DPD drivers call off action over pay, says firm

Delivery firm DPD says drivers that chose not to work on Tuesday due to a dispute over pay will return to work.

The company said that "an agreement on a way forward has been reached" but did not confirm whether it has deferred a plan to cut pay for deliveries of small packages. The BBC has reached out to DPD for further comment.

It had been thought that the delivery service could face disruption after some of its drivers began three days of action.

DPD previously said it did not expect the stoppage to have a "significant impact" on its services, and added that it had increased pay rates for the delivery of larger parcels.

Some drivers had refused to work for three days after DPD said it would cut the amount it pays for deliveries of small parcels by 65p.

The lower rate was intended to apply to those who are self-employed or franchised, which is the majority of DPD drivers.

The BBC has been told that the various chat groups where drivers were organising their action had about 1,300 to 1,500 participants.

Several drivers told the BBC they were given only a few hours notice before the payment changes came into effect in late September.

DPD said it had "adjusted some of our rates to reflect changes in our parcel traffic profile".

It said driver stops which include only smaller parcels would see a reduction of 65p.

Stops which include larger parcels, or high-value or pharmaceutical parcels would see no change, DPD said, while heavier deliveries would get an extra 65p.

The company also said it had introduced new incentive payments, "designed to increase earnings all year round".

"As a result, we believe our driver remuneration package remains among the best in our industry," it said.

But one driver said the changes would cut his income by about £25 a day, or around £6,500 a year, which would make it "difficult" for him to manage his household costs.

Another driver said that even with the increased rate for larger parcels, there is "no way" he could make up the losses resulting from the 65p cut.

"We just don't get that many larger parcels to make up for the loss resulting from the rate cut in smaller parcels," he told the BBC.

"And even if we did take on more larger parcels, we would have to work longer and do more stops just to earn the same amount as before the cut."

The drivers taking part in the action said they would refuse to deliver parcels on Tuesday, Wednesday and Thursday this week.

DPD previously said: "We acknowledge that some drivers have raised concerns regarding the new arrangements, and these are being addressed.

"However, a small number of drivers at various depots have chosen not to operate today. We do not expect this to have a significant impact on our service."

The move comes as the delivery sector suffers from increasing competition as people shop more online and get shopping delivered to their doorstops.

Online communication has already caused its first casualty among traditional postal services: Denmark recently ended its letter deliveries service, PostNord.