Spain will pass legislation granting workers rights to workers and unions in the country’s gig economy, with much greater impact on how the gig economy functions.
Labor Minister Yolanda Diaz said on March 11 that the platform’s employees would be granted worker status, while unions would have access to the algorithms that companies like Uber use to manage their workforce. This will enable them to prevent workers from receiving low wages when the demand for their services is low and to monitor working conditions.
“We will be the first country in the European Union to legislate on this issue in this ambitious way,” Diaz said. These workers, she added, “will be workers enjoying all the associated rights. And social protection that they do not enjoy now. “
The legislation will overturn a ruling by Spain’s Supreme Court last September that people who worked for Barcelona-based food delivery app Glovo were employees, a decision that could enable those employees to obtain official contracts and benefits.
“It would make it possible, as it currently is, to avoid algorithmic penalties for employees who work in certain time periods, or performance improvements that could be biased, or even just the fact of a promotion or a strike,” Diaz said.
The party’s economy companies criticized the advertisement. Glovo accused the ministers of “creating barriers and creating additional difficulties for services that have served as the life support system” during the coronavirus pandemic.
Sasha Michaud, co-founder of the platform, said Spain had taken a more radical stance than other EU governments, but acknowledged that “regulation is necessary”. “The platforms and staff have not been approached to be part of the solution,” he added.
Uber has claimed that it wants users of its platform to get more permissions, but warned that the proposals would wipe out the gig economy, saying: “We want to work with all relevant parties across the country to improve freelance rather than eliminate it.” “We are fully committed to raising the bar and providing freelancers with greater benefits while remaining flexible and in control.” It stated that a large proportion of temporary jobs in the economy will disappear in the face of the changes.
According to Reuters sources, Deliveroo and Uber Eats are investigating alternatives such as outsourcing or using temporary recruiters to bypass legislation that could affect their business model.
Once the legislation is ready for cabinet approval – something not thought to be imminent – Diaz said companies will have 90 days to make the necessary changes. However, legislative changes must be approved by the Spanish Parliament.
Over the past month, there have been two major developments regarding the gig economy: The European Union’s executive body, the European Commission, announced a worker rights advice on the platform likely to lead to legislation, and the UK Supreme Court ruled that Uber’s employees are workers with disabilities. Blue collars, not blue collar, self-employed. Legal battles similar to those in the United Kingdom took place in France, Italy, Germany and the Netherlands.