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Spain court rules against Amazon over freelance drivers

A Spanish court has ruled that over 2,000 people who used their own vehicles to deliver packages for Amazon as self-employed freelancers should have been hired by the firm as formal employees.

Spain court rules against Amazon over freelance drivers
Spain to fine Amazon. Photo: JONAS ROOSENS / BELGA / AFP

The Madrid labour court said in Thursday’s ruling that these workers were “false freelancers” who should have been tied to the US firm with work contracts.

It also ordered the online shopping giant to pay social security contributions for the 2,166 people it hired under the guise of freelancers, according to a copy of the ruling seen Friday by AFP.

The court did not say how much the measure would cost but Spanish trade union UGT, which filed the complaint against Amazon, put the price tag at “several million” euros.

The union said this is the first time a court has ruled against the company’s Amazon Flex service, which works like ride-hailing service Uber.

Drivers use an app to sign up for shifts to pick up packages at warehouses and deliver them to Amazon customers’ doors.

Amazon Flex ceased operating in Spain in 2021 just before the country passed a law requiring delivery riders to be recognised as employees instead of self-employed contractors.

READ ALSO – OFFICIAL: Delivery riders become company staff as Spain’s labour reform kicks in

UGT said it would “continue to fight so that the rights of workers who provide services on digital platforms are respected” and to avoid “situations of labour exploitation”.

Amazon had argued it only acts as an intermediary that connects retailers and distributors – a claim rejected by the court.

It said in its ruling that Amazon used an app to direct and coordinate the drivers who “lacked their own autonomous business organisation”.

Amazon said it disagreed with the court’s rationale and would appeal the ruling.

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WORKING IN SPAIN

Record 21 million workers: Spain’s unemployment rate falls as tourism booms

Spain's unemployment rate dropped in the second quarter, official data showed Friday, as a continued tourism boom added jobs in the services sector.

Record 21 million workers: Spain's unemployment rate falls as tourism booms

The jobless rate fell to 11.3 percent between March and June in the eurozone’s fourth-largest economy, down from 12.3 percent in the previous three months, national statistics institute INE said in a statement.

The services sector saw the biggest drop in the number of job seekers with nearly 200,000 fewer than in the first quarter but unemployment also dropped in other sectors, including construction, industry and agriculture, it added.

READ ALSO: ‘No longer black sheep’ – Tourism boosts Spain an other ‘Club Med’ economies

The total number of people employed in Spain rose by 434,700 people in the second quarter to hit a new record of 21.68 million.

Socialist Prime Minister Pedro Sánchez said on X that “Spain is making progress by breaking employment records.

“We continue to work to make this the legislature of full employment. We are going in the right direction,” he posted on the social network.

Spain’s unemployment rate jumped in 2008 as a result of the financial crisis following the bursting of a real estate bubble.

It hit a peak of around 27 percent in early 2013.

The jobless rate has dropped as tourism boomed following the end of Covid travel restrictions and labour reforms were passed to reduce the number of temporary contracts.

Nevertheless, Spain’s unemployment rate is still one of the highest in the eurozone.

Spain, the world’s second most visited country after France, received a record 85 million tourists last year, with the figure expected to hit a new record in 2024.

READ ALSO: The best websites to look for jobs in Spain

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