The risk
Subcontracting is widespread in warehousing and logistics. Client companies frequently outsource warehouse operations to third-party logistics providers, who may then subcontract further to labour agencies or service providers. While subcontracting can increase operational flexibility, it can disguise accountability for working conditions and labour standards.
Workers employed through labour agencies or subcontractors often face precarious employment arrangements such as short-term contracts, zero-hour schedules, or informal employment relationships. These arrangements can undermine job security, access to social security, insurance, and legal protections. Workers may receive lower pay, fewer safety protections and less training than directly employed staff performing the same work.
Precarious employment also weakens workers’ ability to exercise fundamental labour rights, including freedom of association and collective bargaining. Workers may fear retaliation or non-renewal of contracts if they raise safety concerns or attempt to organise. This dynamic contributes to unsafe workplaces and prevents workers from participating in hazard reporting or safety planning.
Subcontracting chains can also disguise responsibility for occupational saftety and health. Warehouse operators may claim that labour agencies are responsible for worker training, while labour agencies may argue that safety management is the warehouse operator’s responsibility. This diffusion of accountability increases the likelihood that safety gaps will emerge. These safety risks ultimately pose a commercial, legal and reputational risk to the upstream supply chain actors and brands.
The ITF Warehousing Principles emphasise the importance of secure and decent employment as a foundation for safe and dignified work. Insecure employment relationships undermine this objective and increase the risk of exploitation across logistics supply chains.
