Despite a steep increase in online and mail-order retail sales, workers in this sector remain underpaid compared to other industries. The average gross monthly income for full-time employees in this field hovered around 2952 euros in 2022, according to the Federal Ministry of Labor's report to the Left Party in the Bundestag. Just shy of 30% of these employees fall below the low-wage threshold of 2501 euros a month.
Across all industries, median monthly gross income was a more substantial €3646. It's worth noting that only one in six employees fall into the low-wage category. Between 2018 and 2021, median income in this sector increased by approximately 8% while sales skyrocketed from nearly €70.5 billion to 120 billion euros.
"The internet and mail order business is thriving, especially during the holiday season. Employees are working tirelessly to meet delivery demands. Yet, while entrepreneurs are reaping the profits, these significant sales figures seldom appear in their employees' paychecks," commented Susanne Ferschl, a Left Party member of the Bundestag. She advocates for increased collective bargaining and a minimum wage hike to 14 euros an hour.
Insight: Underlying Factors Impacting Wages
Various factors contribute to the lower average wages in the mail-order sector. Firstly, the industry often grapples with high operational costs such as shipping, packaging, and customer service expenses, which can diminish profits and cause pay disparities.
Secondly, the competition in the mail-order industry is intense, with many businesses operating on thin profit margins. Struggling to maintain profitability, companies often can't afford to offer higher salaries.
Thirdly, labor market conditions might not favor increased wages. If the sector experiences a surplus of workers, employers may not feel compelled to raise salaries.
Additionally, mail-order companies often prioritize efficiency and cost-cutting measures to maintain competitive pricing, which can lead to lower wages. Lastly, regional differences in labor and living costs can further impact wages.
These factors combine to produce the lower wage landscape in the mail-order business. Despite extensive growth and increasing turnover, wage disparities continue to persist.
