Fairwork Austria Ratings 2022: Labour Standards in the Platform Economy - Labour Standards in the Platform Economy
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Labour Standards in the Platform Economy | 1
Fairwork Austria
Ratings 2022:
Labour Standards in the
Platform Economy
2 | Fairwork Austria Ratings 2022
Executive Summary
This is the first Fairwork report for Austria. The report covers
six digital labour platforms in four sectors (food delivery,
grocery delivery, ride hailing, and cleaning work), rating them
against the five Fairwork principles – fair pay, fair conditions,
fair contracts, fair management, and fair representation.
In Austria, a country with a strong on the platforms. Although further minimum earnings, the scores
tradition of social partnership, the rise research is needed here, we theorise took into account not only the
of the platform economy demonstrates that the fact that the majority of amount received via the platform
some peculiarities, such as a high workers are from migrant backgrounds for hours worked, but also the
collective bargaining coverage rate, reproduces the invisibility and lack of costs incurred by the worker for
which encompasses virtually all recognition of platform work – as is the providing task-specific equipment
the sectors included in this report. case in comparable fields such as the and other work-related costs. The
Nonetheless, in some sectors (bogus) logistics sector.2 scores also factored in waiting
self-employment is used to evade times between jobs. Some
these agreements. At the same time, This report, which documents the platforms that employ workers
the platform economy highlights a findings of the first study of the on a free service contract, self-
segment of the labour market that is Fairwork project in Austria, also employment, or subcontracting
characterised by low union density, low presents an exploratory account of model do not meet this basic
earnings and increasingly precarious the Austrian platform economy and its threshold if they do not have a
working conditions, even in the context transformation during the COVID-19 (sufficiently high) earnings floor,
of a corporatist welfare state like crisis. With this, we hope to contribute or if they do not actively monitor
Austria. to a better understanding of working subcontractors in terms of fair
conditions on different digital labour pay for their workers.
In the context of the COVID-19 platforms in Austria. Furthermore,
pandemic many of these sectors we aim to contribute to the ongoing For the advanced point in this
flourished, resulting in a growing discussion in the European context principle, only one platform
number of workers taking up jobs on the effective regulation of the could show that it provides
on digital labour platforms. At the platform economy to improve income hourly earnings that go beyond
same time, income and working and working conditions for all platform the minimum earnings threshold
conditions in the platform economy workers. mentioned above, and that are on
have remained the same or worsened. a par with a living wage threshold
Platform workers are, thus, part of Key Findings ensured by collective bargaining
the “underrated high performers” agreements.
(verkannte Leistungsträger*innen) as � Fair Pay: Only three platforms
the sociologists Nicole Mayer-Ahuja in Austria could evidence that � Fair Conditions: There are
and Oliver Nachtwey have termed they provide earnings to all numerous risks platform workers
them: members of a new service class their workers that exceed the face in the course of their work,
whose work is directly related to the minimum earnings threshold. As ranging from road safety issues,
reproduction of labour power and there is no statutory minimum handling harmful materials, to
social relations, and who are thus of wage in Austria, the reference is assaults and violence. Four of the
central importance for contemporary the at-risk-of-poverty threshold platforms were able to evidence
capitalism, but who do not receive the which is also a common indicator that they take reasonable
social and financial recognition they for in-work poverty (“working measures to protect workers
deserve.1 Even the COVID-19 crisis, poor”).3 More precisely, workers’ from risks that arise on the job. In
which briefly made the work of, for gross earnings in 2021 should particular, many platforms were
example, food delivery or care workers at least amount to 1,616.16 able to evidence some form of
more visible and hence recognised, EUR/month gross or 9.32 EUR/ COVID-19 response, including
did little to alter the conditions of work hour gross. When assessing providing personal protective
equipment to workers. Some
Labour Standards in the Platform Economy | 3
platforms also demonstrated that awarded the point. appeal disciplinary actions
they mitigate task-specific risks and other important decisions.
by accident prevention measures For the second threshold, Nevertheless, despite the
like protective clothing, online only one platform was able to prevalence of migrant workers
tutorials on safety, or on-site evidence that workers aren’t in the Austrian platform
training. faced with unfair clauses. economy, only a few platforms
Our findings indicate that could evidence to have anti-
Platforms which provide (all) their platforms using a subcontracting discrimination policies. Moreover,
workers with an employment model rarely monitor their their effectiveness to address
contract also enable them subcontractors vis-à-vis working discriminatory behaviour by,
to access paid sick, holiday, conditions, and whether they for instance, subcontractors
and parental leave options meet the necessary industry and customers, and to promote
as indicated by the governing standards (for example, “fleet inclusion, remains questionable.
national laws. However, platforms partners” in the ride-hailing
that work on a self-employment sector). In some cases, platform � Fair representation: Freedom of
(Selbstständigkeit) or free contracts and terms and association and the possibility
service contract model (Freier conditions also contain outright to express collective voice is a
Dienstvertrag) fail to provide unfair clauses, for example fundamental right for all workers.
these measures (in an equivalent excluding all liability. However, while three platforms
form). Hence, only one platform could point to some mechanisms
was evidenced to provide a safety � Fair Management: Most for workers to express their
net to its workers in line with digital labour platforms in voice, at the time of writing, none
the Fairwork principle of Fair Austria could demonstrate of them fully recognises and
Conditions. that they have channels for cooperates with an independent
workers to communicate with collective body that represents all
� Fair Contracts: Platforms in a human representative and, of its workers, regardless of their
Austria tend to do well when in many cases, these channels contractual status. Hence, there
it comes to meeting the first are considered reliable and is still much to improve on this
threshold of the Fair Contracts effective. However, only three issue in Austria.
principle. All platform companies of these platforms could show
have clear and accessible terms they also provide workers with
and conditions. Hence, they were processes to meaningfully
Fairwork Austria 2022 Scores*
Lieferando 8
ExtraSauber 5
Mjam 4
Alfies 2
Uber 2
Bolt 1
* Scores are out of 10.
