Deliveroo has signed a “historic” union recognition deal with the GMB Union covering the company’s more than 90,000 self-employed riders in the UK.
The Voluntary Partnership Agreement gives rider members of GMB rights to collective bargaining on pay and consultation rights on benefits and other issues, including health and safety.
The union will also be permitted to represent individual member riders in disputes, “giving them a stronger voice” the union said.
“Tens of thousands of riders for one of the world’s largest online food delivery services will now be covered by a collective agreement that gives them a voice – including pay talks, guaranteed earnings and representation in times of difficulty,” said Mick Rix, GMB national officer.
“Riders deserve respect for the work they do, and Deliveroo deserves praise for developing this innovative agreement with GMB – a blueprint for those working in the platform self-employed sector,” he added.
Several legal challenges have been brought against Deliveroo in recent years in the UK and elsewhere, arguing riders are workers, rather than self-employed, which would grant them certain benefits. These lawsuits have come at a serious financial cost, with Deliveroo revealing in its IPO prospectus last year that it had set aside more than £112m to cover potential legal costs in five countries.
The union added that the “first of its kind in the world” agreement recognises Deliveroo riders as self-employed, coming after a number of UK court judgements confirming this status.
Deliveroo said when they are delivering an order its riders were paid the national living wage, though most riders earned significantly more than this. This pay floor has been guaranteed as part of the agreement and will be discussed annually with the GMB.
“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,” said Deliveroo founder and CEO Will Shu.
“This voluntary partnership is based on a shared commitment between the GMB and Deliveroo to rider welfare and wellbeing. Together, we are focusing on what matters most to riders. Deliveroo was amongst the first platforms to offer riders free insurance, which we have extended to cover periods of illness and support for new parents, and we are proud to be able to build on that with this new partnership,” he added.
Several riders responded to the announcement with cynicism, one saying Deliveroo’s choice to partner with GMB over the Independent Workers’ Union of Great Britain (IWGB), which has pressured Deliveroo into making more significant changes, “seems extremely sketchy”.
“The IWGB are calling for actual reform. Deliveroo obviously don’t want this, so they’ve partnered with a more ‘friendly’ union to take some of the pressure off. It’s basically just a marketing campaign,” another said.
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