EU plan for Deliveroo and JustEat workers welcomed by Irish unions but criticised for threat to jobs
European Commission said draft rules could apply to up to 5.5m workers out of the 28m working at online platform companies in the EU.
An EU proposal that could regulate up to 5.5m people working in the gig economy in delivering food takeaways and parcels has been welcomed as providing a level-playing field by the Irish trades unions but criticised by some companies as likely to cost jobs.
The draft plan unveiled by Social Rights Commissioner Nicholas Schmit on Thursday aims to give self-employed workers for delivery riders working for online platforms such as Deliveroo, Just Eat, and Uber on the same level as employees.
"No one is trying to kill, stop or hinder the development of the platform economy," Commissioner Schmit said at a press conference.
However, the rules are needed to ensure that new business models uphold labour laws and social standards, he said. The commission said the draft rules could apply to up to 5.5m workers out of the 28m working at online platform companies in the EU.
Reactions varied, with chief executive Jitse Groen of Europe's largest food delivery company Just Eat Takeaway saying he welcomed the proposed EU rules. However, business group Delivery Platforms Europe, which includes Uber, Deliveroo, Glovo, and Delivery Hero, said what part-time drivers want most is flexibility on their working hours and the rules as proposed would lead to job losses.
Owen Reidy, assistant general secretary at the Irish Congress of Trade Unions, said the unions here would welcome any new initiative to usher in a level-playing field in the EU, including holiday pay for workers in the delivery companies.
Mr Reidy said if the plan were in time to become law that because of Brexit it would not apply to Britain, or automatically to the North, although Stormont has devolved powers over such employment matters.
A pending EU directive on adequate minimum wages could be of more immediate significance, Mr Reidy said. Petra Bolster of Dutch labour union FNV, which won lawsuits against Deliveroo and Uber, noted the proposal includes a list of five tests to help determine when couriers are self-employed.
Shares in Deliveroo in London fell by over 1% to value the firm at €4.8bn. Shares in Just Eat fell 3% in Amsterdam to value the company at over €8.6bn. And shares in Delivery Hero in Frankfurt fell 2% to value it at over €28.6bn.
- Additional reporting Reuters