4 | Fairwork Austria Ratings 2022
Editorial:
Platform Work in a
Corporatist Welfare
State
As in many countries, in Austria the platform economy has
developed dynamically against the backdrop of COVID-19. This is
particularly evident in food delivery, where established platform
companies have been able to expand significantly during the
pandemic, and in grocery delivery, with several new players
entering the rapidly expanding market. In the transportation
sector, by contrast, lockdowns and a reduction in international
tourist numbers led to an overall decline.
Pandemic apart, there are a number dynamics, we have for the first time undocumented work) on the other.
of legal developments ongoing which assessed the working conditions of Sometimes this leads to employees
aim to minimise the risks workers digital labour platforms in Austria working in the same sector or even
face in the platform economy. Central using the Fairwork principles and for the same company alongside
to this is a directive presented by the methodology. The analysis presented persons working under a free service
EU Commission to improve working here focuses on six platform contract or self-employed persons.
conditions in platform work, which companies – branches of transnational A central issue that arises from this
was introduced in December 2021 corporations as well as locally-owned situation is the difficulty of trade
and which must be implemented start-ups – in a number of different union organisation and collective
at a national level within two years sectors, namely, food delivery, grocery representation of workers interests
of its adoption at the EU level.4 delivery, ride-hailing, and cleaning when employment types and contracts
Key objectives of these regulatory work. are so different, and so varied. Only
efforts are to combat bogus self- in the food delivery sector have good
employment, to bring about greater The results of this first evaluation approaches (e.g. works councils) been
transparency and fairness in the use indicate that geographically-tethered established so far, which is thanks to
of algorithmic management, and to platform work is characterised by the past trade union efforts and activist
introduce comprehensive information great heterogeneity. Depending on engagement in the sector.
requirements. Even before its national the individual business models of
implementation, the effects of the the platforms, there are jobs based Structurally, platform work remains a
proposal are already noticeable, on regular employment contracts on largely low-income form of work. In
including an increased sensitivity of the one hand, and various forms of view of this, it is not surprising that we
platform companies to issues such non-standard work (e.g. fixed-term have found an above-average share
as employee status or algorithmic contracts, marginal employment of migrant workers in almost all the
management. [“Geringfügige Beschäftigung”], platforms studied. This is in line with
[bogus] self-employment), the segmented nature of the Austrian
Against the backdrop of these and informal employment (e.g. labour market.5 The dominance
Labour Standards in the Platform Economy | 5
Moritz Mairinger / Unsplash
of female workers in sectors that constructive dialogue we have started
remain invisible, especially in the with these platform companies, and
cleaning sector, can also be seen as hope that through our research we
an expression of a persistent gender- can motivate more companies to
based segregation. take up their responsibility for a fairer
platform economy. We expect that
Despite this being only the first year of this first report will also feed into
our study, we have already been able current regulatory efforts in Austria,
to initiate positive changes to working and will serve as a reference for the
conditions in the Austrian platform various stakeholders in the sector.
economy. For example, as a result of Most importantly, we hope that at the
our exchanges, Mjam, a food delivery end of the day, the platform workers
platform, has developed an audit themselves will benefit from these
process for its subcontractors and will efforts.
begin implementation in 2022. The
same is true for ExtraSauber, a platform
operating in the cleaning sector,
which also established a new auditing
procedure for its subcontractors as a
result of engaging with us, and which
has further developed its terms and
conditions so that they now explicitly
refer to anti-discrimination (see the
“Impacts and Next Steps” section of
this report).
We would like to continue the
6 | Fairwork Austria Ratings 2022
Contents
04 Editorial: Platform Work in A
Corporatist Welfare State
08 The Fairwork Framework
10 Overview of the Austrian platform
economy
13 The Legal Context: Everything
depends on employee status...
14 Fairwork Scores
16 Platform in Focus: Lieferando
19 Platform in Focus: ExtraSauber
22 Workers’ Stories
23
Theme in Focus: A new era of
responsibility and accountability in
the making?
Fairwork Austria team 25 Impact and Next Steps
Markus Griesser
Leonhard Plank
Laura Vogel
28 Appendix: Fairwork Scoring System
Martin Gruber-Risak
Benjamin Herr 32 Credits and Funding
Shelly Steward
Funda Ustek-Spilda
Mark Graham 34 Endnotes
Labour Standards in the Platform Economy | 7
01 The five
principles
Fair Pay
Workers, irrespective of their
employment classification, should
earn a decent income in their home
jurisdiction after taking account of
work-related costs. We assess earnings
according to the mandated minimum
wage in the home jurisdiction, as well as
the current living wage.
Fair Conditions
Platforms should have policies in place
to protect workers from foundational
risks arising from the processes of work,
and should take proactive measures
to protect and promote the health and
safety of workers.
Fair Contracts
The Fairwork Terms and conditions should
be accessible, readable and
comprehensible. The party contracting
Framework
with the worker must be subject to
local law and must be identified in the
contract. Regardless of the workers’
employment status, the contract is free
of clauses which unreasonably exclude
liability on the part of the platform.
Fairwork evaluates the working Fair Management
There should be a documented process
conditions of digital platforms and through which workers can be heard,
ranks them on how well they do. can appeal decisions affecting them,
and be informed of the reasons behind
Ultimately, our goal is to show that those decisions. There must be a
clear channel of communication to
better, and fairer, jobs are possible workers involving the ability to appeal
management decisions or deactivation.
in the platform economy. The use of algorithms is transparent
and results in equitable outcomes for
workers. There should be an identifiable
To do this, we use five principles that digital platforms should and documented policy that ensures
comply with in order to be considered to be offering ‘fair work’. equity in the way workers are managed
We evaluate platforms against these principles to show not only on a platform (for example, in the hiring,
what the platform economy is, but also what it can be. disciplining, or firing of workers).
