The report, which you can download, includes a summary of the case studies and multi-faceted recommendations
The various steps and activities of the TeamHub project have highlighted the dominant business model of the e-commerce industry. The majority of retail companies have integrated or are integrating e-commerce as part of their business. The transition of business-to-consumer commerce online is transforming both the retail and logistics sectors in terms of production processes, organisation and workforce management. E-commerce is based on a multi-stage supply chain process, where the winning business and organisational model has been the 'omni-channel' model, which involves the synergistic management of the various online and offline touch points between the company and the consumer in order to optimise the consumer experience. Large e-commerce and logistics companies tend to deal with complex services such as warehouse management, integrated supply chain management, data analysis, strategy development and organisation of delivery activities. Such control of the supply chain has been called "verticalisation" of the supply chain. In order to shift business risks, the vast majority of e-commerce companies rely on supply chains, especially for last-mile delivery, which means outsourcing the delivery service to subcontracted delivery companies. This is most often an example of economic dependency, with drivers employed on precarious contracts or as false self-employed.
TeamHub's research and a wealth of previous literature has shown that working conditions in the e-commerce and logistics sector tend to be poor. With regard to transport activities, in particular last-mile delivery activities, structural precariousness of working conditions is reported, linked to widespread outsourcing and subcontracting processes, as well as the increase of certain risks such as bogus self-employment, excessive work pressure, longer working shifts, intensification of work rhythms, and lack of trade union rights and collective bargaining coverage. In warehousing, precarious working conditions are linked to the high incidence of fixed-term, on-call and intermittent contracts or agency work due to frequent seasonal peaks, while poor quality of work is mainly due to the low predictability of working time, the frequency of overtime, night work and the physical constraints associated with carrying heavy loads and repetitive movements. In terms of pay, precariousness is a determinant of low pay in both parts of the supply chain. Job insecurity brings with it a range of other risks related to lack of skills and training, inadequate knowledge of the working environment, inadequate provision of personal protective equipment, lack of health and safety monitoring and the associated high rates of occupational accidents and physical illnesses. For drivers, the high pace of work, the focus on productivity and the nature of the workplace are combined with a lack of toilet facilities, refreshments and rest periods, creating difficult working conditions.
Finally, technological development and the digitalisation of these production processes bring with them a number of labour-related risks, such as: decisions based on algorithmic management, which have an impact on wages, working hours and health and safety; warehouse automation and robots in distribution centres, which could have an impact on employment levels; and surveillance technology and digital control, which have an impact on workers' privacy and data protection.
One of the consequences of the proliferation of logistics warehouses is the unregulated shift from retail and supermarket premises to logistics hubs, which entails uncontrolled land consumption. In fact, the logistics hub model suffers from a regulatory vacuum, which means that the creation of new warehouses is left to the unequal confrontation between large logistics and e-commerce companies that decide to invest in a territory and local administrations. The proliferation of logistics warehouses, which are not governed by specific urban and commercial regulations and plans, is a missed opportunity to manage the phenomenon by developing tailor-made procedures, land-use plans, public works and fair tax systems to protect the territory, ensure joint urban planning and make e-commerce players contribute to the growth of the community.
On the other hand, the impact of last-mile delivery flows associated with e-commerce has led to a sharp increase in urban traffic and road safety risks, as last-mile deliveries are almost exclusively carried out by wheeled vehicles. The increase in road transport in general, both from one warehouse to another and from a distribution centre to consumers (homes or parcel lockers), has important implications in terms of pollutant emissions. In this context, the consolidated expectations of consumers in terms of fast delivery still seem to prevail over awareness of the environmental impact of the sector and the ability to make conscious and sustainable choices. Another emerging phenomenon, as an alternative to home delivery, is the proliferation of an extensive network of parcel lockers in urban centres, which even seems to have a positive effect on reducing urban congestion. While there is an emerging urgency for trade unions to broaden the perspective beyond working conditions to include the environmental issues arising from the e-commerce sector, the green and zero emission targets at EU level, as well as the higher fuel costs reported in recent months, are encouraging some companies to move towards the use of hybrid or electric vehicles.
