Brazil's iFood to Continue Negotiations Over Work Rules for Its Employees

Brazil's iFood to Continue Negotiations Over Work Rules for Its Employees
Photo: IT Web 11.03.2024 337

Company says agreement to regulate delivery workers will be reached soon.

Delivery service company iFood’s public policy director, João Sabino, said in an interview with the CBN radio station that he sees no problems in President Lula’s call for a regulation of the platform. Mr. Lula’s criticisms were expressed at an event to launch a supplementary bill aimed at the regulation of a new work category for ride-hailing drivers. After a year of conversations, food delivery-service workers were left out of the regulations.

In the interview, Mr. Sabino said, “the president is supporting workers and that is how it should be.” He pointed out that the company is available to talk and that there is an open dialogue with the federal government.

According to the executive, the government and the company have divergent positions and have reached a stalemate, but will continue negotiating and could reach an agreement soon.

He said the drivers’ pension model cannot be replicated for delivery-service workers. Although both categories are similar in many ways, they also have relevant differences, especially involving nominal earnings.

“A ride-hailing driver’s earnings are much higher in terms of nominal value. It is much easier for them to reach the minimum social security contribution floor and, thus, be included in the pension. As for delivery-service workers, their level of dedication to the platform is lower because there is seasonality in food delivery.”

Mr. Sabino said the proposal that was being discussed before negotiations stalled involved a taxation level that was at least double the current rate. In the model proposed by the government, workers who earn less would pay a higher tax rate, he added. “That is the main point of disagreement,” he said.

Last week, when presenting the project, Mr. Lula and Labor Minister Luiz Marinho blamed iFood for the lack of a solution to the situation of delivery service workers. 

“I know iFood isn’t keen on negotiating, but we’ll persist, and they’ll have to come to the table,” 

President Lula said.

Source: Valor International

digital markets  Brazil 

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