Skip to content
Home » PAM puts negotiations with Wolt on hold – the proposed compensation would not improve food couriers’ situation
Press releases

19.12.2024 13:47

PAM puts negotiations with Wolt on hold – the proposed compensation would not improve food couriers’ situation

The negotiations that had been ongoing for over a year were put on hold, because Service Union United PAM and PAM Couriers Finland cannot accept an agreement, that would rise average compensation to couriers by only two euros a day. Some might see their compensation decline. 

Today, PAM informed the technology company Wolt that it will put negotiations on a collective bargaining agreement on couriers’ terms of work on hold. Progress was made during the negotiations on some aspects of the terms of couriers’ work and the structure of the compensation model, but the minimum compensation level proposed by Wolt is unacceptable to PAM and the union branch PAM Couriers Finland. 

In addition, the government’s proposed legislation on home delivery of alcohol that has an essential effect on courier work must be considered. PAM thinks alcohol should only be delivered by workers in an employment relationship. Read PAM’s statement on alcohol delivery in Finnish 

—We believe the Orpo government will make responsible politics on the home delivery of alcohol. Couriers’ lack of security and minimum terms should be taken into account, says PAM Collective Bargaining Manager Juha Ojala. 

Wolt’s prosed compensation level is insufficient 

—We cannot make a deal that would not truly improve couriers’ incomes and working conditions. Couriers deserve the basic rights at work, and that includes fair compensation, and with it a manageable workload, says PAM Couriers Finland chair Papy Nkunda. 

Different models that would guarantee minimum compensation for so called active time when a courier picks up and delivers orders. In addition, there were proposals as to a compensation per kilometre based on delivery distance. PAM has sought agreements for both food delivery by self-employed couriers and couriers in employment relationship. Negotiations on courier work done in an employment relationship have not progressed. 

—Wolt’s proposal for minimum compensation would not be a genuine improvement and would not ensure an adequate compensation level for couriers to live on. That is why we are putting negotiations on hold, explains Ojala. 

PAM’s view of what constitutes fair compensation differs significantly from that of Wolt. The minimum compensation for active time proposed by Wolt in negotiations is significantly lower than what Wolt founder Miki Kuusi says is the current average compensation (20-21 euros for active time). 

Notably, average compensation for active time is not the same as an hourly wage. Time waiting for new deliveries is not compensated at all. From the compensation the courier must pay all costs and taxes. 

PAM’s goal is still to negotiate collective bargaining agreements for couriers. PAM is ready to continue negotiations later on, but expects Wolt to show responsibility and genuine willingness to improve terms and conditions of courier work.

Keywords:

collective bargaining Platform economy

What did you think of this content?

Read next

Search