After months of fighting for a collective agreement for bicycle couriers, it is now becoming obsolete. Lieferando - alongside Foodora, the leader in the single-track food delivery business - is laying off hundreds of drivers and switching logistics to freelance contracts, the company confirmed a "Standard" report upon APA request. Nationwide, about 2,000 of the 5,000 so-called riders are employed, the rest are freelance contractors.

"The logistics model of Lieferando Austria is being aligned with the Austrian industry standard," said Lieferando spokesperson Katrin Wala on Tuesday in response to an APA inquiry. This is happening after a "careful evaluation." "In the future, we will therefore work with freelance contractors."

Unlike Foodora and Wolt, Lieferando has mostly employed its couriers in Austria until now. They still want to offer drivers fair and attractive conditions, according to Lieferando. The collective agreement was controversial and is not one of the lucrative ones in Austria. Nevertheless, it offers paid vacation, Christmas bonuses, surcharges for Sunday work, and payment in case of illness.

Lieferando Switches from Employment to Freelance Contracts: 600 Layoffs

According to "Standard," citing the works council, about 966 employees are affected. Lieferando stated upon request: "Currently, our delivery fleet consists of around 850 drivers. With the termination of our employment model, we will have to lay off around 600 drivers, utilizing all possibilities," said Wala. "Additionally, about 65 other employees at our locations in Vienna and the federal states are affected."

No Withdrawal from the Austrian Market

The latest step does not mean a withdrawal from Austria, according to Lieferando. "We continue to invest in the Austrian market." However, not in drivers who are subject to the collective agreement. It is about competitive conditions. They have tried for years to set benchmarks for the industry, but no competitor has followed. This has led to significant competitive disadvantages.

When asked why they negotiated a collective agreement for so long only to then rely on freelance drivers, Foodora responded that they had supported and even invested in the permanent employment model for years. They also mentioned that last autumn, following several strikes by cyclists, they had met the union's demands for a collective agreement. However, comparable employment models for all market participants, which they had advocated for, did not materialize.

"Lieferando is withdrawing as the last major provider of food delivery and bicycle courier services from the solution fought for by the unions with collectively contracted drivers. Instead, Lieferando is now relying on so-called 'freelance contractors' - this is a disgrace.

"These 'freelance contractors' are by no means truly free - in this model, the disadvantages of self-employment are combined with the disadvantages of platform dependency and imposed on the workers," criticized the Green Party's transport spokesperson, Lukas Hammer, in a statement on Tuesday afternoon. "If a provider that actually operates more fairly cannot survive in this chaotic market, it shows that it is urgently necessary to rethink the current rules in this area, also for the parcel and small transport market," emphasized Hammer.

The new government must quickly implement its initial signs in the government program "and tackle the issue of 'freelance contractors' before it is too late and the progress of recent years is lost." Local small transports and city logistics "could become an exemplary industry for climate-friendly and modern goods mobility."

"Those who have no strategy are tinkering with a strategy," responded FPÖ General Secretary Christian Hafenecker, dissatisfied with the outcome of the retreat. The announcement to develop an industrial strategy "will not save our faltering economy, as it needs immediate effective measures." Sharp criticism also came from the economically liberal think tank Agenda Austria: "This retreat is the perfect proof of Austria's political style: lots of talk, many headlines, little implementation - and if so, then too late," said economist Hanno Lorenz. He criticized that there is "no relief, only new taxes."

The number of bogus self-employed and freelance contractors will drastically increase, warned Markus Petritsch, chairman of the road sector of the vida union, in a statement. The union has been advocating for years for the abolition of freelance contractor relationships, which are widespread in the growing platform sector. This would shift risks such as poor order situations, illness, or other service disruptions onto the employees.

(APA/Red)

This article has been automatically translated, read the original article here.