Why Pressure on DHL Subcontractors Matters for Swiss SMEs

Business owners in French-speaking Switzerland operating in the delivery sector say their relationship with DHL has reached breaking point. According to accounts gathered by watson.ch, subcontractors are complaining of reduced pay, increased pressure on volumes and a contractual dependency that leaves them with too little margin to cover their costs.

The issue extends beyond the parcel sector alone. It highlights a well-known vulnerability faced by many Swiss SMEs: when a major client keeps the business running, finances the vehicles, keeps the teams busy and fills the order book, it can also concentrate a significant proportion of the risk. In logistics, where fixed costs, working hours and obligations towards employees weigh heavily, the balance can be tipped very quickly.

Less lucrative delivery rounds, heavier loads to carry

The best-documented case is that of Alaeddin Abdallah, boss of AB Express, a subcontractor for DHL. He tells watson.ch that he now sees bankruptcy on the horizon. His story is one of a classic downward spiral: initially, the business appears profitable; the entrepreneur invests, leases vans and takes on staff; then economic conditions deteriorate whilst the cost structure remains unchanged.

According to his account, two years ago a delivery round brought him an average of 12,000 francs a month. Today, he says he receives an average of 9,400 francs per round per month – a level he considers insufficient to keep his business running. Another subcontractor operating in French-speaking Switzerland, referred to by the pseudonym François, describes a similar situation and says he has not paid himself a salary for some time.

Both entrepreneurs point in particular to an unfavourable trend in remuneration as the operational workload increases. François explains that the rate paid by DHL per ‘stop’ – i.e. a delivery stop – drops sharply beyond a certain threshold: between 1 and 54 customers, a fixed sum is paid, but from 55 customers onwards, the rate is almost halved, according to his account. He adds that he receives around 10 centimes per parcel, on top of the stop fees, whilst the customer pays DHL at least 10 francs per parcel for a shipment from Switzerland to Switzerland.

DHL, for its part, disputes the idea of a fixed, uniform rate of pay. The company tells watson.ch that the amounts paid are not based on monthly flat rates, but depend in particular on the volumes handled and the number of working days in the month. It also states that rates are negotiated individually with each subcontractor and set out in a service agreement signed by both parties.

The economic trap of subcontracting when costs remain with the SME

For an SME, the key issue is not just the turnover generated by a contract. It is the margin actually available after deducting costs for vehicles, fuel, insurance, wages, social security contributions, administration, staff absences, maintenance and unforeseen expenses. In a delivery business, many costs are difficult to reduce overnight. A leased van continues to incur costs even if the pay per round decreases. Employees must be paid even if the client changes delivery frequencies or the assigned areas.

The subcontractors interviewed by watson.ch also mention costs linked to the very operation of the DHL network: hire of scanners providing access to the parcel network, purchase of uniforms from DHL, and branding of vans with the company logo. Alaeddin Abdallah points out that these branded vehicles cannot easily be used for other clients. This is a crucial point for any SME: an asset that appears productive can become a captive asset when it is too closely tailored to a single client or a single brand.

Dependence is therefore not measured solely by the proportion of turnover generated by a single client. It is also evident in day-to-day operations: who decides on volumes, timetables, service areas, equipment, the branding displayed on vehicles, and the frequency of deliveries? The more a subcontractor tailors its model to a single client, the more its capacity for negotiation and reorientation is reduced.

In the published testimonies, this dependence takes a very concrete form. Alaeddin Abdallah explains that he accepts the increase in volume in an attempt to cover his running costs, whilst acknowledging that he is running on empty. François states that refusing an increase in workload can lead to the rapid loss of a delivery area. This type of situation creates a management dilemma: accepting more work can exacerbate internal tensions if the rate does not cover costs; refusing can immediately threaten turnover.

Work rates, overtime and wages: the risk quickly falls back on the employer

The other aspect of the issue concerns the employees of subcontractors. According to the contractors quoted, work rates have increased. Alaeddin Abdallah states that since March 2026, DHL has been requiring them to serve 90 to 95 customers a day and that his drivers regularly work overtime. He considers this pace unsustainable.

