Wages, Working and Living Conditions

Warehouse work is increasingly shaped by subcontracting, precarious employment and fragmented supply chains, which can create risks relating to wages, working conditions and living conditions. The ITF Warehousing Principles highlight that outsourced and agency-based models can weaken accountability for fair pay and conditions, leading to low wages, irregular hours and limited access to benefits or social protection.

Precarious employment arrangements can result in income instability and unpredictable schedules, making it difficult for workers to plan their lives or secure adequate living conditions. Workers may also face intense performance targets, long or irregular shifts and limited rest, particularly in high-pressure environments such as e-commerce logistics

These risks can be compounded for migrant workers, who may face additional barriers to accessing housing, social protection and support services. In some cases, poor coordination across supply chains can mean that working conditions vary significantly within the same operation.

Together, these factors can affect job quality, worker wellbeing and workforce stability, while also creating operational and reputational risks for companies involved in warehousing and logistics.

Workforce challenges

The risk

Warehousing operations globally face persistent workforce challenges including decent work shortages, high turnover, skills gaps and the increasing reliance on migrant or temporary labour. These labour market pressures are driven by e-commerce’s increasing demands for rapid order fulfilment and high throughput; liberalisation of regulations and weakened enforcement of labour standards; high transport market fragmentation and increased downward cost pressures; and ultimately, a race-to-bottom in labour costs and standards that increasingly fall below minimum human rights thresholds.  

For warehouse workers, workforce instability can result in significant labour risks. High turnover may lead to inexperienced workers performing physically demanding or hazardous tasks without sufficient training. Short-staffing can intensify work pace and production targets, increasing the likelihood of accidents involving forklifts, automated equipment or manual handling. Workers may also face constant pressure to maintain productivity levels despite insufficient staffing levels, leading to fatigue, stress and injury risks.

Non-standard forms of employment (NSFE) and migrant and non-resident labour are increasingly exploited in warehousing and logistics to address workforce challenges. This further increases decent work shortages. These workers may lack familiarity with safety procedures, equipment operation, or emergency protocols, further increasing workplace risks. Language barriers can also undermine effective communication of safety procedures and rights. 

In many warehouse environments, workforce challenges can also weaken collective bargaining and grievance mechanisms. Workers in precarious or temporary roles may feel unable to raise safety concerns or report hazards due to fear of losing their jobs. This undermines the positive safety culture emphasised in the ITF Warehousing Principles, which highlight worker participation and reporting as essential components of safe workplaces.  

Ultimately, workforce instability can compromise both worker safety and supply chain reliability. Poor working conditions and high turnover reduce operational efficiency and create systemic risks within global supply chains. 

What companies and supply chain actors can do

Companies relying on subcontracted warehouses and logistics can mitigate these risks by: 

  • Requiring minimum staffing ratios and workforce planning standards in contracts. 
  • Ensuring all warehouse workers receive adequate safety training before starting work. 
  • Prohibiting excessive reliance on temporary labour for core operations. 
  • Supporting living wages and secure employment conditions to improve retention. 
  • Requiring supplier reporting on workforce turnover, staffing levels and training rates. 
  • Engaging with worker representatives and unions to monitor workforce conditions.