is minimised • The end-result is precarious employment

12. The facts of matter - the actual situation • Analysis • Outsourcing deliveries is, to a greater or lesser degree, part of the business model of the 5 most important CEP companies in Germany • “The Big Five” • approx. 35,000 employeesof CEP sub-contractors?! • approx. 1000 solo self-employed CEP (somebogus)?!

13. Employment under tougher conditions • Employment has not risen in proportion to the volume of deliveries • Just in time, same day, over night, • More intense working time • Flexitime / more work • Strain on health • Working and earning conditions laid down in collective agreements are coming increasingly under pressure

14. Employment situation • Increase in job insecurity • Increase in part-time jobs with mainly unpaid extra work • Temporary work, low-paid (mini) jobs, work on call – no connection with a company • Second, third, fourth class jobs

15. Employment situation • A parallel world of work is being created • People work and cannot make their living • Despite their job, they need supplementary benefits from the government • The social insurance systems are being undermined • No company representation of workers’ interests

16. How the public sees the sector • The CEP sector has come in for public criticism • The entrepreneurial practices are the problem – the sector has suffered a serious loss of image, but it is • home-made and it only have themselves to blame • some practices are legally questionable – and morally unacceptable • A problem of social policy – urgent need for public awareness • Decent jobs will also cost the consumer a bit more

17. How the public sees the sector • Trade unions have been drawing attention to the increase in precarious jobs for years • Politicians and society have tolerated the fact that many people cannot live on what they earn in the CEP sector • competition / market share – only the price counts • no legal relationship to the next sub-contractor • reduced entrepreneurial risk – but then things go downhill

18. How the public sees the sector • The way in which the CEP sector treats employees by consistently repressing, shifting and rejecting responsibility through the price battle is a far cry from decency and responsibility for social welfare • Those responsible seem to have lost a sense for saying: “That kind of thing is just not done!”

19. Central findings • Making work more intensive • Work in parcel deliveries has become far more intensive in the last few years • Demands have been stepped up • Introducing new services and information technology has raised the complexity of the work • Physical and mental strain has risen

20. Central findings • Lack of recognition • This kind of work receives less esteem in society • “anyone can do it” – does not require any special training or skills • This lack of esteem is not just based on an image problem • Through its staffing strategy the sector itself contributes to low social esteem • Most companies do not make a great effort to train their staff • A lack of training increases the strain on workers

21. ver.di calls for self-employment • Only collective agreements guarantee standards and fair payment • Collective agreements stipulate working conditions • They just need to be implemented everywhere • among ALL employees of parcel delivery services • Competition will then be about the quality of service on offer and not at the expense of employees

22. Central demands and how to assess them • Demands for the implementation of collectively agreed conditions, and wage agreements by sub-contractors • Mobilising members at companies of large service partners • Companies that outsource must take responsibility for the working conditions of people working for sub-contractors. There must be a wage agreement or the existing collective agreements must be applicable for sub-contractors • Demand for self-employment in parcel delivery • Self-employment must be put into practice in the growth market. Self-employment can rise gradually, as appropriate • Demand for minimum standards for outsourcing • Minimum wage EUR 8.50. (CEP companies think EUR 7–8.50 are enough for an hour’s work) • In some structurally disadvantaged areas, wages even fall below EUR 5

23. Ways of influencing working conditions • Recruit members in sub-contracting companies and gain acceptance for a works council and respect for wage demands! • Put pressure on companies engaging subcontractors • Raise pressure through publicity and enhancing official awareness in the companies that outsource

24. ver.di calls for self-employment • CEP companies bear the main responsibility for ensuring a • fair, social and socially sustainable delivery process - • through their capacities, their activities • or their failure to take action!

25. Employment situation

26. Herzlichen Dank für Ihre Aufmerksamkeit! • Thank you very much for your attention! • Merci beaucoup pour votre attention!