Delivery service Lieferando reduces positions for approximately 2000 drivers - Delivering a decline of approximately 2,000 driver positions by Lieferando
In a significant move aimed at adapting to rapidly changing market conditions, food delivery service Lieferando has announced plans to lay off approximately 2,000 drivers nationwide by the end of the year. This decision, which will particularly impact cities like Hamburg, could have substantial effects on employment conditions, collective agreements, and local economies.
The criteria for selecting fleet partners is a strict process for Lieferando, and the company is aiming to work with partners who permanently employ riders and pay them accordingly. This shift in partnerships is part of Lieferando's strategy to address customer expectations for reliable service and short delivery times.
However, the transition from regular employment to freelance status, as announced earlier this year, and the layoffs could significantly reduce job security for drivers. Freelance workers often lack the benefits and protections associated with regular employment, such as health insurance, paid leave, and unemployment benefits. Additionally, freelance drivers may face more flexibility in their schedules but could also experience increased pressure to meet delivery targets, potentially leading to longer working hours without overtime pay.
The transition to freelance status also challenges the collective bargaining power of workers. Freelancers are typically not covered by the same collective agreements as employees, which can limit their ability to negotiate better wages and working conditions. The layoffs and shift to freelance models might weaken the influence of unions advocating for workers' rights, as fewer workers would be classified as employees eligible for union representation.
The impact of these changes in Hamburg could be particularly strong. The city's size means that many families could be affected by the income loss, potentially leading to increased economic pressure on the community. The shift to third-party delivery companies might create new job opportunities but could also lead to a more precarious labor market with fewer stable positions.
Lieferando's decision to mainly employ drivers directly has been praised by labor representatives. This move contrasts with the widespread issue of fake self-employment in the food delivery market, where labor representatives have criticized exploitative conditions. The EU Commission has issued a platform directive to prevent fake self-employment in platform businesses, but it needs to be implemented at the national level.
Negotiations for a social plan will begin as soon as possible at Lieferando's sister company, with the aim to complete the process by the end of the year or at the latest by the first quarter of 2026. In smaller markets like Wiesbaden, Lübeck, and Bochum, Lieferando will collaborate with specialized logistics companies who will take over deliveries with their own drivers.
It is essential to note that Lieferando is a subsidiary of the Dutch delivery service Just Eat Take Away. The German operations of Lieferando are run by the subsidiary Lieferando Marketplace GmbH. The NGG union has been fighting for a collective agreement for Lieferando employees and a minimum wage of 15 euros per hour.
In conclusion, Lieferando's restructuring could lead to more precarious employment conditions for drivers and challenge the effectiveness of collective agreements in protecting workers' rights. This news underscores the need for continued dialogue between companies, unions, and policymakers to ensure fair and sustainable working conditions in the gig economy.
The new community policy at Lieferando, focusing on direct employment of riders, is a step towards addressing the issue of fake self-employment in the food delivery market. However, the shift to direct employment could potentially strain the finances of drivers, especially during vocational training periods, due to the absence of benefits like health insurance, paid leave, and unemployment benefits normally associated with regular employment.
The upcoming negotiations for a social plan are crucial in mitigating the financial impact on drivers, given the technological advancements and business expectations that exert pressure on delivery service providers like Lieferando to maintain reliable service and short delivery times.
