Delivery couriers recently protested against what they described as a deterioration in pay.
Allegations were also made that the delivery platform works with subcontractors that employ and exploit vulnerable drivers under conditions that are, in some cases, illegal.
These companies allegedly issue employment contracts for eight hours a week, while couriers are in fact required to work 60 to 70 hours and hand over a significant percentage of their earnings to the subcontractors. Some are reportedly recruited outside refugee accommodation centres.
People without legal residency status are also said to work for these companies and, depending on their status, may have to pay even higher commission rates.
"In some cases, they are effectively using mafia-like methods", David Angel, representative of the Independent Luxembourg Trade Union Confederation (OGBL), said in an RTL interview on 16 June.
Until now, Wolt Luxembourg had only communicated in writing. The company employs around 30 people in Luxembourg. Christian Kamhaug, its head of communications and press relations, is not based in the country but travelled to Luxembourg in mid-July specifically to respond to the allegations.
Speaking to RTL, he said he was shocked by the claims. "That is not how we operate. We are a Nordic company with Nordic traditions, and we place great importance on good working relationships and fair pay."
Wolt has previously faced similar allegations in other European countries. Kamhaug acknowledged that such issues had arisen in some markets, while others were operating very well. He said the company had heard these allegations in Luxembourg for the first time. Until now, no one had contacted the company or lodged a complaint, including through its whistleblowing channel, he noted.
Kamhaug said it had no direct evidence or the names of any affected couriers, but intended to investigate the matter and respond appropriately.
Wolt disputes the use of the term "subcontractor", which has so far been used by trade unions and the press. The company refers to them instead as "fleet companies".
In practice, these are companies that employ couriers who deliver food and other purchases on behalf of Wolt. Before entering into a partnership with these companies, the delivery platform carries out risk assessments and subsequently conducts regular checks, Kamhaug said.
"But we cannot check every courier on the street and examine what kind of contract they have", he added.
The platform declined to disclose the exact number of couriers with a Wolt account in Luxembourg, only saying that the figure was between 500 and 1,000. Around 50 couriers currently still work through a fleet company.
Wolt confirmed that it works with two fleet companies in Luxembourg, although these partnerships are due to end shortly. The arrangements will expire this summer, before the end of July, according to Kamhaug. He insisted that the decision was unrelated to the recent allegations.
Kamhaug explained: "No, that was the plan from the outset. That is how we operate. When we enter a new market, we work with local companies. We then phase those partnerships out once we have more couriers working directly with us. That is our preferred model."
What is certain is that the Inspectorate of Labour and Mines (ITM) will soon step up its inspections, as Labour Minister Marc Spautz announced following the allegations.
Independent couriers have nevertheless complained that their pay has fallen, with some saying they are earning between 30% and 40% less. They claim they are making less than the minimum wage despite working 12 hours a day, seven days a week.
Wolt rejects these allegations. The company acknowledged that it had introduced a new payment model under which deliveries are paid at higher rates during periods of strong demand and at lower rates when demand is weaker. Overall pay, however, had not changed, Kamhaug insisted.
How, then, does the company explain the reductions that led a number of couriers to protest on 12 June? Kamhaug acknowledged that individual couriers could indeed be earning less.
"If you only work at times when demand is low, you will feel the difference. But if you work smart and choose times when more work is available, you will earn more", he said.
Couriers are free to work whenever they choose, he said, adding that they are shown the payment offered for a particular delivery and can decide whether to accept it. The system does not penalise them for declining an order, according to Kamhaug.
Representatives of the couriers and the trade unions have since also met Labour Minister Marc Spautz. The EU Platform Work Directive must now be transposed into national law, with Luxembourg expected to have corresponding legislation in place by December.
Trade unions are calling for workers who are falsely classified as self-employed to be granted employee status by law.
According to Wolt, however, there is little interest among couriers in such a change. Surveys conducted by the company reportedly found that 80% preferred to work on a self-employed basis because of the flexibility it offered.
Many couriers also carry out deliveries only as a side job for a few hours each week. Wolt has nevertheless employed some couriers directly in Germany, Finland, and Norway, according to Kamhaug. He said that the company would assess which model made the most sense, both commercially and in light of the legislation in each country.
Regarding the implementation of the EU Platform Work Directive, Kamhaug said Wolt was working with the relevant authorities in the different countries where it operates. As the company is active in 30 countries, it hopes to see more harmonised rules across the EU, according to Kamhaug.
"We are open to greater regulation, as long as it is sensible."
