Payslips of delivery workers seen by investigative journalists have revealed that some worked for less than £5 an hour at points this summer.
Accusations that workers delivering for Ocado Zoom, Ocado’s fast delivery service, via the Ryde app, have been paid much less than the national minimum wage were published by the Observer newspaper at the weekend.
Workers – who have to pay for their own fuel, vehicles and work clothing – were, it said, also having to undertake 10-hour shifts and use painkillers as heavy parcels took their toll on backs and knees.
Payslips were presented suggesting that some workers were paid as little as £2.91, £3.80 and £4.63 an hour for certain weeks in July and August.
The low pay issue was, they said, exacerbated by Ocado bringing in new partner Ryde for last-mile deliveries.
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The Independent Workers Union of Great Britain (IWGB), which represents the drivers, told the Observer that Ocado should not be claiming that the low pay issue had nothing to do with them.
“These drivers are key workers who risked their lives during the pandemic delivering vital supplies for Ocado but are now seeing their pay slashed by a company that has seen profits skyrocket,” said Alex Marshall, the union’s president.
“They should be treated as the heroes they are. Ocado needs to take responsibility and bring these workers in-house.”
The union wrote to Ocado on 23 August to urge it to “step in and do the right thing” and arrest the “rapid deterioration of pay and conditions” at the Ocado depot in Stirling Rd, West London. It warned that it may start a campaign against Ocado that would leave a “permanent stain on Ocado’s status as a reputable business”.
The IWGB’s letter stated that given Ocado boss Tim Steiner’s claim that the company had more than £2bn on its balance sheet and that it had an ethical supply chain, the company was choosing the “unethical employment practice of outsourcing the majority BAME workforce at Stirling Rd to exploitative gig economy companies”.
According to the IWGB Ryde was “even worse” than another third party delivery firm used by Ocado, Stuart Delivery Ltd. “It would appear that Ocado Zoom has chosen to use Ryde to further reduce the cost of labour,” it said.
Ocado, which is half-owned by Marks & Spencer, meanwhile stated: “Ocado Zoom works with a number of third-party suppliers, and expects all of them to adhere to its high standards.”
Ryde, which has benefited from large-scale investment from tech finance and private equity firms, described itself as a “rider first” last-mile delivery business, with drivers free to work when it suits them. “We put the welfare of our workforce at the heart of everything that we do,” said a spokesperson.
“On average, workers on our platform earn 15% to 20% more than other gig economy businesses. We constantly champion improved conditions for them across the board.”
According to Glassdoor, the pay of Ocado delivery workers ranges between £7 and £13 an hour with an average of £10. The website does not yet have information on Ryde’s pay.
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Ocado’s CEO, Tim Steiner, received a £58.7m pay packet in 2019. The firm is planning to roll out Ocado Zoom across the UK, with at least 12 “micro fulfilment centres” set to open.
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