The five Fairwork principles were developed at a number of multi-
stakeholder workshops at the International Labour Organisation. Fair Representation
To ensure that these global principles were applicable in Platforms should provide a documented
the Austrian context, we then revised and finetuned them in process through which worker voice
consultation with platform workers, platforms, trade unions, can be expressed. Irrespective of their
regulators, academics, and labour lawyers in Vienna. employment classification, workers
should have the right to organise in
Further details on the thresholds for each principle, and
collective bodies, and platforms should
the criteria used to assess the collected evidence to score
be prepared to cooperate and negotiate
platforms, can be found in the Appendix.
with them.
8 | Fairwork Austria Ratings 2022
02 Methodology
overview
The project uses three approaches
to effectively measure fairness at work.
Desk Research
The process starts with desk research to
ascertain which platforms are currently
operating in the country of study. From
this list the largest and most influential interviews enable the Fairwork
platforms are selected to be part of the researchers to see copies of the
ranking process. If possible, more than contracts issued to workers, and learn
one platform from each sector (such about platform policies that pertain to
as ride-hailing or food delivery) are workers. The interviews also allow the
included to allow for comparisons within team to confirm or refute that policies
the sector. The platforms included or practices are really in place on the
in the ranking process are both large platform.
international ones as well as national/
regional ones. Desk research also flags Workers were approached using a
up any public information that could range of different channels, including
be used to score particular platforms approaching them by ordering a service
(for instance the provision of particular on the platform on which they operate,
services to workers, or ongoing or asking them to participate in the
disputes). research at known worker meeting
points. In a few cases snowball
Platform Interviews recruitment from prior interviews
was used or platforms were asked
The second method involves to assist with contacting workers for
approaching platforms for evidence. interviews by posting interview ads
Platform managers are invited internally. The interviews were semi-
to participate in semi-structured structured and made use of a series of
03
interviews as well as to submit evidence questions relating to the 10 Fairwork
for each of the Fairwork principles. This (sub)principles. In order to qualify for How we
provides insights into the operation the interviews, workers had to be over
and business model of the platform, the age of 18. Due to the COVID-19 score
while also opening up a dialogue pandemic, all interviews were
Each of the five Fairwork principles is
through which the platform could agree conducted either via video call or face-
broken down into two points: a basic
to implement changes based on the to-face outdoors (where interviewers
point and a more advanced point that
principles. In cases where platform were PCR tested). The vast majority of
can only be awarded if the basic point
managers do not agree to interviews, we interviews were done in Vienna, either
has been fulfilled. Every platform
limit our scoring to evidence obtained in German or English.
receives a score out of 10. Platforms
through desk research and worker
interviews. Putting it all together are only given a point when they
can satisfactorily demonstrate their
Worker Interviews This threefold approach provides a
way to cross-check the claims made
implementation of the principles.
The third method is interviewing by platforms, while also providing the Failing to achieve a point does not
platform workers directly. A sample opportunity to collect both positive necessarily mean that a platform
of 6-10 workers are interviewed for and negative evidence from multiple does not comply with the principle in
each platform. These interviews do not sources. Final scores are collectively question. It simply means that we are
aim to build a representative sample. decided by the Fairwork team based on not – for whatever reason – able to
They instead seek to understand the all three forms of evidence. Points are evidence its compliance.
processes of work and the ways it only awarded if clear evidence exists on
each threshold. Further details on the Fairwork
is carried out and managed. These
Scoring System are in the Appendix.
Labour Standards in the Platform Economy | 9
Background:
Overview of the
Austrian platform
economy
Austria has one of the strongest traditions of “social partnership”
in Western Europe. Social partnership is defined as a neo-
corporatist arrangement between the state, trade unions and
employers’ organisations, in which industrial or labour relations
play a key role.6 While balancing the interests between capital and
labour is a fundamental part of social partnership, it also goes
further by including labour and business actors in economic and
social policy making.7
Despite its declining importance the high collective bargaining coverage third pillar is works councils, which
in policy making in Austria, due to is the statutory “erga omnes effect” are statutory organisations of co-
Europeanisation processes and the which ensures that all employees with determination at the company or plant
anti-union policies of recent centre- an employer bound by a collective level.12
right governments, social partnership agreement are covered, irrespective of
is characterised by a high degree of their union membership. Could Austria’s neo-corporatist labour
stability.8 This stability manifests relations serve as a model for how to
for instance in Austria’s collective Organised labour in the context of deal with the challenges posed by the
bargaining coverage rate of around 98 social partnership rests on three platform economy?
