A labor court in Madrid, Spain, has ruled that Amazon, which uses a delivery app as drivers for 2,000 workers, is forcing Amazon to use the app to control delivery work and payment schedules is a violation of labor law. Adjudicated on the 3rd.
The Madrid Labor Court ruled that under the 2021 'Riders Act', which classifies food delivery riders as employees of the digital platform on which they work, Amazon's e-commerce Spanish subsidiary "assumes the authority to make all decisions concerning the service, execution and remuneration". It has ruled that Amazon can recover payments due on behalf of drivers by a government agency that has been determining "conditions, days, hours and duration of work".
The ruling is the result of a 2019 labor inspection at an Amazon facility, the largest US tech company, and a subsequent lawsuit filed by the Spanish social security agency, the Associated Press reported on the 5th.
The Associated Press said, "Amazon has long argued that Flex is not a delivery service per se, but an intermediary platform between Spanish freelance delivery workers and customers." ", it was reported.
The Spanish Supreme Court ruled in 2020 that Barcelona-based food delivery app Glovo was 'illegal' for treating 'riders' as self-employed, and in March 2021, the Socialist Coalition Government issued a 'guaranteeing food delivery riders as employees of a digital platform'. The Rider Act was enacted.
Spain's UGT union told the Associated Press that the Amazon Madrid ruling "is another step forward in jurisprudence as a remedial mechanism for new ways of working with apps."
Spain's Labor Ministry fined food delivery app Glovo 57 million euros ($62 million) for labor law violations in December last year.
Globo has since signed a contract with the local government of Madrid to deliver food to vulnerable people in the city.
The Ryder Act enforces groundbreaking requirements that mandate platform business companies such as Glovo and Deliveroo to hand over information about how algorithms and artificial intelligence systems operate in job assignments and performance evaluations to workers' legal representatives.
At the time the law was enacted, Labor Minister Yolanda Díaz said: "This new law is 'pioneering' and is part of Spain's 'modernization of the labor market', updating the regulations according to technological advances to ensure that workers' rights are maintained." It said on March 3 last year that the Rules Act provision that discloses how the system works "disables algorithmic punishment."
In the spread of the so-called ‘gig economy’ system from the United States, the legal guarantee of disclosure of algorithmic information, which has a decisive effect on the relationship between companies and workers, began most quickly in Spain.
A month earlier, the UK's highest court had put the brakes on the ride-hailing conglomerate, ruling that Uber drivers should be classified as "workers" rather than self-employed.
The Spanish government, along with the country's major business associations and trade union federations, agreed to a new law, but the new law has been thrown into chaos again by digital platform associations that provide food delivery services and some riders who prefer the flexibility of self-employment. The judgment put an end to this.
The Service Platforms Association objected in a statement at the time, calling the legal provisions on disclosure of algorithms “a measure that will undoubtedly have a very negative impact on the development of Spain’s digital economy” and “an attack on the most fundamental principles of freedom to do business and intellectual property rights”. did.
In a statement to the contrary, London-based delivery app company Deliveroo called on the Spanish government to reconsider, saying it would "reduce riders' jobs, harm the restaurant sector and limit the areas in which the platform can operate".
Uber, the operator of America's largest Uber Eats service, said in a statement at the time that it "is committed to increasing work standards and providing more benefits to independent workers while maintaining flexibility and control."
Spain's enactment of the 'Rider Law' led to thousands of courier drivers across Spain protesting demanding 'allowance to remain independent', and in September 2020, the Spanish Supreme Court ruled against the case brought by all of Glovo's riders that "food delivery riders are self-employed". It was legalized on March 11, 2021, ruling as “a non-employee”.
Coupang, which imitated Uber Eats, was listed on the New York Stock Exchange, saying, “Platform workers in charge of delivery are classified as independent operators and the government recognized them as workers,” and “Coupang Flex and Eats delivery workers are not workers under the Labor Standards Act.” It was specified in the document and reported in February 2021.
In the initial public offering, Coupang paid US$27.64 million (30.5 billion won) for stock options worth US$27.43 million to Tuan Pam, chief technology officer (CTO) from Uber in the United States, and used the Uber-style platform delivery system to provide “active customers ( active customer)' system, reporting delivery workers as independent operators and introducing the Uber system as it is. <Coupang deliveryman’independent contractor judgment’ reported to the New York Stock Exchange, refer to February 14, 2021>
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