PostNL is planning to offer all new parcel delivery staff a permanent contract, chief executive Herna Verhagen says in an interview with the Volkskrant.

The company has been under fire for relying largely on a network of freelance delivery staff who work effectively as employees but without the social security benefits.

Herna says the decision to offer contracts comes because delivery workers are increasingly entering people’s homes.

‘We install washing machines and we take the old ones away. Some consumers want their fridge refilling once a week,’ she says. ‘These are logical jobs for parcel delivery staff but then you require a level of stability, a group of people who deliver a high quality service.’

The investment will cost millions of euros, Herna said. At the same time, PostNL will increase the pay of its independent delivery staff, as agreed last year.

PostNL delivers some 600,000 parcels a day. While letter volumes have been declining, parcel deliveries have risen some 11%. PostNL booked €150m profit last year.