Menu
Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

Union Deal Unlikely To Stop Criticism Of Deliveroo’s Gig Economy Model


Deliveroo Stock Investing FTSE 100 IAG Barratt Suncor AstraZeneca JPMorgan S&P 500 Fortive Petrofac Alphabet Amazon Chevron Phoenix Group Sprouts Farmers Markets Vistry 52-Week Lows Financial Markets Shell Buy Signals earnings NYMARKET:SPY worst performing large cap stocks in 2021

“By striking an agreement with the GMB, Deliveroo PLC (LON:ROO) is hoping to ride away from rising concerns about its reliance on the gig economy model, but this could be wishful thinking. The delivery company is on a fresh PR collision course over this deal. The IWGB union which represents couriers is calling it a cynical and underhand ploy to undermine the appeal it’s bringing to the Supreme Court in the case it’s fighting for statutory collective bargaining on behalf of Deliveroo contractors. Under the GMB agreement Deliveroo promises to give self-employed contractors guaranteed minimum earnings and will negotiate with the union every year on issues like safety, security, wellbeing and diversity but collective bargaining will only be voluntary.

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Q1 2022 hedge fund letters, conferences and more

Deliveroo's Deal With GMB

Delivery on demand clearly requires flexibility and the business models have developed around offering exactly that. Now at a time when the pressures of competition and input costs are intensifying,  Deliveroo and Uber are trying to bring up the drawbridge and deflect the arrows being aimed at their gig economy model by reaching these ‘recognition lite’ agreements. The compromise deal with the GMB may placate some concerns but challenges to working practices at the companies are likely to continue, particularly as the cost-of-living crisis mounts and couriers see earnings eroded by inflation. This is likely to be why there was a lukewarm reaction to this deal from investors, with shares still down 1% on the day and down 56% year to date."

Article by Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown


About Hargreaves Lansdown

Over1.7 million clients trust us with £132.2 billion (as at 30 April 2022), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

Updated on


Source valuewalk

Like: 0
Share

Comments