Class action: Will Walt be forced to recognize the couriers as company employees?
The Regional Labor Court in Tel Aviv accepted the request to conduct a class action against Walt on the question of whether Walt's messengers should be recognized as employees of the company.
This is an important decision of the court that may affect the entire shipping world
Wednesday, 03 August 2022, 09:12 Updated: 09:28
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Walt's courier collects a shipment.
Will the employment model change - and will it affect the food delivery industry? (Photo: Shay Azri)
The regional labor court is not usually a place where extraordinary dramas unfold, but it seems that the importance of this interim ruling - and especially the consequences it may have on the world of food deliveries that has become an integral part of the urban landscape, is hard to overstate.
The court accepted the request to conduct a class action against Walt on the question of whether Walt's messengers should be recognized as employees of the company.
This is an important decision of the court that may affect the entire world of shipping and labor law.
In its decision, the court stated that there is a reasonable possibility of recognizing messengers as employees.
Demonstration by Walt's messengers, May 2021, against the background of the accusation of employing illegal workers (Photo: Reuven Castro)
The decision will have an impact on the price of shipments
This is a precedent decision of the Regional Labor Court on an issue that concerns the new world of work.
The question will affect the price of the deliveries and the products we purchase, since determining that the couriers are Volt employees may increase the costs.
On the other hand, it is hard to ignore the plight of some couriers, who are without job security - and they are the ones who provide the bulk of the service that the company offers to its customers.
In other words, if Walt is forced to recognize couriers as employees of the company - this will have a decisive effect both on its business model, in a way that will be reflected in the price and on the entire food delivery industry.
The request for a class action against the shipping giant was submitted by the attorney office of Jacob Spiegelman.
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