Steep penalties against Amazon & Co (WWN)

Online trading platforms and delivery services were among the winners of the corona pandemic. At the same time, they are known for their crackdown on unions and poor working conditions and pay. In Spain, however, the pressure on companies such as Deliveroo, Glovo and Uber Eats is increasing. A few days ago there was a harsh verdict against the US online giant Amazon. The social court in the capital Madrid decided that billionaire Jeff Bezos’ company had to permanently hire almost 2,200 parcel deliverers because they were bogus self-employed.

The Spanish Workers’ Union (UGT) had sued, citing the “Rider Law” that came into force last August. Union boss Pepe Álvarez called the verdict “extraordinary news” and warned all companies that continue to rely on such a business model. They should finally start to regulate the situation of the drivers and hire them permanently, as the social court has also ruled for Amazon. “They will all fall,” Álvarez looked far beyond delivery and delivery services to all digital platforms.

The current case involved Amazon Flex drivers. According to UGT, their bogus self-employment was obvious because they were forced by the company to work with their own vehicles and distribute packages using the company’s app, through which they received their instructions. From the point of view of more and more courts in Spain, given that drivers are completely at the mercy of companies, these are general employment relationships. The Social Court in Madrid has now determined that Amazon Flex is not just an intermediary between shops and delivery drivers, as the company claims. However, the verdict is not yet final, as an appeal is possible.

Despite everything, the union speaks of “further progress in case law in order to correctly adapt the new forms of work that arise from the integration of IT applications into production processes”. According to the UGT, the social court ultimately only implemented the requirements of the Supreme Court. In September 2020, this judged that the drivers of the Spanish delivery service Glovo are only bogus self-employed.

This is also the basis of the law passed by Labor Minister Yolanda Díaz, head of the left-wing coalition »Unidas Podemos« (UP). The Social Democrats, with whom UP governs as a junior partner, had prevented a general regulation for digital platforms. Incidentally, this was also criticized by the rider Isaac Cuende, who had drawn the precedent against Glovo through all instances.

Minister Díaz nevertheless assumes that »Spain has become a pioneer in international legislation«. That cannot be completely dismissed out of hand. In the EU, for example, a guideline for better conditions for platform workers is being discussed, with which the rampant bogus self-employment in this sector should be better combated. Last week, the European Parliament agreed on its position for the negotiations with the member states.

The popular Minister of Labor Díaz, who wants to stand as a candidate for the post of head of government in November’s parliamentary elections, can also take pride in the fact that controls have been significantly expanded. Sometimes she even receives death threats. The Labor Inspectorate has registered thousands of violations of the ban on bogus self-employment and has just imposed a fine of 57 million euros on the Glovo delivery service, which now operates in around 1,500 cities in 25 countries. According to the authority, this also uses drivers without a valid work permit.

Glovo is a repeat offender, the fines and additional payments to social security now add up to more than 200 million euros. Last year, the delivery service was forced to regulate the employment relationships of 10,000 drivers who were bogus self-employed for Glovo in Valencia and Barcelona alone. “No company in Spain, no matter how big or small, is above the law,” warned Labor Minister Díaz. After the new Glovo fine, she recalled that repeat offenders could face prison sentences of up to six years.