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Glovo continues to avoid the hiring of its distributors about two months after the promulgation of the controversy Rider Law which obliges all platforms to have all their employees under an employed contract.
Seven weeks later, the main player in the sector – which employs about 8,000 riders– is using all kinds of formulas to maintain a contracting model that prohibits the new regulations promoted by the Ministry of Labor and that has been overthrown by the Supreme Court.
The industry sources consulted by THE SPANISH-Invertia indicate that in Glovo They are fully aware of the pulse that is being thrown at the Government and that they are even preparing their legal teams for a new judicial battle if the new Rider Law it ends up in court.
“They know that all this will end in the courts and they play with it. If this goes to court, they have two or three years until their new model is knocked down, thereby saving time and saving the costs of this period” says a manager of another large digital delivery platform.
We are talking about the complaints that have already been made against the platforms as of 2017 and that in 2020 received the support of the Supreme Court, which ruled against this model for hiring freelancers. Now in Glovo they prepare for new complaints – from the employees or the Labor Inspectorate – and thus start a legal battle anew.
New models
Following the promulgation of the Rider Law, Glovo announced that his idea was to hire only a part of the workforce of riders who had been working for the platform. Specifically, it would hire 2,000 delivery men, but it will keep 80% of the workforce as self-employed (8,000 riders), in an ‘improved’ model with more job guarantees.
This model includes improvements in insurance and a new way of taking orders. However, according to the unions, in parallel it has implemented a series of modifications to your algorithm to try to reduce the signs of employment in its fleet and thus maintain its current employment status.
However, in the face of the barrage of criticism, the company is analyzing changes in the model, opening the door to include another type of relationship with its distributors. In this case, the information circulating in the sector indicates that they would be trying to migrate precisely towards the temporary agency model.
In this model, workers hired by other delivery companies are used, complying with the basic rule of the Government, but without having delivery workers in their workforce.. In any case, sources consulted by this newspaper indicate that, to date, Glovo has not hired anyone under the required model.
A situation outside the legislation, as indicated by the Ministry of Labor itself. In fact, when digital platforms began to slide their intentions to resort to subcontractors to circumvent the Rider Law, from the Ministry of Labor they warned that this ‘ruse’ would not work.
Dispute registration
It is within the possibilities that the legislation excludes, since the distribution would continue to be controlled by the platforms themselves and it would not be allowed by the department.
In this line and as reported Global Chronicle, the home delivery platform has started to challenge the first registrations of its workers in the Security Social after the entry into force of the new regulations.
The company has warned that it will appeal these contracts to cancel their validity. “We want to inform you that we do not agree with these registrations, so the we will contest“, has communicated directly to some of those affected.
On the other hand, the calculations made to Invertia by labor lawyers estimate that the total impact for Glovo of the new regulations will be at least 85 million euros per year, only in social contributions. We are talking about an unknown cost for all these platforms since the riders, as freelancers, paid their own fees to the Social Security.
These 85 million are calculated taking into account the 8,000 riders who currently work at Glovo, as recognized by all the associations in the sector. If everyone had to be hired -as the Ministry of Labor-, there would be no less than 8,000 new registrations at the Social Security. And as long as workers are not hired, this expense does not begin to be realized.
Work expenses
The average cost of the Social Security it is usually around 30% of gross salary. In the case of riders and Due to known work experiences, the vast majority would be hired with the minimum interprofessional salary (SMI), so the cost in contributions would be about 285 euros per month in the case of a full-time job.
In this case, for each rider hired, Glovo would have to pay 3,990 euros a year to Social Security, that if multiplied by 25,000 new hires, it would give rise to 85 million euros per year in additional costs.
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Reference-www.elespanol.com