40 staff and 1000 contracts affected as foodora closes its Australian operations

Kenny Grant
August 5, 2018

"Ever since they arrived in Australia, Foodora, like other food delivery companies, has denied its riders fair rates, superannuation, workers compensation, annual leave, the right to collectively bargain and even forces them to work shifts for no pay at all", TWU national secretary Tony Sheldon said in a statement.

Those battling the company say they're employees of Foodora, and deserve workers' rights such as sick leave and superannuation.

"Foodora has announced. its decision to leave the Australian market and cease operations in response to a shift in focus towards other markets where the company now sees a higher potential for growth", the group said in a statement Thursday.

Foodora has been criticised over pay and conditions for its delivery drivers and still has two lawsuits to defend here - an unfair dismissal case and a sham contracting claim.

Foodora said it will "fully utilise its resources to ensure employees find suitable alternative roles" and "support partners and contractors during this transition".

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Last month, food-bike delivery staff working for companies like Foodora, Uber Eats and Deliveroo went on a week-long strike in France to demand better pay and benefits. After that and until August 20, there will be a wind down of services with fewer shifts available. It said it misrepresented regular employees as independent contractors.

But Foodora has classified them as independent contractors, which means if a rider is unable to work, they're on their own. Josh Klooger said he was sacked by the company for publicly talking about his pay and conditions. According to John Chessal, a deliver rider, Foodora's closing was "nice news".

In light of these issues, Foodora spokesperson told the ABC that "Foodora will continue to manage legal proceedings locally in Australia and will continue to treat them with the utmost importance". He did not believe the company's reason for leaving Australia.

The company confirmed yesterday its plans to exit the local market after three years battling it out against the likes of UberEats and Deliveroo.

Foodora in June said it could not comment because the matter was before the courts.

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