About 100 franchisees of Aramex couriers (formerly Fastway couriers), representing the majority of the company's greater Sydney delivery drivers, are striking for 24 hours on Friday.
The Transport Workers Union says the couriers are fed up with "outrageously unfair" pay rates that earn them an average of $2.10 per parcel they deliver.
Central to the dispute is Aramex's franchise model, which requires couriers to use their own vehicles and pay the associated expenses.
Aramex describes its couriers as "independent business owners".
"This means our couriers have a vested interest in getting your parcel to you safely and as fast as possible," the company says on its Australian website.
TWU NSW president Tony Matthews says the company's model is "nothing short of modern slavery on wheels", with some couriers working more than 50 hours a week and taking home "just a few hundred dollars after costs".
"It should go without saying that it's unacceptable for couriers to be working for less than half the minimum wage in some cases - but that's the reality for Aramex couriers under these extremely unfair franchise contracts," Mr Matthews said.
Aramex says it "takes a zero-tolerance approach to any form of modern slavery in its operations or supply chains".
Its modern slavery statement, "intended to meet Aramex's obligations under the applicable Global Modern Slavery legislation" including laws in NSW, identifies the risk of modern slavery in its operations and supply chains as "low".
Risks that may arise include "migrant labour exploitation, equality, fair pay, excessive hours, safety and human trafficking", the statement reads.
Couriers are also protesting what they say are exorbitant deductions for parcels that are not delivered.
One courier who had COVID-19 was unable to deliver parcels and penalised more than three times what they would have been paid if they had been able to deliver the parcels, the TWU says.
"All that does is creates enormous pressure on couriers to continue working while they're sick, and that's not good for them or the community," Mr Matthews said.
Aramex also runs Blu Couriers, an Amazon Flex style delivery network "providing individuals the opportunity to work on their own terms" delivering parcels in their own cars.
Aramex has been contacted for comment.
Friday's strike is the latest industrial action in the parcel delivery business in recent months, with unions staging strikes and other stop-work action against AusPost, StarTrack, and FedEx in the lead-up to Christmas.
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