percent in the private sector.9 This high formally independent but closely
coverage rate is an indirect result of the intertwined pillars. The first pillar is
compulsory membership of nearly all the ÖGB, which serves as the umbrella Social partnership and
organisation of currently seven trade
employers in the Austrian Chamber of
Commerce (WKO), because collective unions, each of which organise workers the platform economy
bargaining agreements are legally based on their employment category
Despite the high stability of
binding for WKO members. All in all, (e.g. blue- or white-collar workers) or
social partnership, crisis-driven
more than 450 collective agreements10 sectoral affiliation (e.g. construction
developments have brought about
are negotiated every year by the or transportation sector). The second
a far-reaching transformation of the
industry-level organisations of the pillar is the Chamber of Labour, which
Austrian labour market since the
WKO and the Austrian Trade Union is the mandatory interest organisation
1980s. While unemployment is still
Federation (ÖGB).11 Another reason for of all private sector workers. The
10 | Fairwork Austria Ratings 2022
Stas Knop / Shutterstock.com
comparatively low, unemployment The rise of the platform economy transport business) has been raised to
figures have risen in the last few is closely interlinked with these the new 1,500 EUR level for a 40-hour
decades and there has been an developments. For example, most work week (14 times a year).19 It is
increasing spread of non-standard platform companies are operating also true for the passenger transport
forms of employment (e.g. part-time in sectors with a low union density business, where ride-hailing services
and temporary agency work).13 In and correspondingly low (minimum) like Uber or Bolt operate and where
2019, for instance, the unemployment wages. This can be partially explained the correlation between low union
rate was 4.5 percent, which was the by the lack of a statutory minimum density and low (minimum) wages is
lowest level since the end of the long wage in Austria. Rather, (minimum) particularly evident. Here, the union
recession after the financial crisis of wages are defined by sectoral membership rate is said to be less
2007/08. In 2020 the unemployment collective agreements and therefore than one percent and the collective
rate rose again to 5.4 percent, due vary from sector to sector, resulting agreement in 2021 defined a minimum
to the COVID-19 crisis. Meanwhile, in comparatively high intersectoral wage of 1,500 EUR per month gross
the share of non-standard workers income differentials. Against this for a 55-hour work week (14 times a
amongst all employees has remained backdrop, the ÖGB has intensified year). While this remains very low, it is
constant at around 33 percent.14 its efforts towards a cross-sectoral important to point to a strong increase
minimum wage policy since 1990s.17 In in minimum wages in this sector due
Together with the increased 2007 and again in 2017, ÖGB and WKO to the aforementioned cross-industry
internationalisation and tertiarisation signed cross-industry memoranda memorandum (2019: 1.285 EUR;
of the economy, these trends have according to which all collectively 2020: 1.350 EUR).20
fostered the consolidation and agreed minimum wages had to be
expansion of labour market segments raised, most recently to a minimum An additional downward pressure
with low-paid and precarious jobs, in level of 1,500 EUR per month (14 times on earnings is that many platform
which female and migrant workers are a year due to Christmas and holiday companies simply “escape”
overrepresented. Additionally, in some bonuses) by 2020 at the latest.18 collective agreement coverage and,
sectors, (bogus) self-employment is hence, minimum wage regulations,
used to evade the protective labour These memoranda have directly by replacing employees with
legislation and collective bargaining impacted Austria’s regulation of self-employed persons, be they
agreements. In this context, organised sectors that are of crucial importance free service contractors (Freie
labour has constantly lost ground.15 For for the platform economy. This is, for Dienstnehmer*innen) or (solo)
example, union density has fallen from instance, true of food and grocery self-employed (Einpersonen-
60.1 percent in 1960 to 26.3 percent delivery services, where the collectively Unternehmer*innen). Both types
in 2019.16 agreed monthly minimum wage (e.g. of contracts entail a more limited
for bicycle messengers or the small protection under labour legislation,Labour Standards in the Platform Economy | 11
such as sick leave, representation comparable conclusions regarding represent the employees but not the
by works councils or paid vacation. the EU 27-countries. For instance, free service contractors, which make
Delivery platform companies like according to a study of the European up around 90 percent of the workforce.
Mjam or Alfies employ a majority of Commission in 2018, 11 percent of
their workers as such free service the working-age population provided The second means by which organised
contractors while many “partner services via digital labour platforms labour has attempted to regulate
companies” of ExtraSauber are solo (though only 1.4 percent as main the platform economy is to cover
self-employed persons. activity).26 the emerging platform economy in
collective agreements. After years of
The economic effects of the COVID-19 debates that were mainly driven by
The rise of the crisis have massively impacted
Austria’s platform economy. Food
organised labour, in January 2020
the first collective agreement for
platform economy delivery and grocery delivery services bicycle couriers (Fahrradboten) came
expanded significantly during the into effect, covering, amongst other
The platform economy in Austria pandemic. Indeed, several new things, employed riders of the delivery
became a topic of public debates platforms in grocery delivery have platforms. Still, the majority of workers
in the mid-2010s with the arrival of sprung up in this increasingly are not covered by this agreement, as
digital labour platforms like Uber competitive market, where not only the sector is mainly characterised by
and Helpling.21 Nowadays, food large supermarket chains are involved, (bogus) self-employment.
delivery and ride-hailing services are but even Mjam – which usually delivers
dominated by a few multinational meals from restaurants to customers – Thirdly, organised labour is also
corporations. Just Eat Takeaway.com has now added grocery deliveries to its trying to improve working conditions
(in Austria: Lieferando) and Delivery business model. While workers in these by mobilising institutional power
Hero Holding GmbH (in Austria: sectors are facing new challenges, resources, for instance, by influencing
Mjam) dominate platform-based food especially the risk of infection, in other policy making processes. Most
delivery, while Uber and Bolt dominate sectors like ride-hailing services, many recently, this has happened in the
ride-hailing. On the other hand, in the have lost their jobs due to lockdowns, context of a far-reaching reform of the
empirically less investigated domestic social distancing and the decline of legal basis of ride-hailing platforms
work sector (cleaning, care work, etc.), tourism. in the taxi and hire car sector.28
multinational corporations like Helpling However, trade unions and their allies
and Book-a-Tiger closed their Austrian ultimately failed to ban the business
branch offices in the late 2010s,
creating opportunities for local start-
Regulating the model of Uber and others altogether.
Hence, ride-hailing platforms have
ups like ExtraSauber to thrive. platform economy continued to offer their services in
Several studies have suggested a “from below”? Vienna and other cities, albeit within
a legal context that has undergone
minor, albeit growing, importance several adjustments, primarily in terms
Recent attempts of organised labour
of the platform economy in Austria. of the fare system and qualification
to regulate the platform economy or
Nonetheless, available data is rare, requirements of drivers.
to fight against precarious working
and it varies due to a lack of clarity on
conditions have largely been oriented
technical definitions and application As these examples demonstrate, the
towards “traditional” neo-corporatist
of research designs.22 According to orientation of organised labour towards
patterns. Firstly, this is true for a
a Eurobarometer telephone survey, traditional neo-corporatist patterns has
series of conflicts and disputes
in 2016 only around two percent of been only partially successful.29 This
aimed at establishing works councils.
