Delivery dilemma: Thai logistics firm in hot water as labour exploitation claims posted

A prominent private logistics company has been forced to navigate emerging challenges, as allegations of labour exploitation surge. A post from the Riders Union page highlighted the plight of the company’s employees, who face drastic cuts in their commission rates and are expected to deliver up to 200 to 500 parcels a day without overtime pay.

The post alleged…

“Employees have resigned nationwide due to reduced commissions. Some have seen their earnings plummet from 8,000 baht to less than 500 baht.”

The post further claimed that a new company policy requires employees to deliver 300 to 500 parcels per day, with commission paid only for 40 to 80 of those deliveries.

These labour exploitation allegations have led to a growing discontent among the workforce, with many employees choosing to resign. The disgruntled former employees have taken to social media to air their grievances, causing reputational damage to the company.

The company responded to the allegations, acknowledging that it has indeed reduced employee compensation. However, it defends this move as a necessary adjustment to compete in the highly competitive logistics industry.

The company also clarified that the allegations of employees working up to 18 hours a day, and the requirement to deliver 300 to 500 parcels per day, are not true.

In relation to complaints of undelivered parcels piling up in some warehouses, the company admitted to facing some issues due to staff resignations in certain areas, such as Bangkok. However, it emphasised that it is working swiftly to resolve these problems, and assured that the overall operations of all branches will not be affected.

The company is currently hiring more staff and redistributing resources from nearby branches not affected by the issues to alleviate the backlog, reported KhaoSod.

The company’s assertion is a reminder that while the logistics industry is intensely competitive, the welfare of employees is a critical factor that should not be overlooked. This incident highlights the importance of balancing business objectives with ethical labour practices.

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