Two leading UK investment companies, Aviva and Aberdeen Standard, will refuse to buy shares in Deliveroo when the company goes public at the end of this month. They are concerned about the way the meal courier deals with his employees.
Deliveroo has long been under fire for the status of its couriers. In the Netherlands, there is still a lawsuit against the company because it classifies its employees as self-employed. As a result, they receive less social protection and the FNV trade union disagrees.
The Court of Appeal in Amsterdam approved FNV in the case last month because, according to the judge, there is no question of independent work if a certain authority is exercised and a fixed salary is paid. Therefore, they should get an employment contract. Deliveroo is appealing that ruling.
“Companies can make a big difference in the lives of their employees”
But there have also been international objections to Deliveroo’s personnel policy for some time now. Two major investors now announce that they do not want to invest in the company, which wants to raise 1.2 billion euros at its IPO on March 31.
David Cumming, Aviva’s investment boss, told the UK on Thursday Radio 4 that for him there is a combination of investment risk and working conditions. “Deliveroo itself says that a reappraisal of the couriers is an investment risk for the company,” he said. “But companies could make a huge difference in the lives of their employees if they gave them guaranteed hours and a minimum wage. How companies behave socially is increasingly important.”
According to the British newspaper The Guardian Aberdeen Standard has similar problems with the company.
The fact that two top investors are already publicly announcing that they will not buy shares may lower the company’s valuation. The company is currently valued at 12 billion dollars at the IPO, but if more parties drop out, it is no longer certain whether that amount can be achieved.
Source site www.nu.nl