Austrian residents aged 15 years is true for food and grocery delivery
In 2017, food-delivery workers at
or older offer services via so called services and ride-hailing services, but
Foodora (now Mjam) established the
“collaborative platforms” (e.g. work probably even more so for platforms
first works council in the country’s
on digital labour platforms) at least in the field of cleaning work. Austrian
platform economy, supported by the
once a month.23 In contrast, a study trade unions have thus begun to
Austrian Transportation and Services
by the University of Hertfordshire from rethink their traditional orientation
Union “vida”. This was followed by
2016 found that around 13 percent towards a “logic of influence” in favour
the establishment of a works council
of the working-age population (18- of a new orientation towards a “logic
at Lieferando in 2019.27 However,
65) in Austria undertake platform of membership”, including within the
Lieferando has issues to recognize its
work at least once a month, most of platform economy.30 Corporatist social
works council to the full extent and
them as a side activity.24 While the dialogue strategies have therefore
filed a complaint against its election,
latter study has been criticised for been complemented by organising
with the outcome of the case still
overestimating the number of platform strategies, and self-organised
open (see the “Platform in Focus I”
workers in Austria,25 recent studies structures within unions like the so-
section of this report). At Mjam, the
on the European Union-level reached called Riders Collective have been
works council is legally only entitled to12 | Fairwork Austria Ratings 2022 The Legal Context: Everything depends on employee status… In Austria, platforms use different legal statuses when contracting with their workers – sometimes they are treated as employees, but more often they are considered to be self-employed. The full range of employee protections though, such as paid annual leave, sick pay, collective bargaining coverage (including minimum wages) and employee representation at the workplace level are only available for those working under an employment contract. Only a very limited number of statutes31 (and no collective agreements) apply to an intermediary category of persons, “who may be considered employee-like due to their economic dependence”.32 In Austria, exactly who is an bring cases of bogus self-employment split between employer and employee, employee is not very obvious. No to court – even though they would whereas self-employed platform statutory definition exists, but only be supported by the unions as well workers must take care of their case law, which is largely based on as by the statutory representation of insurance themselves, as platforms do doctrine.33 Accordingly, an employee interest, the Chambers of Labour. This not take any responsibility. is a person who is obliged by contract reluctance is related to a number of to perform, generally in person, reasons, including the fear of retaliation a service for someone else in a as well as the marginal and/or relationship of personal dependence transitory nature of their employment. (persönliche Abhängigkeit) or personal subordination.34 A variety of indicators In terms of social security protection, to assess this dependence have been there is actually no difference between developed: an obligation to work at different employment statuses, as specified times and in a specified place, platform workers enjoy the same level the right of the contractual partner to of protection (health insurance, old give orders, especially with respect to age and invalidity pension insurance), personal work-related behaviour and if they pass the marginal earnings integration in the partner’s operational threshold of 485.85 Euros (2022) organisation.35 Interestingly, no per month. Even workplace accident case law has yet been developed for insurance is provided for those with the employment status of platform marginal incomes. The legal status of workers. This is despite the fact that platform workers only influences the their legal status is not always very question of who pays contributions, obvious, and bogus self-employment and who administers the insurance. is a possibility.36 However, platform For employees and employee-like free workers are generally reluctant to service contractors, contributions are
Labour Standards in the Platform Economy | 13 Fairwork Scores Score (out of 10) Lieferando 8 ExtraSauber 5 Mjam 4 Alfies 2 Uber 2 Bolt 1 The breakdown of scores for individual platforms can be seen on our website: www.fair.work/ratings
14 | Fairwork Austria Ratings 2022
the principle thresholds, as it provides actions and other important decisions.
all its workers with an employment
contract which ensures them to access The advanced point assesses whether
sick pay, holiday pay, and parental equity in the management process is
leave options as stipulated by law. provided. While some platforms have
Fair Pay anti-discrimination policies in place
we could not (yet) see evidence as to
In order to obtain the basic point its effectiveness. Therefore, we could
associated with the at-risk-of-poverty not award this principle to any of the
threshold (defined as 60 percent platforms.
of median disposable income) for a
single-person household as stipulated Fair Contracts
by the EU Statistics on Income and
Living Conditions in 2021, platforms
guarantee that all workers earn at To be awarded the basic point for this
principle, workers need to be provided
least 9.32 Euros/hour gross after
costs (e.g. for equipment, vehicle, with clear and transparent terms and Fair Representation
and maintenance). Furthermore, it conditions. Moreover, contracts should
The basic point for this principle seeks
must be guaranteed, e.g. through an be accessible to workers at all times,
assurance of freedom of association
appropriate auditing procedure, that and every worker should be notified
and the expression of collective voice.
all workers (including subcontracted of proposed changes in a reasonable
Only three platforms (Lieferando, Mjam
ones) meet this threshold. Only timeframe. Furthermore, the party
and ExtraSauber) could be awarded
three platforms, namely, Lieferando, contracting with the worker must be
this point.
Alfies and ExtraSauber, could provide identified in the contract, and it must
evidence in this regard. be subject to the law of the place in The advanced point investigates
which the worker works (i.e. Austrian whether democratic governance is
To meet the advanced threshold, law). All platforms were awarded this supported. We could not award this
platforms guarantee that workers earn basic point. point to any platform in this scoring
at least the living wage in Austria after round.
costs. Here, the point of reference is The advanced point in this principle
the rates set by the sectoral collective can only be awarded if the contract
bargaining agreements for 2021. Only does not impose unfair terms, such
Lieferando was awarded this point. as excluding liability for negligence or
exempting the platform from liability
for working conditions. The contract
should also not include clauses which
prevent workers from effectively
seeking redress for grievances which
arise from the working relationship.
Fair Conditions Both standards must also be
guaranteed for the contracts between
The basic point for this principle is workers and subcontractors. Only
awarded if platforms have policies Lieferando was awarded this point.
and practices in place which show
that they are aware of task-specific
risks and take steps to protect their
workers. Measures for adequate,
responsible and ethical data
protection also need to be taken. Four
platforms (Lieferando, Mjam, Uber and
ExtraSauber) could show they meet the Fair Management
criteria for this principle.
