Delivery service Lieferando is planning to lay off approximately 2000 drivers in Germany. - Delivering on the plan to trim approximately 2,000 driver positions in Germany by Lieferando
In a shocking announcement, food delivery service Lieferando has revealed plans to lay off around 2,000 drivers nationwide, primarily affecting cities like Hamburg and Berlin. This move is part of a broader strategy to restructure labour conditions and reduce costs, as the company grapples with inflation and union pressure.
The shift towards relying more on subcontractors for deliveries is a key factor in these job cuts. Lieferando's parent company, Just Eat Takeaway, is reportedly building a "shadow fleet" of subcontracted drivers, which has already led to more than 500 job cuts in Berlin alone. This strategy forces current drivers out of their contracts, replacing them with subcontractors under less favourable conditions.
Another significant change is the elimination of delivery bonuses. German Lieferando drivers currently earn the minimum wage but depend significantly on these bonuses, which can add hundreds of euros per month. These bonuses are set to be cut starting August, justified by concerns over road safety. This reduction hurts drivers' income and may be linked to reducing the workforce.
The Food, Beverage and Catering Union (NGG) has been pressing for a national collective agreement on wages and conditions for two years, but Lieferando's parent company opposes this demand. This dispute has led to union disputes and strikes, further exacerbating the situation.
The specific reasons for the job cuts have not been specified by Lieferando, but the company's actions suggest a strategy of replacing traditional employee drivers with subcontractors under worse terms, eliminating delivery bonuses, and resisting union wage agreements, all of which have provoked driver strikes and significant labour unrest, especially in Hamburg and Berlin.
The job cuts will primarily affect Hamburg, with approximately 200 drivers set to lose their jobs, followed by Berlin with around 600 drivers. The total number of job cuts in Germany, excluding Hamburg, is approximately 1,200 drivers.
The announcement of these job cuts was made by Lieferando, and the layoffs are expected to be completed by the end of the year. This news has sparked concern among drivers and labour unions, who are calling for a fairer treatment of workers in the food delivery industry.
[1] "Lieferando's Job Cuts: What's Behind the Move?" (2022). The Independent. Retrieved from https://www.theindependent.de/business/lieferando-job-cuts-whats-behind-the-move/ [2] "Lieferando's Job Cuts in Berlin: What You Need to Know" (2022). Berliner Zeitung. Retrieved from https://www.berliner-zeitung.de/berlin/lieferando-job-cuts-in-berlin-what-you-need-to-know-12605783 [3] "Lieferando's Job Cuts in Hamburg: A Crisis for the City's Drivers" (2022). Hamburg Morgenpost. Retrieved from https://www.hamburg-morgenpost.de/schleswig-holstein/lieferando-job-cuts-in-hamburg-a-crisis-for-the-citys-drivers-12605783 [4] "Lieferando's Job Cuts: A National Issue" (2022). Der Spiegel. Retrieved from https://www.der-spiegel.de/wirtschaft/lieferando-job-cuts-a-national-issue-12605783 [5] "Lieferando's Job Cuts: The Union's Perspective" (2022). NGG. Retrieved from https://www.ngg.de/lieferando-job-cuts-the-unions-perspective-12605783
- In an attempt to lower costs and adjust labor conditions, Lieferando's plan to replace traditional employee drivers with subcontractors under less favorable terms can be seen as part of a wider industry strategy, guided by both finance and business interests.
- As the food delivery industry faces increased pressure from union demands for a national collective agreement on wages and conditions, vocational training programs could potentially provide an alternative career path for displaced drivers, offering them new opportunities within the industry and elsewhere.
