Lieferando: En Route to Strike Cities?

According to the German Food, Beverages, and Catering Union (NGG), more than 100 employees of the delivery service Lieferando in Hamburg walked off the job over the weekend.

The NGG had called for a 36-hour strike – the longest in the company's history. »I am very satisfied with the turnout«, said NGG union representative Mark Baumeister when I talked to him. Lieferando employs around 500 people in Hamburg.

The NGG has been demanding a collective agreement for the company's approximately 6000 employees nationwide for two years. However, the parent company Just Eat Takeaway is blocking this, criticises Baumeister. »After the high inflation in the past years, a collective agreement is long overdue«, he says, explaining the reasons for the strike.

A collective agreement is all the more urgent because so-called »order bonuses«, which earned drivers several hundred euros a month, are set to be abolished in August. According to the union, this affects just under half of the couriers. A report by the German Bundestag states that these bonuses encourage risky behaviour on the roads. The NGG is calling for a legally compliant collective agreement instead.

Spin-offs and precarious jobs

The NGG also accuses Lieferando of building up a »shadow fleet«. Employees are being laid off and rehired by subcontractors under precarious conditions. After closing all its logistics operations in Austria, Lieferando also laid off around 500 drivers in Berlin. Companies such as Fleetlery are said to have rehired them on worse terms.

The subcontractor describes itself as a »partner for temporary work and temporary employment in the courier service«. Trade union circles say that such service providers sometimes pay wages in cash, violate the minimum wage and do not announce working hours. Fleetlery did not respond to a request for comment.

The NGG suspects that Lieferando's actions are part of a greater attempt to circumvent the EU Platform Directive, which is to be transposed into German national law by December 2026. The directive requires that platform companies are liable for subcontractors and that employees are automatically considered permanent employees if certain criteria are met. »To get around this, Lieferando relies on work contracts and temporary work«, criticises Baumeister.

Company rejects accusations

A spokesperson for Lieferando rejected the criticism when asked. The accusation that employees are being laid off and rehired by subcontractors under worse conditions is »grossly misleading«, they said. The company does not pass on contact details and has not laid off drivers in Berlin »to any significant extent.«

Regarding the loss of bonuses, the company explained that most drivers were on bicycles and would not be affected. They earned an average of over 14 euros per hour in Germany, which was above the minimum wage in all cases. In addition, an agreement for a new bonus model had been presented to the works councils — but not has not been approved.

No cooperation with the union?

NGG union representative Baumann disagrees: job cuts are not just about layoffs, but also about expiring fixed-term contracts. Furthermore, he says, the claim that there is a tabled agreement on bonuses ready to be signed is false. He emphasises that the union is responsible for such negotiations, »not the works councils«. According to NGG, Lieferando refuses to cooperate with the union.

When asked about the demand for a collective agreement, the company stated that this would exacerbate competitiveness. »Lieferando is currently the only food delivery platform with a direct employment model on the market.« With a collective agreement, even fewer providers would hire directly, at the expense of drivers' rights and wages across the industry, the companies’ statement said.

Acknowledging this, the trade union is therefore proposing a generally binding collective agreement to set standards for the entire industry. It has already consulted politicians, who seem to support the proposal. The Federal Ministry of Labour can declare collective agreements generally binding by decree so that they apply to the entire industry.

Stable economic situation and takeover

Just Eat Takeaway increased its adjusted pre-tax profit (EBITDA) in Northern Europe by five million euros in 2024. The region includes countries such as Germany, Poland, and the Netherlands, with Germany being the largest market. User numbers remained stable at 30 million. Despite its profitability, however, the company's financial leeway is limited.

Currently, Just Eat Takeaway is facing a takeover by South African Delivery Hero major shareholder Prosus. The deal, worth 4.1 billion euros, is expected to be completed by the end of the year. Critics fear further restructuring at the expense of employees.

Meanwhile, the NGG strike wave continues. »Hamburg is just the beginning. Lieferando makes most of its profits in the big cities«, announced union secretary Vincent Orth. »We are making them our strike cities.«

The article was first published in German in the daily newspaper nd.Der Tag. (Opens in a new window)