This principle investigates the due
The advanced point is awarded if process for decisions affecting
workers have access to a safety net workers. Several platforms (Lieferando,
which adequately compensates for Mjam and ExtraSauber) could evidence
income loss due to inability to work, that there is a human representative
such as for reasons of illness or other to address workers’ queries, as well
emergencies. Only one platform as a documented process for workers
(Lieferando) could evidence to meet to meaningfully appeal disciplinaryLabour Standards in the Platform Economy | 15
Platform in Focus:
Lieferando Total
Principle 1: Pays at least the local
minimum wage after costs
Pays at least a local living
wage after costs
2
Fair Pay
POINTS
Principle 2:
Mitigates task-specific risks Provides a safety net 2
Fair Conditions
POINTS
Principle 3: Provides clear and
transparent terms and
Does not impose unfair
contract terms
2
Fair Contracts conditions
POINT
Principle 4: Fair Provides due process for
decisions affecting workers
Provides equity in the
management process
1
Management
POINTS
Assures freedom of
Principle 5: Fair association and the
expression of collective
Supports democratic
governance
1
Representation POINT
worker voice
Lieferando’s overall score 08
Lieferando is part of the listed company Just Eat Takeaway.com
N.V., established in 2020 as a result of a corporate merger of
Takeaway.com (founded in 2000 in the Netherlands) and Just Eat
(founded in 2001 in Denmark).37
The Austrian branch is headquartered hub riders with their own (or rented) in Austria earned around EUR 10
in Vienna and was founded in 2012 bicycles on the road.41 gross per hour (plus tips), which was
under the name Lieferservice.at. slightly above the collectively agreed
Initially it connected customers with Lieferando is the only delivery (minimum) wage of EUR 8.90 gross.
restaurants, but began offering food- platform in our study which provides Moreover, riders are entitled to various
delivery services in 2017.38 an employment contract to all its bonuses and special payments as
riders (i.e. riders are not free service employees, as defined in the collective
Currently, Lieferando is present contractors, solo-self-employed agreement, for instance Christmas
in seven Austrian cities. Its fleet workers, etc.), and it does not use and holiday bonuses (referred to as
consists of more than 2,000 riders, subcontractors. This implies that all 13th and 14th month wages in Austria)
thanks to the massive growth during riders must be employed in accordance (article XII of the KV). For non-hub
the COVID-19 pandemic.39 Most with the collective agreement riders, a kilometre allowance is added
of the riders can be recognised by (Kollektivvertrag, KV) for bicycle (0.24 EUR/km) to the calculated
their characteristic ‘pedelecs’40 with messengers.42 earnings, in line with the regulations
a Lieferando logo, and their orange of the collective agreement (article
delivery backpacks. Since January In terms of payment, our study
XVII of the KV). Finally, riders are
2021, there are also so-called non- shows that in 2021 Lieferando riders16 | Fairwork Austria Ratings 2022
also compensated for the use of their employment contract contains contract, leave must be applied for
private mobile phones (article XVII of provisions on data protection, including in writing “at least four weeks” in
the KV). specific measures for protecting the advance, and cannot be “granted
personal data of riders. Additionally, in certain calendar months” for
Lieferando was therefore able to score a data protection clause is attached operational reasons, which has been
point 1.1 and 1.2 for Fair Pay, as to the contract and handed out to the criticised by some riders for being
workers earn not just above the at-risk- riders. “super strict”.
of-poverty threshold, but also above
the collectively agreed minimum wage All things considered, Lieferando As already noted, Lieferando provides
in the food delivery sector. satisfies the requirements for point its workers with employment contracts
2.1. Nonetheless, in our worker (in English and German) which were
In recognition of the various job interviews several riders made an considered clear and comprehensible
hazards workers may encounter in interesting point about a concern they by our interviewees. Moreover,
the course of their work, Lieferando had for downloading the Lieferando contracts are accessible to workers at
provides protective gear to mitigate app to their private mobile phones. all times, since a copy of the signed
task-specific risks. This implies several For some, this evokes the feeling, as contract is handed over to the riders.
measures for accident prevention one rider put it, to have your employer
including, among others, the provision “always in your pocket”. Hence, point 3.1 and 3.2 of the Fair
of a bicycle helmet and other protective Contracts principle are also awarded.
clothing, and the obligation to wear As employees, Lieferando riders A particularly critical point in this
a helmet. Moreover, once a year, all are fully entitled to social rights, for context is, nonetheless, marked by the
workers must participate in riding example, workplace accident, health, fact that Lieferando abolished fixed-
safety training during working hours pension and unemployment insurance. term contracts in favour of permanent
and the platform takes a variety of They are also entitled to sick leave, ones in countries like Germany in
measures to protect workers against as regulated by the Continuation of 2021.43 In Austria, however, fixed-term
COVID-19, for example through Remuneration Act, to parental leave contracts are maintained, and this has
distribution of FFP2 masks and and to (at least) five weeks paid leave been criticised by many riders as it
disinfectants. a year. Lieferando is thus also awarded deprives them of the protection against
point 2.2 of the Fair Conditions dismissal and of long-term future
With respect to taking adequate, principle. prospects and planning certainties
responsible and ethical data protection associated with permanent contracts.44
and management measures, the However, according to the employment
Ratikova / Shutterstock.comLabour Standards in the Platform Economy | 17
With regard to the principle of Fair More precisely, Lieferando has filed
Management, our investigation a complaint with the Vienna Labour
confirms that there are different and Social Court in order to challenge
channels for riders to communicate the most recent election, arguing that
with human representatives of the established works council should
the platform (e.g. via in-app chat, be responsible for the whole country
telephone). Additionally, a ticket (i.e. all seven cities) and not only for
system is available in the Lieferando Vienna. However, while the outcome
app when workers need help with of the case is still to be decided, the
important matters, such as payment management has emphasised to us
issues. Furthermore, Lieferando has that “Lieferando Austria considers the
a multi-level system of warnings. cooperation with its current works
Riders are warned in writing for council to be constructive and also
various violations of official duties welcomes a future co-determination of
(e.g. unexcused absence from work), its riders by a works council.”
with the threat of termination only on
the third warning. If such warnings Against this backdrop, and considering
or terminations are perceived as that representatives of the Lieferando
unjustified, an appeal process is management and of the works
available to the riders, as they can council (as part of the industry-level
contact the works council. All points organisations of WKO and ÖGB)
considered, Lieferando is awarded participate in collective bargaining with
point 4.1. respect to the Collective agreement for
bicycle messengers, we award point
According to the management 5.1 to Lieferando. Point 5.2, on the
interview we undertook, Lieferando’s other hand, could be awarded in future
riders are characterised by a ratings as soon as the legal dispute
high degree of diversity, primarily has been resolved and the further
with reference to citizenship. The procedure clarified.
management takes into account this
diversity, as their communication
materials are supplied in German and
English (among other languages).
