Foodora couriers across the country will receive a $3.46 million CAD settlement after the company filed for bankruptcy and shut down Canadian operations in April.
The delivery service’s parent company, Delivery Hero, notes that this settlement will resolve the ongoing claims by the Canadian Union of Postal Workers (CUPW) against Foodora.
“This settlement shows what happens when workers have unions fighting for them. To lose your job during a global pandemic is stressful, but to lose it as a gig worker, with no guaranteed access to government funds is truly terrifying and we are pleased to have reached this settlement,” said CUPW president Jan Simpson in a press release.
The union filed a complaint arguing that Foodora was shutting down its operations because couriers in Toronto and Mississauga were granted the right to unionize in February after the Ontario Labour Board ruled that they were independent contractors.
The CUPW notes that almost 90 percent of Foodora couriers voted in favour of unionizing, becoming the first app-based workers in Canada to successfully unionize.
“We’re glad to have reached an agreement to financially compensate riders, Foodora Canada’s employees and other creditors to minimize the impact of exiting the Canadian market,” said David Albert, the managing director of Foodora Canada, in a press release.
Foodora started its bankruptcy proceedings in April and declared $4.7 million CAD in debt.