Canadian Union of Postal Workers, Koskie Minsky, foodora Canada and Delivery Hero announce settlement with riders
August 25 2020 - 8:00AM
Today, foodora Inc. (“
foodora Canada”) a
subsidiary of Delivery Hero SE (“
Delivery Hero”),
the Canadian Union of Postal Workers (“
CUPW”) and
representative counsel for former riders of foodora Canada (the
“
riders”) announced a settlement with regards to
recent disputes around foodora’s exit of the Canadian market.
Delivery Hero has agreed to fund a settlement
payable to representative counsel and the riders in light of
foodora’s exit from the Canadian market. This settlement will
resolve the ongoing claims by CUPW against foodora Canada and
Delivery Hero currently before the Ontario Labour Relations Board,
and will provide financial compensation to riders across
Canada.
“Following the difficult decision to shut down
the foodora Canada business, we have been committed to finding a
way forward that our entire delivery community can agree with.
Particularly given the hardships created by the COVID-19 pandemic,
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,
Managing Director of foodora Canada.
“We appreciate the willingness of Delivery Hero
and foodora to negotiate a settlement quickly that will provide
meaningful compensation to the riders, particularly in the the
circumstances created during COVID," said Andrew Hatnay, Partner at
Koskie Minsky.
On April 27, 2020, foodora Canada filed a notice
of intention to make a proposal under the Bankruptcy and Insolvency
Act, and continued to run its business through to the end of the
day on May 11, 2020. CUPW filed an unfair labor practices complaint
with the OLRB against foodora Canada, Delivery Hero and others on
April 29, 2020. On July 8, 2020, Cavalluzzo LLP and Koskie Minsky
LLP were appointed by the Ontario Superior Court of Justice to
represent the riders in discussions with Delivery Hero and foodora,
which culminated in the global settlement.
About Delivery Hero
Delivery Hero is the world’s leading local
delivery platform. The company has a strong presence in 39 out of
43 countries in which it is operating across Europe, Latin America,
Asia, the Middle East and North Africa. Delivery Hero also operates
its own delivery service primarily in over 600 cities around the
globe. Headquartered in Berlin, Germany, the Company group has more
than 25,000 employees. For more information, please visit
www.deliveryhero.com
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