Three directors for Dutch cargo employment agency Flexcargo, have been found liable for the underpayment of 16 temporary employees, according to the FNV, the Netherlands Trade Union Confederation.

Flexcargo went bankrupt in 2018 which then threatened to leave the 16 temporary employees underpaid.

However, in the case of the 16 temporary workers against Flexcargo, the bankruptcy trustee of the company declared bankrupt held the three directors liable for the full bankruptcy deficit. This includes approximately €435,000 in debts for the 16 temporary employees.

Flexcargo lent staff through various limited companies to companies such as Menzies World Cargo and DHL.

FNV Flex & Compliance said it successfully challenged the so-called loan structures of temporary employment agencies where thousands of temporary workers are structurally underpaid.

FNV director Lisa Blaas said, “The temporary employees were pushed back and forth via the BVs (limited companies), so that they were always administered as starting temporary employees. They only received the minimum wage, hardly any pension, and despite 24/7 schedules, no irregularity surcharges.

“Their DHL colleagues did exactly the same job but were paid 30% to 40% more in accordance with the collective labour agreement,” Blaas said. “FNV Compliance & Flex often encounters this type of abuse. We hope that this case will encourage other rogue employment agencies to comply with the collective labour agreement.”

“The same wage must be paid for equal work,” Blaas said, adding that this is the case for temporary workers who are hired within a chain of companies. 

“The bankruptcy trustee now judges that the directors are personally responsible for paying the wage claims, which range from €6,000 to €50,000. With this statement, chances are very high that the 16 temporary workers will still receive their arrears (debts owed)," Blaas said.