Recruitment agencies inconsistent on 50% salary cut

Agencies identified by MaltaToday as having recruited platform workers for food delivery apps by taking a 50% cut from salaries, are skirting around questions by MaltaToday.

Couriers who spoke to this newspaper said their income is split 50/50 with recruitment agencies who provide the manpower to food delivery apps. Prime Minister Robert Abela has now confirmed that Cabinet has discussed the issue of illegal employment practices by these companies.

But many companies approached by MaltaToday avoided confronting the issue, often going into painstaking detail over the working conditions of their employees.

Mantvydas Narusevicius, director of Wolt Food Delivery Malta, said the company was providing workers with holiday pay, sick leave, and government bonuses – but then clarified that WFDM was not a recruiment agency.

“We are a food delivery service provider where we, the company, gets paid directly – and not couriers. Couriers have contracts and get paid salaries. Same as a nail technician who works at the salon. You pay her, but she gets paid by her boss. It’s called employment,” he said.

Narusevicius however stated that he had previously worked for one of these recruitment agencies, and argued that the 50/50 basis was an industry standard given the amount of benefits these companies offer. “The company gives the motorbike, fuel, apparel, insurance and training – that’s why the basis is 50/50 normally. They have expenses while drivers have none.”

But the admission shows that food delivery workers have to ‘pay’ out of their earnings to retain their employment: that is, they must use their salary to pay for the use of the motorbike and fuel that allows them to carry out their job.

Another firm, WT Global, insisted its couriers are given performance and fuel allowances, apart from full insurance and towing services for motorbikes. They denied charging additional fees for third country nationals to secure the job. “We service and repair all bikes ourselves, and provide customer support to all employees during working hours. We insure all workers during working hours with employee liability insurance... when bikes break down we offer free towing and give couriers another bike.”

They also denied taking 50% of courier earnings.

RecruitGiant, one of the largest courier providers, did not comment by the time of going to print.

MaltaToday last week revealed confirmed reports of couriers taking in just €2.70 for a delivery with recruitment agencies supplying delivery-workers to food delivery apps. Procuring the company jacket and bag was another irregularity across agencies: some couriers report having received all the equipment for free, but others reported paying a deposit or having the cost deducted from their first payment.

Most couriers earn 50% of the amount they generate, but the wage and method of payment varies between each courier. Some report earning €5 or €7 an hour, others say they earn €800 per month, but a majority only retain 50%. Certain firms provide riders with €150 for fuel.

The matter was discussed in a Cabinet meeting the following Monday, with Prime Minister Robert Abela confirming that a plan is being drawn up on how to address the situation.

Union leaders also expressed serious concern over commission fees being paid out by employees, and the lack of contractual agreements among self-employed food couriers.