diff --git a/backend/wait-for-db.sh b/backend/wait-for-db.sh
index 24be434..802fb3a 100755
--- a/backend/wait-for-db.sh
+++ b/backend/wait-for-db.sh
@@ -43,6 +43,13 @@ done
 
 >&2 echo "Target database \"$target_db\" is ready."
 
+# Ensure storage directories exist with proper permissions (Issue #67 fix)
+# When host directories are bind-mounted, the container's built-in directories are overridden
+# This ensures the required directory structure exists before the application starts
+echo "Ensuring storage directories exist..."
+STORAGE_BASE="${STORAGE_PATH:-/app/storage}"
+mkdir -p "$STORAGE_BASE/events/active" "$STORAGE_BASE/events/archived" "$STORAGE_BASE/thumbnails" 2>/dev/null || true
+
 # Run migrations (use safe runner in production)
 echo "Running database migrations..."
 if [ "$NODE_ENV" = "production" ]; then
diff --git a/scripts/picpeak-setup.sh b/scripts/picpeak-setup.sh
index f85a8d1..554f00f 100755
--- a/scripts/picpeak-setup.sh
+++ b/scripts/picpeak-setup.sh
@@ -823,8 +823,8 @@ EOF
 
 create_systemd_services() {
     log_step "Creating systemd services..."
-    
-    # Backend service
+
+    # Backend service (includes workers - fileWatcher, expirationChecker are started by server.js)
     cat > /etc/systemd/system/picpeak-backend.service <<EOF
 [Unit]
 Description=PicPeak Backend Service
@@ -844,27 +844,10 @@ StandardError=append:$NATIVE_APP_DIR/logs/backend-error.log
 [Install]
 WantedBy=multi-user.target
 EOF
-    
-    # Workers service
-    cat > /etc/systemd/system/picpeak-workers.service <<EOF
-[Unit]
-Description=PicPeak Background Workers
-After=network.target picpeak-backend.service
 
-[Service]
-Type=simple
-User=$NATIVE_APP_USER
-    WorkingDirectory=$NATIVE_APP_DIR/app/backend
-Environment="NODE_ENV=production"
-ExecStart=/usr/bin/node src/services/workerManager.js
-Restart=always
-RestartSec=10
-StandardOutput=append:$NATIVE_APP_DIR/logs/workers.log
-StandardError=append:$NATIVE_APP_DIR/logs/workers-error.log
-
-[Install]
-WantedBy=multi-user.target
-EOF
+    # Note: Workers (fileWatcher, expirationChecker, emailProcessor) are now started
+    # automatically by server.js, so a separate workers service is no longer needed.
+    # Legacy picpeak-workers.service will be cleaned up during installation.
 }
 
 setup_caddy() {