Italian prosecutors have placed Foodinho, the Italian unit of Spanish food delivery group Glovo, under judicial supervision and opened an investigation into its CEO over alleged labour exploitation, according to judicial documents seen by Reuters.
Foodinho operate in Milan and other Italian cities, identifiable by their yellow Glovo-branded delivery bags.
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An urgent decree imposing court oversight on Foodinho has been executed by the Carabinieri labour unit, a specialised unit of the Italian Carabinieri that aims to monitor, prevent and suppress violations of labour and social security legislation.
The measure is part of a broader effort by Italian authorities in recent years to tackle alleged labour abuses across multiple industries.
According to a statement, Glovo said that it would cooperate fully with the inquiry.
The statement said: “The company has always operated with the aim of improving its standards as well as its operational activities, and it will continue to maintain an ongoing, constructive dialogue with the competent authorities.”
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By GlobalDataAccording to the 54-page judicial decree, Foodinho riders were paid on average €2.50 ($3) per delivery, which prosecutors said fell below the poverty line.
In some instances, remuneration was more than 75% lower than the identified poverty threshold, the document said.
The findings drew on testimony from 39 migrant workers. The minimum subsistence level for workers in Italy is set at €1,245 per month.
Prosecutors wrote in the decree: “The checks carried out point to a situation of genuine labour exploitation, perpetrated for years to the detriment of a very large number of workers, who receive pay that is disproportionate to the quantity and quality of the work performed.
“This illegal situation must be brought to an end as soon as possible, also because it involves a significant number of workers who live on earnings below the poverty line.”
Prosecutors said the riders are officially treated as self-employed, but in practice function as employees because their work is managed via an IT platform that defines their conditions.
Under the judicial control ordered by prosecutors, a court-appointed administrator will be tasked with ensuring workers are given the correct legal status and with monitoring compliance with labour regulations and working conditions.
Glovo’s German parent company Delivery Hero stated: “Its brands always collaborate with judicial authorities across all the jurisdictions where we operate.”
