Economy

Spanish labor law causes labor shortage, says Uber

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A Spanish law passed last year, which forces app companies to hire couriers, has caused a labor shortage as many prefer to remain self-employed and work for rivals that flout the regulation, Uber Eats said on Tuesday. .

The Spanish branch of Uber’s food delivery division on Tuesday published an open letter to the Ministry of Labor complaining that contracts offered to self-employed couriers failed to retain enough to guarantee their services.

“We didn’t find enough couriers because they prefer to work on their own with Glovo, (…) the only company that allows it, against the Delivery Law,” Uber Eats said, referring to the May 2021 decree, in which companies must enter into formal employment contracts to protect delivery workers.

A Glovo spokesperson said the company, which was acquired by Delivery Hero, had not broken any laws and had taken steps to ensure compliance.

The Labor Ministry said it required all platforms to comply with the new law. “Most digital platforms respect this rule,” the ministry said, without naming the names of companies that did not adhere.

The Spanish decree, backed by unions and business associations, was met with skepticism by several motorcycle associations and labor experts, who said the new law did not completely resolve the situation.

Uber Eats said couriers prefer flexibility to focus on lucrative self-employment hours than the best social protection employment contracts, but which come with requirements to work less lucrative hours.

sheettransport appUberUber Eats

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