There are also anti-discrimination
guidelines included in the (company-
internal) Code of Conduct as well as in
their restaurant policy with cooperating
restaurants. In addition, Just Eat
Takeaway.com has an established
speak-up policy with clear rules
for investigating and sanctioning
discriminatory behaviour or assaults.
However, many of these policies are
new and they need to be more widely
publicised. Therefore, we would like
to observe how Lieferando succeeds
in making its existing approaches
practically effective before awarding
point 4.2.
Regarding the principle of Fair
Representation, there is a works
council at Lieferando in Vienna and
evidence suggests that the cooperation
between local management and
the works council works well so far.
However, the election of the new works
council has been appealed again, as
was the election of the old one in 2019.18 | Fairwork Austria Ratings 2022
Platform in Focus:
ExtraSauber
Total
Principle 1: Pays at least the local
minimum wage after costs
Pays at least a local living
wage after costs
1
Fair Pay
POINTS
Principle 2:
Mitigates task-specific risks Provides a safety net 1
Fair Conditions
POINTS
Principle 3: Provides clear and
transparent terms and
Does not impose unfair
contract terms
1
Fair Contracts
POINT
conditions
Principle 4: Fair Provides due process for
decisions affecting workers
Provides equity in the
management process
1
Management
POINTS
Assures freedom of
Principle 5: Fair association and the
expression of collective
Supports democratic
governance
1
Representation POINT
worker voice
ExtraSauber’s overall score 05
ExtraSauber is a platform for cleaning services, which was
founded in Vienna in 2014 by the Austrian start-up extrafrei
GmbH. Thanks to its steady growth over the past few years, the
platform is now present in six Austrian cities or regions. Moreover,
it has recently also expanded into Germany and Switzerland.45
Based on our interviews with the support team and the customers which a total price for the different workers
management, currently (with regard to are then advertised in an internal that are available for the job, which
the volume of orders) approximately pool. ExtraSauber charges 20 percent includes time spent travelling to and
one-third of the so-called “partner platform fees of the gross order value from the client (e.g. one hour per order
companies” are solo self-employed for either option. in the city). In order to do this, “partner
cleaners, while two-thirds are cleaning companies” (as part of the registration
companies with employees.46 Concerning the first and most common process) have to define their (a)
option of “standard cleaning”, availabilities (i.e. times when they can
Private customers have two different customers can order a cleaning at a be booked); (b) minimum prices (i.e.
options on ExtraSauber, namely, fixed price via the app. For this option, the minimum price an order must have
the “standard cleaning” of flats and they must provide information on the in order to be accepted); and (c) hourly
“special cleanings” (e.g. of “messy size and type of the flat (how many/ calculation rates for every worker.
flats”), where individual prices are which rooms, etc.).47 Based on this
negotiated between the ExtraSauber information, the algorithm calculates ExtraSauber sets a minimum thresholdLabour Standards in the Platform Economy | 19
for these hourly calculation rates. ergonomic cleaning techniques and on (“partner companies”) in regard to
Even though our evidence suggests the safe handling of harmful materials. imposition of unfair terms such as the
that the chosen rates are usually Additionally, the cleaning products exclusion of liability for negligence,
slightly higher, in response to our offered by ExtraSauber via an online if the newly established auditing
feedback ExtraSauber raised this shop are stored with safety data sheets procedures prove to be effective point
minimum threshold from 15 EUR to that contain information of potential 3.2 can also be awarded in future
20 EUR gross per hour. For the solo hazards and safety precautions. Finally, ratings.
self-employed cleaners, this minimum several measures also exist in order to
floor is of immediate relevance for protect cleaning workers from assaults Moving to the principle of Fair
their pay, and should guarantee that (e.g. blacklisting customers if workers Management, our evidence suggests
they are earning not only above the submit complaints about them). that there is a channel for workers
at-risk-of-poverty threshold but also to communicate with a human
above the collectively agreed minimum When registering on the platform, representative of the platform (e.g. by
wage in the sector after costs (e.g. for workers are asked to accept a telephone via the customer centre, by
transport, work equipment, and liability Privacy Agreement, which explains email or by an in-app chat). Messages
insurance). In the case of employees the data collected and its purpose.50 (chat, email) are linked to a ticket
of the “partner companies”, on the Additionally, in the Terms and system, which guarantees a maximum
other hand, the hourly calculation Conditions for partners, the platform response time of 48 hours. In addition,
rates are defined by the employers, informs the workers which data will Clause 3 of ExtraSauber’s Terms and
and there is no direct relationship be available in the worker’s profile on Conditions for partners sets out the
between these rates and their actual the app (e.g. first name and surname conditions for terminating the contract.
wages. That said, in the General Terms abbreviation, photo, customer rating, This essentially involves specifying
and Conditions for partners the latter etc.). ExtraSauber thus scores point the main reasons for terminating the
are obliged to comply with existing 2.1 of the Fair Conditions principle, contractual relationship or blocking the
minimum wage requirements.48 In the but not point 2.2, due to the lack of a user account (e.g. “non-compliance
Austrian context, where no statutory safety net provided by the platform. with labour law requirements”). In
minimum wage exists, this implies that the case of terminations that are
In the course of the registration perceived as unjustified by the partner
employees must be paid in accordance
process several documents (General companies, they can still contact the
with the collective agreement
Terms and Conditions, Privacy Policy) management (e.g. via telephone or in
for the “monument, facade and
have to be accepted. Most of the the context of a personal conversation)
building cleaners” which would also
workers we interviewed consider these in order to appeal such disciplinary
include various bonuses and special
documents to be understandable decisions. All in all, ExtraSauber is also
payments.49 Until recently, however,
and also accessible, since they can awarded point 4.1.
