BEERG Newsletter - Gig Economy: Deliveroo cuts union deal

According to UK newspaper reports, an attempt by Deliveroo to deflect criticism of its treatment of delivery riders by signing an agreement with the GMB appears in danger of backfiring. It has been accused by another union of using the GMB deal to endorse its “exploitative business practices”, including paying riders less than the minimum wage.

The IWGB union, which represents couriers, said it was a cynical ploy to undermine the appeal it is bringing to the Supreme Court in a case it is fighting for statutory collective bargaining on behalf of Deliveroo contractors.

Under the voluntary partnership agreement, the GMB will have collective bargaining rights on pay as well as consultation rights on areas including riders’ health, safety, and wellbeing. The union will also be able to represent individual riders in disputes provided they are GMB members, giving them “a stronger voice”. It said the deal recognised that Deliveroo riders were self-employed, a status confirmed in a series of UK court judgments.

However, the IWGB claimed the GMB had “no record of organising couriers” and was simply helping Deliveroo in “undermining the efforts of couriers to pursue their rights through the courts, to organise a voice at work and improve their working lives”. The GMB dismissed the IWGB’s claims, insisting that the deal would provide “an innovative blueprint” for self-employed workers. However, as of now there is little evidence that the GMB actually has any significant number of members in Deliveroo, raining the question of its legitimacy to do such a deal.

Will Shu, Deliveroo’s co-founder and chief executive, said: “Deliveroo has long called for riders to have both flexibility and security and this innovative agreement is exactly the sort of partnership the on-demand economy should be based on.”

Meanwhile, in Brussels debate continues around the proposed legislation on the status of platform workers with the Parliament debating the issue today (May 19^th) here