Future Labour Conditions at Lieferando: Is a Pay-to-Work Scenario on the Horizon?

In a move that has raised eyebrows in the logistics industry, Lieferando, the popular German food delivery service, has announced plans to close its logistics operation in Potsdam and outsource its delivery operations to subcontractors such as Fleetlery. This decision is expected to result in the layoff of all 50 full-time drivers who belong to the operation.

The controversy surrounding this decision has deepened with allegations of union-busting and exploitation of delivery riders. Michael Kingreen, a co-founder of Fleetlery, has been at the centre of these allegations. Kingreen, who has worked at Ernst & Young, a leading audit firm, and was a project manager at TKE Elevators, is now involved in addressing working conditions for delivery riders, including those for Lieferando. However, his company, Fleetlery, is accused of employing couriers with unclear residence status, paying them per order with no contracts, and in cash without a receipt.

The works councils at both Lieferando and Fleetlery have expressed concerns about these working conditions. They suspect that Fleetlery may be exploiting couriers with limited German language skills and corresponding legal uncertainty. The employees in Potsdam have even demanded that all Potsdam drivers be transferred to Berlin.

The works councils at Lieferando have faced difficulty obtaining information about working conditions at Fleetlery, making negotiations for social plans for the dismissed drivers challenging. Allegedly, Lieferando has withheld information from the works councils so far, making the start of negotiations difficult.

The economic risk is being shifted to couriers upon payment after delivery, potentially leaving them without job security or protection under the Works Constitution Act. Whether there are also permanent positions at Fleetlery is unclear.

Last July, drivers who had gone on strike for a collective bargaining agreement in Hamburg, where around 500 drivers deliver for Lieferando, work for the company. The amount of the mediation fee that Fleetlery retains per order is also unclear.

The employees' demands have not fallen on deaf ears. Lieferando's works council members believe the company's actions could be a form of union-busting. In response, Lieferando plans to terminate 2000 full-time couriers at 45 locations, including Hamburg, where it will close 34 locations.

Despite the controversy, drivers from subcontractors like Fleetlery will handle Lieferando's delivery of orders in the future. Drivers must pay a fee to activate their Fleetlery account to receive orders. However, the vulnerability and caution of these delivery riders, who are less likely to engage with trade unions, public authorities, and the judiciary, have made it challenging to address these issues.

This development in the logistics industry has sparked a broader conversation about the working conditions of delivery riders and the potential exploitation that exists within the sector. As the situation unfolds, it remains to be seen how Lieferando and Fleetlery will address these concerns and ensure fair and safe working conditions for their delivery riders.

Future Labour Conditions at Lieferando: Is a Pay-to-Work Scenario on the Horizon?