Express delivery has become an indispensable part of life in Shanghai. In the morning, when we receive our packages sent to us, few of us spend a second thinking about how they come to our hands or the Santa Claus of the packages, the couriers.
So far, the number of couriers in Shanghai has exceeded 100,000. In many people's minds, the job is well-paid, with common beliefs that couriers earn much more than office workers.
There is almost no threshold for educational background. Drive an electric motorbike, and you start off.
However what is unseen is the burdensome labor, year-round schedules including weekends and holidays, and the lack of work contracts.
Quotas
Though the different express companies have various quotas and payments for couriers, the pay structure is essentially the same. It is largely composed of two parts: basic wages, which are around 2,000 yuan ($299.82) a month, and a commission, which is the bulk of their pay.
It is understood that couriers mostly deliver the packages in the morning and receive the packages in the afternoon. Depending on the company, couriers can earn 1 yuan to 1.4 yuan for each package delivered.
Receiving a package, the courier can take a commission of 5 percent to 8 percent. Each day a courier must deliver at least 100 pieces, regardless of location in their city of work. Some efficient couriers can deliver 200 pieces. The difference in speed makes a difference in the wage gap.
If a package is delayed or lost because of the courier, he will be fined 100 yuan. If two packages are not delivered on time, it means that day's work will be a total wash.
Many couriers said that they must work seven days a week. Every morning, when most people are still sleeping, the couriers begin sorting packages. At 7 am, they hurry off to different corners of the city. They bustle about ferrying deliveries until noon, take a bite for lunch, then head back to work. The day's work usually finishes around 7 pm.
This system has given rise to some internal rules in the industry.
One courier, who requested anonymity, said that if a courier can't deliver the package due to illness, the company will arrange another to take his place, and the sick courier has to pay an extra 0.6 yuan per piece to the substitute as a commission fee.
Lack of insurance
A survey of 30 couriers showed that 90 percent of them do not sign any labor contracts with the delivery company, nor do they have pensions or provident funds, such as for retirement or home-buying. However, they seem unfazed by it.
One courier did a calculation: he said his monthly wage is 4,000 yuan including commission, and at the end of the month, he gets around 3,000 yuan, after penalties are deducted because of complaints.
"If I signed the contract and paid the pension and public accumulation funds, how much can I save?"
According to an investigation of the major express delivery companies, only SF Express required employment contracts.
"Not signing contract is a way to cut costs," said a franchise owner of one express company.
On its WeChat account, the Shanghai Federation of Trade Unions said that companies actually know that not signing the labor contract or paying into provident funds is against law, but they are still willing to take the risk to save cost.
According to the Bureau of Human Resources and Social Security in Qingpu district, where most express delivery companies are located, in the last two years the district has accepted 473 arbitration cases involving express delivery and logistics companies. Of them, 133 involved compensation for dissolving labor contracts, 167 of them involved payments, and 31 of them involved compensation for not signing labor contracts.
High job turnover
Express and logistics companies generally have three modes of operation, branch offices of delivery companies, franchise stores and a hybrid of the two.
According to a recent study, the express business is 24 times larger than a decade ago, and as a result many franchise companies have expanded to the market. However, salaried staff in the industry grew 13 times bigger, leading to a labor shortage.
Furthermore, because of tight working schedules, few people stick to the job. Turnover is common, with monthly resignations rising to 30 percent.
This summer some office workers in Zhangjiang High-tech Park complained that they had been waiting for a week for delivery of online purchases. An investigation found that six couriers responsible for the area had resigned because of high weather temperatures.
A person in charge of that express stand said "one courier is responsible for the whole street. If one resigns, then the delivery for the whole street will be stuck. It's impossible to find replacements in such whether."
In China the average fee for overnight delivery of packages up to 1 kg is 10 yuan to 13 yuan, a tenth of the cost in the US. The lower fees are attributed to the low wages of couriers.
According to a report on e-business logistics released by Beijing Jiaotong University conducted with Alibaba Group's Aliresearch unit and its logistics company Cainiao, couriers in China are underpaid.
The report states that over half of them earn 2,000 yuan to 4,000 yuan a month, and less than 1 percent of them earn 8,000 yuan, dispelling common beliefs that couriers earn over 10,000 yuan a month. It also states that more than 2 million people nationwide work in logistics for e-commerce, with 80 percent from rural areas.
The U.S. has one of the most developed express delivery service industries in the world. One important reason is the delivery companies attach much importance to the employees, incorporating the development of employees into company strategy.
For instance, FedEx espouses its belief in "PSP," standing for people, service and profit, and says it regards quality of service as the guarantee of profit.
Discussing the fact that less than 30 percent of couriers are on contracts, Zhou Siwei, a human resources manager at STO Express, said that in the future fewer and fewer employees will be without contract.
"We will make an effort to include all employees, no matter from franchise stores or branch offices, under unified management. Now all employees of branch offices have contracts, and in the future the franchise stores will be more in accordance with the norms," Zhou said.
He also pointed out that the company has increased its investment in growing staff skills.
"We've organized classes to help employees upgrade their educational background. All the staff can apply for that. We also offered a recruitment opening to all employees, which allows capable employees to become management personnel. Everyone has the opportunity to be promoted," Zhou said.
Other express companies said because they are restricted by the franchise model and the state of the express delivery industry, there is still a lot to catch up in terms of skill and management experience.
"It will not be changed overnight, but companies will pay greater attention to that. The rights and interests of couriers will improve in the future," said a person in charge of one of the outlets of ZTO Express.