For an SME employer, this is a critical issue. Even when a client imposes high operational targets, the obligations towards employees remain with the employer. The rules governing working hours, rest periods, wage payments, health and safety, and the organisation of work do not cease to apply simply because the pressure comes from a client. In Switzerland, the general framework governing work and the rules applicable to professional drivers must be taken into account when organising delivery routes. Depending on the situation, contractual relationships between companies may fall under a contract for services or a mandate, but this does not replace a detailed analysis of the contract and the economic reality.

Syndicom, contacted by watson.ch, highlights precisely this difficulty. Virginie Zürcher, co-head of the French-speaking Switzerland region, points out that these subcontractors are regarded as employers, which makes providing them with trade union support more complex. The union says it is aware that these businesses very rarely manage to stay afloat, but points out that its main concern remains ensuring the legal framework is applied to their employees. It also mentions that some employees have already sought support regarding unpaid wages.

The situation illustrates a common risk in small businesses: the manager initially absorbs the fall in profit margins by reducing or cutting their own pay, then by working longer hours, and then by deferring certain expenses, before the strain begins to affect wages or suppliers. At this stage, the problem is no longer merely commercial. It becomes a social, accounting and, at times, legal issue. A trust company or external adviser can help to assess the situation objectively before the warning signs turn into a cash flow crisis.

Before signing, simulate the worst-case scenario rather than the best

For SME managers, this case highlights the importance of testing a contract against conservative assumptions. The right approach is not simply to calculate what the contract will yield if volumes are high and everything runs smoothly. You must also simulate the worst-case scenario: fewer working days, rising costs, staff absences, a vehicle out of action, a less profitable route, additional volume requiring extra hours, or payment coming later than expected.

When reviewing a contract, one must focus on the rates, but not exclusively. Clauses relating to amendments, termination, notice periods, price revisions, penalties, de facto exclusivity, use of the brand, mandatory tools and the allocation of territories can carry just as much weight as the advertised price. In the DHL case, subcontractors have criticised, in particular, the lack of an annual contract and the regular signing of contractual amendments. DHL responds that rates are subject to periodic reviews and can be renegotiated by both parties.

In practice, an SME should avoid finding out its profitability only after commitments have been made. A simple dashboard may suffice: total cost per route, cost per vehicle, hours actually worked, margin per zone, proportion of turnover dependent on the client, payment terms, and the ability to redeploy vehicles and staff. These indicators do not determine the balance of power, but they do help to identify the threshold at which the contract begins to destroy value.

Diversification also remains a safeguard. It is not always easy in an industry organised around routes and visible brands, but it must be considered before the business is fully geared towards a single client. When vehicles, uniforms, digital tools and timetables are tied to a single client, breaking away from the relationship can be costly and time-consuming.

A commercial dispute that raises a broader issue for Swiss SMEs

At this stage, no specific official position from the Confederation or the cantons has been identified in the documentation provided, and, according to the available information, ASTAG has not issued a specific statement on relations between DHL and its subcontractors in French-speaking Switzerland. The debate therefore remains centred primarily on the accounts of business owners, DHL’s response and trade union concerns regarding the drivers.

However, it would be simplistic to view this merely as a dispute between a large logistics company and a few disgruntled service providers. The issue raises questions about the role of small businesses within value chains driven by major clients. When an SME invests, hires staff and organises its operations around a contract over which it has no full control, it becomes vulnerable to any changes in pricing or operational procedures.

For the affected business owners in French-speaking Switzerland, the urgency is both financial and human. For other SMEs, the lesson is more sobering but just as tangible: a major client can help a business grow, but it can also stifle it if the costs, risks and flexibility rest primarily with the subcontractor. Before committing to a contract or renegotiating one, it is best to have the contracts reviewed, quantify the worst-case scenarios and check the social, tax and legal implications on a case-by-case basis with competent professionals.