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Drivers delivering errands for Ocado earn less than the minimum wage, the Observer can reveal.
The drivers, who deliver orders for online retailer Ocado Zoom’s fast delivery service, were previously paid an hourly wage of £ 14. But they are not directly employed by Ocado, and claim their earnings plummeted after the company brought in a new delivery partner, Ryde, in June.
Faizan Babar, who has been delivering errands to Ocado for more than two years, said he couldn’t afford to take his two young daughters on vacation this year or replace their broken scooter. “I earn an average of £ 50 for a 10 hour shift. And we pay our own cars, taxes, fuel, and insurance with it. It comes down to less than £ 5 an hour. Ocado treats us like dirt.
Babar, 30, works 7 a.m. to 8 p.m. on some days just to keep up with his bills – everything else is a luxury he can’t afford. “I can’t give my daughters or my wife time. I can’t even take them for a day, ”he said. “My daughter wants to go to Chessington [theme park] but I can’t afford it. I feel awful. I can’t tell him about it.
Babar said many of his colleagues have seen their earnings drop by 50 to 70% since Ryde took over from Ocado’s former delivery partner.
Pay slips seen by the Observer show Babar made around £ 5 an hour in the first week of August and £ 2.91 an hour in the last week of July. “It is not enough to survive. I have to claim universal credit, ”he said. “Each of us is in trouble. “
The Independent Workers Union of Great Britain (IWGB), which represents the drivers, said Ocado should take responsibility for the fate of a group of loyal workers who have continued to work through successive shutdowns. “These drivers are key workers who risked their lives during the pandemic delivering vital supplies to Ocado, but are now seeing their wages cut by a company that has seen its profits soar,” said Alex Marshall, union president. .
“They should be treated like the heroes they are. Ocado must take responsibility and bring these workers in-house. “
The union will send an open letter to Ocado this week, accusing the company of abandoning a precarious, majority minority workforce. He warns that the IWGB will start a public campaign against Ocado unless it enters into negotiations. The company announced group profits which rose by nearly £ 30million to £ 73.1million in February, but recently saw sales plummet as buyers return to their pre-Covid habits.
But the fast delivery market is expanding, with huge amounts of venture capital flowing into courier companies trying to replace smaller top-up purchases made at corner stores with super-fast deposits, typically. within one hour of placing the order. Ocado, whose CEO Tim Steiner received a salary of £ 58.7million in 2019, plans to roll out Ocado Zoom across Britain, with at least 12 ‘micro distribution centers’ set to open.
Ocado, which is half-owned by Marks & Spencer, said: “Ocado Zoom works with a number of third-party vendors and expects all of them to meet its high standards.”
Ryde, who is backed by some of the world’s largest venture capitalists and tech investors, said it was a ‘passenger first’ last mile delivery company, with free drivers. to work as it suits them best. “We put the well-being of our workforce at the heart of everything we do,” said a spokesperson.
“On average, our platform workers earn 15-20% more than other companies in the gig economy. We are constantly advocating for improved conditions for them at all levels.
Other drivers based at the Ocado Zoom depot have also come forward. Ahmed Fahim, who has been depositing Ocado races since 2019, said he was making around £ 200 per week on the Ryde app. “I worked throughout the pandemic because I had to put food on the table. I had the Covid when my wife was pregnant. But there is no appreciation or respect for the risks we took for them, ”he said. “Ocado treats people like crap.”
The payslips seen by the Observer show that Fahim, who worked 14 hours, seven days a week, earned around £ 4.63 an hour in the first week of August and £ 3.80 an hour in the last week of July. Fahim, 27, said he was forced to cut everything except the essentials to avoid taking on more debt or having to resort to a food bank. “It’s a horrible feeling that you have worked for a company like Ocado for three years and no one asks you how you are doing,” he said.
Another driver, Jakaria Rehman, 35, said he earns around £ 3 an hour. “Ocado is shameful. They say we don’t work for Ocado but we deliver for them. They don’t like us, ”he said.
The drivers were even forced to buy new smart clothes. Ryde specifies on the app that “Outerwear… is not acceptable and may prevent you from working shifts”. Babar, who worked through the blockages despite being classified as clinically vulnerable, said it was another expense the couriers had to bear on their own. “Jeans and shirts cost over £ 50 and you have to have at least two or three pairs. It’s at least a few hundred pounds that we don’t have, ”he said.
The size of deliveries, which can include beer cans and wine bottles, are increasing, drivers said. When the drivers started they had to take groceries that fit in two courier bags, now it’s four bags. They say they are frequently asked to take even more, with the Observer showed shopping footage overflowing with four bags.
“They used to split the heavy loads, but Ryde makes us take whatever Ocado gives us. Sometimes we get five bags worth, ”Babar said. “Most drivers have shoulder and back pain. “
A driver must take pain relievers to get through the working day. “Each delivery is at least 30 kg to 40 kg. If you take 20 or 30 trips, you are carrying over 1,000 kg per day, ”said Fahim. “I have to take pain relievers because my back and knees hurt. “
Attempts to discuss the worsening situation with Ocado and Ryde proved frustrating for the pilots. “Ocado is hiding behind Ryde. They say talk to your employer, you have nothing to do with us, ”Babar said. “But Ryde blames Ocado and says they can’t pay us anymore. We have nowhere to go, we keep coming and going.
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