there were no procedures on the
be accessed at any time via the
part of the platform to audit whether
partners’user account. In common with the rest of the
partner companies are complying with
cleaning sector, the vast majority of
these requirements. However, after Moreover, there are no reports of workers at ExtraSauber are women,
close exchange with the Fairwork team, any clauses perceived as unfair in and most of them have a migration
such a procedure was established (see the worker interviews. Hence, for background. While the platform had
the “Impact and Next Steps” section example, none of the interviewees anti-discrimination guidelines in their
of this report). Therefore, we award complained about the obligation set (company-internal) Code of Conduct,
point 1.1 of the Fair Pay principle to out in the Terms and Conditions to after engaging with Fairwork, this was
ExtraSauber and will consider awarding provide ExtraSauber with proof of extended to the Terms and Conditions
point 1.2 as well in future ratings, if the liability insurance, with a permanent for partners and for customers (Clause:
aforementioned procedures prove to minimum cover of one million EUR per “Code of Conduct”).51 Moreover, the
be effective. claim. Furthermore, one critical point possibility for cleaning workers to also
regarding the Terms and Conditions rate the customers was introduced,
In recognition of the variety of task-
has been changed by the platform which also includes a general feedback
specific risks which are associated with
in response to our feedback. More option. This new feature aims to
providing cleaning services in private
precisely, it has been specified that provide a mechanism to reduce the
households, ExtraSauber provides
in the case of a refusal of orders due risk of users discriminating against
its workers with different health and
to illness, no fees will be charged, workers, and to monitor customers to
safety measures, including measures
provided that a medical certificate is ensure that they provide workers with
to protect them against COVID-19 (e.g.
submitted in time. With regard to the a welcoming working environment. We
communication of safety guidelines to
Fair Contracts principle we thus award hope to rate the effectiveness of these
workers, etc.). For accident prevention,
point 3.1 to ExtraSauber. While we policies associated with point 4.2 in
the platform has established an
still know little about the contracts future ratings.
“ExtraSauber Academy” which
between workers and subcontractors
provides online instructional videos on20 | Fairwork Austria Ratings 2022
For Fair Representation, ExtraSauber will continue to monitor developments
initiated a two-step plan in close in our future ratings with respect to
cooperation with the Fairwork Team point 5.2.
to improve the possibilities of co-
determination and representation
for cleaning workers. In a first step,
the function of an ombudsperson
was created and appointed by the
management with an experienced
cleaning worker. Cleaning workers are
informed about the ombudsperson via
the app (including contact details and
availability). Additionally, references
to the counselling centres of the
Austrian Economic Chamber (for solo
self-employed workers) and of the
Chamber of Labour (for employees)
can be found. In a second step, an
advisory board consisting of partner
companies and cleaning workers
will be established. This process has
already been initiated by inviting all
eligible persons to stand for election.
Once elections have been held, the
board should meet about four times a
year virtually or in person to discuss
problems and concerns with the
management. With this in mind, we
awarded point 5.1 to ExtraSauber. We
Rawpixel.com / Shutterstock.comLabour Standards in the Platform Economy | 21
Workers’ Stories
Natia* takes care of children, working work depend on what is directly negotiated
on a self-employed basis through a care with the clients. Natia likes the flexibility
work platform in Vienna. She takes her of platform work. Nevertheless, she has
Natia clients’ children home from day care, the feeling that these flexible working
plays with them, prepares their meals, arrangements primarily benefit the
Care worker
puts them to bed, then does some light clients, not her. Some weeks her clients
housework. Natia enjoys working with do not need her at all, another week she
children, but in the longer term she would is expected to work more hours, which is
prefer a job in the field of her studies. She inconvenient for her studies.
obtained a bachelor’s degree in Business
and Economics from her home country in In addition to the lack of stability, Natia
Eastern Europe and moved to Austria to faces another risk when performing care
continue her studies. As she is not an EU work through digital labour platforms:
citizen, she said babysitting was the fastest harassment and abuse. As a young female
way to enter the labour market: “I do worker, meeting new clients is stressful
something Austrians and people from EU for her: “I am always scared that someone
countries do not like to do themselves”. is crazy”. With her student job based on a
regular employment contract, and a few
Recently, Natia found another part-time reliable, trustworthy clients she finally
student job that provides health insurance, found on the platform, Natia now feels
sick leave, and paid vacation – a safety more comfortable with platform work,
not provided in platform work. Now she compared to her initial situation, when she
only works on the platform in the evenings was entirely dependent on it.
and on the weekend, and the conditions of
Bilal* came from Pakistan to Austria in He also used the platform’s equipment,
2019 in order to study in Vienna. Coming including the app for shift scheduling and
from a so called “third country”, his access the backpack for deliveries. However,
Bilal to the Austrian labour market is restricted the piece rates per order paid by the
Delivery driver by his student residence permit. Among subcontractor were about half those of his
other things, he is only allowed to work counterparts working on the platform.
up to 20 hours per week and potential
employers must apply for his work permit. At one point, the subcontractor stopped
While it is generally difficult to find a job paying Bilal and his colleagues altogether.
that fulfils these criteria, it became even In response, riders decided to organise
more difficult in the beginning of the and resist this wage theft. “Me and my
COVID-19 pandemic, when unemployment colleagues, we made this group, and we
was skyrocketing. were developing strategies, how we should
approach the employer”, Bilal recalls.
Bilal was more than happy when he was Finally, they decided to get counsel from
offered a job at a subcontracting company the Chamber of Labour which filed a
of a huge delivery platform: “I was lawsuit against the subcontractor. Since
desperate to find a job. And I said, okay, it the subcontractor had become insolvent
is better than nothing”. As a rider for the in the meantime, in early 2021 all unpaid
subcontracting company, he did the same wages were paid through the Insolvency
job on the outskirts of Vienna as did other Remuneration Fund.
riders of the platform in the inner city.
*Names and nationalities changed to protect worker identityYou can also read
