The way management is handling this process is also deeply concerning. The company appears determined to push through these changes during the summer period, when workers should be able to enjoy their holidays and spend time with their families instead of facing uncertainty about their future.Reports that some employees learned of their dismissal via text message before receiving a full explanation reflect a serious lack of respect for the people who have contributed for years to the company’s success, carrying its daily operations.
What makes this decision even harder to justify is that UPS remains profitable: A profitable company should prioritise social dialogue and the preservation of jobs, rather than sacrificing workers in pursuit of lower labour costs.
But Belgian UPS case is not isolated and coincides with a further reduction in the work force in the United Kingdom.
Across Europe, subcontracting has become the new normal, bringing with it the normalisation of deviance. logistics giants are increasingly, like UPS in Belgium, utilising subcontracting, not just to deal with peaks in demand but rather to outsource their core business activities in an effort to drive down costs. Amazon’s Delivery Service Partner model in Germany has shown how even last-mile delivery, the core of the business, can be externalised, weakening accountability and increasing pressure on workers. in Italy, investigations into major logistics companies uncovered how subcontracting chains were used not only to cut labour costs, but to evade taxes and social security contributions through fraudulent intermediaries. furthermore, In February 2024, five subcontracted workers were killed in Florence, exposing once again the deadly consequences of fragmented responsibility and weak enforcement.
Abusive Subcontracting is not only a vehicle for social dumping; it is increasingly a mechanism for defrauding social insurance systems and evading VAT. Recent Italian investigations in the logistics sector have shown how complex subcontracting chains can be used to conceal labour costs, underpay contributions, and deprive public budgets of funding they desperately need.
The European Labour Authority has itself identified that there are growing enforcement challenges created by complex subcontracting chains, as identifying responsibility becomes increasingly difficult.
It is clear to us that subcontracting is being co-opted as a mechanism through which companies are able to lower labour standards, evade obligations, and transfer risks lower down the supply chain.
This is why there is now a clear need for European action and why the ETF, together with our affiliates urge European law makers to:
1. Limit subcontracting by prohibiting the subcontracting of core activities, meaning a company’s primary functions should not be outsourced to subcontractors. In addition, we ask them to restrict the number of subcontracting tiers by establishing a maximum of one or two levels of subcontracting and prohibit further subcontracting arrangements that involve only the supply of labour.
2. Ensure equal treatment throughout subcontracting chains by establishing a comprehensive system of joint and several liability across the entire chain, making clients, contractors, and subcontractors collectively accountable. Such liability should cover remuneration, social security contributions, taxes, occupational health and safety obligations, and respect for collective bargaining rights. Measures should also be strengthened to prevent unfair practices at all levels of subcontracting, thereby reducing the risk of social dumping and ensuring fair competition.
Workers are not numbers on a spreadsheet. They deserve respect, transparency, and meaningful consultation. This case shows exactly why stronger limits on abusive subcontracting are needed to protect jobs, working conditions, and workers’ dignity. We stand in solidarity with all our Belgian affiliates and workers.