Delivery company DPD is facing potential disruption after hundreds of drivers began three days of action in protest at cuts to their pay for delivering small parcels.
The company has reduced payments for such deliveries by 65p per parcel, a change that self-employed and franchised drivers say could reduce their annual earnings by as much as £6,500.
The protest, organised informally through online chat groups with an estimated 1,300 to 1,500 participants, began on Tuesday and is set to continue through Thursday. Drivers taking part have refused to make deliveries during the three-day period.
DPD, which relies heavily on self-employed and franchised drivers, said the payment adjustments were made to reflect “changes in our parcel traffic profile”.
The company said driver stops involving only smaller parcels would see the 65p reduction, while deliveries that include larger, high-value or pharmaceutical parcels would remain unchanged. It added that heavier items would attract a 65p increase and that new incentive payments had been introduced “to increase earnings all year round”.
“As a result, we believe our driver remuneration package remains among the best in our industry,” DPD said.
However, many drivers dispute that claim. One driver told the BBC that the change would cut his daily income by about £25, making it “difficult” to cover household expenses. Another said there was “no way” to make up the shortfall through larger parcels, which are less frequent.
“We’d have to work longer and do more stops just to earn the same as before,” he said.
DPD said it did not expect the action to cause significant disruption, though it acknowledged that “some drivers have raised concerns regarding the new arrangements”.
“However, a small number of drivers at various depots have chosen not to operate today,” a spokesperson said. “We do not expect this to have a significant impact on our service.”
The dispute underscores growing tensions in the UK parcel delivery sector, where rising competition, squeezed margins and fluctuating consumer demand are putting pressure on pay and conditions.
The standoff comes as logistics firms across Europe face structural changes driven by e-commerce growth and increasing demand for rapid delivery services.
Industry analysts say that falling delivery rates and the dominance of major online retailers have intensified competition, forcing delivery firms to balance cost-cutting with maintaining service quality.
The turmoil in the sector is reflected elsewhere in Europe, where traditional postal networks are under strain. Denmark’s postal service PostNord recently ended letter deliveries altogether, signalling a broader shift towards parcel-focused logistics.
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DPD faces disruption as drivers take action over pay cuts to small parcel deliveries