Foodora condemned for closing Australian operation during back pay dispute

05 August, 2018, 10:11 | Author: Mary Valdez
  • Food Delivery App Foodora Is Set To Leave Australia By The End Of This Month

The Transport Workers Union (TWU) has accused Foodora of ceasing its Australian operations to "avoid responsibility for paying its riders millions of dollars in backpay as a result of wage theft".

The union said in March it was taking two cases to the Fair Work Commission, Australia's national workplace relations tribunal, alleging Foodora unfairly sacked two delivery riders.

Food delivery app, Foodora - the pink one - has confirmed they're wrapping up business in Australia at the end of the month because it wants to explore opportunities in other markets.

Foodora only had an estimated 5.3% share of the online food delivery market, behind rivals Deliveroo and Uber Eats, so it won't make a whole lot of difference.

"We wish to express our gratitude to all of our customers, contractors and employees for their dedication to Foodora Australia, and for allowing us to be a part of their everyday", Foodora's Australia country manager Jeroen Willems said.

But while the company may be ceasing operations on August 20, it's likely they'll need to stick around Australia in some form: they've got two pending lawsuits that they will still have to defend. According to John Chessal, a deliver rider, Foodora's closing was "nice news".

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Australia's Fair Work Ombudsman also launched legal action against the company.

Foodora denied the accusations, noting it was divesting its interests in France, Italy and the Netherlands at the same time.

Sheldon said the federal government had "invited" eighteenth-century working conditions into the community, and was standing by as the company left.

On-demand delivery service in hot water over alleged "sham-contracting" of three workers.

In addition, foodora is being pursued by the Fair Work Commission in an unfair dismissal case arising from former rider, Josh Klooger, who first started working for the company in Melbourne in 2016.

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