The vice president has accused Glovo of “violating” the labor rights of its workers and of “obstructing” the work of the Labor Inspection,
The Second Vice President of the Government and Minister of Labor and Social Economy, Yolanda Diaz, has indicated this Wednesday that the Labor Inspectorate has imposed a fine on Glovo of almost €79 million for breaking the so-called ‘Rider Law’.
Díaz, in statements to the press upon his arrival at the Government control session in the Congress of Deputies, has also stated that they have proceeded to arregularize the situation of 10,600 workers of this company, reports Europa Press
The second vice president has accused Glovo of “violating” the labor rights of its workers and of “obstructing” the work of the Labor Inspectorate, something that she has described as “very serious” in a social and democratic State of Law, in which companies “have to comply with the law”.
“We are facing an authentic performance of false autonomous and the weight of the law will fall on this companyas has already happened with the Inspection”, warned the vice president.
Glovo has recognized the amount of the sanction as well as the fact that the amount refers to the payment of contributions of more than 10,000 workers plus the sanction proposal. also that the investigated period covers from 2018 to the entry into force of the Rider Law. Contrary to what the vice president points out, the infraction occurred in the legal framework prior to the current one, according to the company
Vice President Diaz is proud of the actions of some labor inspectors who are very upset with her precisely because of the conditions in which they carry out their work. They are scarce and poorly paid, they complain. In the coming weeks they could call a strike in protest against Daz.
Glovo now faces a judicial procedure in which this sanction must be confirmed, which probably corresponds to the liquidation of the contributions of the delivery men to Social Security plus another fine for breaking the law. In addition, when regularizing the contributions, assume these 10,600 workers on the payroll with seniority rights.
The company is the main one in a Spanish home delivery market that changed from the implementation a year ago of the ‘Rider Law’, one of the projects that Daz most boasts about. This regulation has among its objectives the outcrop of salaried workers who, however, appear as self-employed in the relationship with the companies for which they work.
Already the approval of the text divided the businessmen, who expressed their differences in CEOE. On the one hand, native digital companies in this market such as Glovo itself, which ask for special treatment. On the other hand, the long-standing delivery companies associated with UNO, which are already as digital as the native ones but which have employees, not false self-employed workers, were against discrimination in favor of delivery companies.
Glovo, Uber Eats, Stuart, Just Eat… they had to adapt their business model to the new law or leave the market, as did Deliveroo, who did not find a way to do business by absorbing the delivery men as a staff or subcontracting a company that would employ them. He left Spain last November with a fleet of delivery men that could reach 3,800 workers.
Accelerating the withdrawal of companies unwilling to comply with the law has not been the only effect of the ‘Rider Law’. It has also configured a legal framework that has promoted the consolidation of businesses. The costs involved in delivering with contracted personnel change profitability and the legal relationship with the workforce, so that digital delivery companies no longer have a structure as light as the one they presume. Last July the German group Delivery Hero was made precisely with Glovo, valuing it at 2,300 million euros.