On Friday, February 17, 2023, around 100 freelancers demonstrated at Mjam for the third time. The first two times in September and October accelerated some processes at Mjam and the management promised “a new wage model.” Another poorly attended demo attempt in December showed that most colleagues were probably waiting patiently for the promised solutions and the new wage model announced in 2023. In the meantime, Mjam met with at least a permanent Sunday surcharge of 50 cents per order.
However, when Mjam presented the new wage model, many colleagues were confused and disappointed. The reward consists of:
The mileage allowance to the restaurant
+ 1€ for pickup
+ Mileage allowance to the customer
+ €2.55 for each drop off,
+ mileage allowance to the next customer in some cases.
This has a complicated and irritating effect on many, because the wage per order now appears less, but the mileage allowance is more. According to Mjam, however, the average total wage per hour is reliably higher - if you also accept orders with further distances. This is also confirmed by a large number of colleagues, but is still not approved by many others.
“No acceptance rate for freelancers! ”
Riders on e-scooters, for example, must calculate how many orders are possible with their battery, otherwise they could get stranded somewhere and have difficulty getting home with their vehicle. The classic bike driver would now say: “That's why people prefer pedals.” Quite a few of the colleagues ride on e-scooters because they have knee or back problems due to accidents or overload, for example, but are still dependent on this job. If they are now paid by distance, the cost-benefit effect is as constant as possible, or their chance of a higher wage is very uncomfortable to achieve.
And: Anyone who rejects an order too often is placed on an unpaid break and must first report ready to work again.
“New pay model — less or equal pay? ”
What's new as apparent news for colleagues: The mileage allowance is subject to social security contributions for freelancers. This is what a VwGH ruling in 2005 says: less net of gross. The social security contribution is also deducted from the mileage allowance that you receive for using your own bike. You have to look at it positively: After all, the mileage allowance also counts for calculating sickness benefit, unemployment benefit, waiting allowance, or pension.
However: Compared to the previous year, colleagues now pay much more into social security in relation to the previous year. Why this is the case is not meant to be discussed in detail here. The point is that the SV contribution to the distances traveled was not taken into account in the new wage model and that is now likely to offset the hoped-for net wage increase. The actual figures will be available in mid-March, when all colleagues have received their payslips.
In any case, Mjam never called it a “wage increase,” but always a “new wage model.” However, there was a certain increase in MJAM's own minimum wage: 8.70 €/h is guaranteed.
“No batch system for freelancers! ”
The “batch system”, which works like a ranking and divides riders into 5 groups, also causes great dissatisfaction. The reliable riders in Batch 1 are given earlier access to shift planning. Anyone who uses their freedom as a free employee too often can only book shifts later, and it may be that there are only a few lucrative items left or none at all. However, anyone who does everything correctly and is reliable still has no guarantee of a place in the first batch. Because it is a ranking, and it simply cannot all be in the first fifth.
If the order situation is poor, many no longer receive any more shifts in Batch 2. For Mjam, this is the practical outsourcing of entrepreneurial risk.
So only about a fifth of the fleet is happy with Mjam. Hopefully, anyone who has to make a living from their job will be there. Anyone who is new to the job is there for the first few weeks and is usually promised a newbie bonus. For riders who have been busy for a long time and have to struggle to have a secure place in Batch 1, this is a slap in the face that shows them how unfree and replaceable they are when they complain.
During the demo, I heard lots of stories, saw screenshots of the app showing poorly paid orders or booked out shift schedules, and was asked what you should live on?
It may be that there are a significant number of satisfied Mjam riders. But an equally significant number has stress getting on enough shifts and orders to even be able to pay rent for their room/bed, food and loan installments for the bike.
Alternative real service contract?
When you talk to freelancers, many justify their decision by saying that you can earn more with a free service contract.
The real service contract offers fixed shifts, 14 salaries a year and 5 weeks of paid vacation, as well as a flat rate for using your own smartphone, and a 100% supplement on 12 public holidays this year.
In figures for a full-time position per year, this means:
14 x 1730€ (minimum wage) =... 24200€
12 x 20€ (mobile phone fee) =... 240€
12 x 80€ (holidays) =... 960€
__________________________________ 25420€ per year
/divided by 47 working weeks to 40 hours:
= 13.52€ minimum wage per hour exclusive mileage allowance.
According to Mjam, this corresponds to the newly calculated average wage of a freelancer including mileage allowance, and depends on the order situation, whether you get shifts at all, and of course a bit of waiting times in restaurants or with customers.
The minimum wages for a whole year of 40 hours per week and 47 working weeks:
Free service contract: 16,356 €/year
Real service contract: 25,420 €/year
Average wage per hour (3 orders, 10 km):
Free service contract: approx. 13.45 €/h
Real service contract: 15,76 €/h
Flexibility is an expensive asset.
Yes, anyone who makes a decent effort can earn more as a free employee than a real employee. But in order to really be able to compare this, you would also have to pour quality of life and stress levels into € figures.
Freedom of choice?
Mjam always tells the outside world that the riders are completely free to choose a free or genuine service contract. Many are convinced that the freelance contract is the best choice for them because their living conditions require a lot of flexibility, because they still don't have enough after 40 hours of cycling, or simply for ideological reasons because “self-employment” is desirable for them and sounds better than “wage-dependent,” whether it is actually true or only approximate.
But anyone who prefers income security, wants to stay in the job for the longer term and can calculate, opts for a genuine service contract. However, once you - out of ignorance or on the advice of happy, freelance colleagues - have opted for the free service contract, the election is no longer free at all. In the last year, many have tried to switch from freelancing to a real employment contract. If their questions were answered at all, they were rejected on the grounds that they were not currently looking for real employees, that it was simply not possible to switch at the moment, or that the colleague's request unfortunately could not be considered. Anyone who is placed on a waiting list waits in vain.
On the other hand, you can switch from a real employment contract to a freelance employment contract at any time (if the residence permit allows it).
But every now and then you're just lucky: Anyone who has managed to switch to an ED contract, but also who was rejected or who would like to try it, please send an e-mail to the works council!
