Subcontracting is widespread in warehousing and logistics. Client companies frequently outsource warehouse operations to third-party logistics providers, who then subcontract further to labour agencies or service providers –obscuring accountability for working conditions and labour standards.
Workers employed through labour agencies or subcontractors face precarious employment arrangements: short-term and zero-hour contracts and informal employment relationships. These undermine job security, access to social security, insurance and legal protections. Workers receive lower pay, fewer safety protections and less training than directly employed staff performing the same work.
Precarious employment weakens workers’ ability to exercise fundamental labour rights, including freedom of association and collective bargaining. Workers fear retaliation or non-renewal of contracts if they raise safety concerns or attempt to organise, which produces unsafe workplaces and prevents workers from raising issues and reporting safety risks.
Subcontracting chains can also obscure responsibility for occupational safety and health. Warehouse operators claim that labour agencies are responsible for worker training, while labour agencies may argue that safety management is the warehouse operator’s responsibility – and the gap between them is where injuries happen.
For more on subcontracting and precarious employment, see the Risks Across Transport guidance