On October 28, CECOP hosted a webinar examining the challenges and opportunities arising from the recent adoption of the Platform Work Directive. Formally adopted by the European Council on October 14, 2024, this Directive concludes nearly three years of legislative work. Member States now have two years to incorporate it into their national laws—a critical phase for cooperatives, as improper implementation could undermine fair competition. CECOP organized this webinar to raise awareness of the potential impacts of the Directive on cooperatives, inviting stakeholders to share their perspectives. The session included insights from Eurofound, the European Transport Workers’ Federation (ETF), CECOP’s Spanish member COCETA, and Club VTC, a cooperative of independent workers.

Francesca Martinelli, Director at Doc Servizi and Chair of CECOP’s Working Group on the Transformation of Work, opened the session. She highlighted the European Commission’s commitment to regulating digital and new technologies, as demonstrated by initiatives like the GDPR, Digital Services Act, Data Governance Act, AI Act, and the European Accessibility Act. Martinelli also emphasized the important role of cooperatives in addressing platform work challenges and the advantages of the cooperative model in the platform economy, including worker ownership, control over platform activities, fair wealth distribution, access to labor protections, and democratic governance.

Dragos Adascalitei, a Research Officer at Eurofound, then outlined the main objectives of the Platform Work Directive. Prior to the Directive, the EU’s regulatory framework for platform work was fragmented, leading to numerous court rulings, especially around employment status, which sometimes contradicted each other. Adascalitei explained that the Directive was designed to achieve four primary goals:

  1. Establish clear procedures for determining platform workers' employment status.
  2. Enhance transparency of algorithmic processes.
  3. Ensure human oversight in critical decisions affecting workers.
  4. Guarantee workers' right to information and consultation, directly or through representatives.

A panel discussion on "Challenges and Opportunities of the Platform Work Directive’s Implementation" followed, featuring speakers from COCETA, ETF, and Club VTC, who explored diverse perspectives.

Pedro Blazquez, Project Development Coordinator at COCETA, discussed the support his organization provides to platform cooperatives. He noted challenges such as the public's limited understanding of platform workers’ employment status, the risk of "fake cooperatives," and data protection issues. COCETA is concerned that poor implementation at the national level could result in unnecessary costs for small cooperatives, but believes that effective implementation, combined with strong communication, could help overcome these issues. Overall, they view the Directive as favorable for platform cooperatives, as it aligns well with their operational model.

Sayah Baaroun, General Secretary of Club VTC, shared the perspective from his cooperative of independent workers, which aims to provide drivers with good working conditions and high-quality service. The cooperative also advocates for fair treatment in the industry and takes pride in its self-managed platform. A major concern for Club VTC is that large companies could exploit small cooperatives to circumvent wage laws and employment obligations. In France, advocacy efforts have helped prevent larger companies from misusing cooperatives to deny workers employment benefits.

Conor Farrell, Policy Officer for Urban Public Transport at the ETF, closed the panel with a trade union perspective. He highlighted a political challenge, as some countries side with digital platforms and might implement the Directive in ways that favor exploitative practices, putting compliant cooperatives and their workers at a disadvantage. Administratively, trade unions have faced obstacles in securing employee reclassification for platform workers through the courts. Limited resources hinder enforcement, and compliance with laws remains challenging, as some companies persistently use loopholes to evade legal obligations. Farrell emphasized that collaboration between organizations and cooperatives is essential for safeguarding cooperatives' integrity and protecting their workers.

In closing, CECOP President and EESC member Giuseppe Guerini underscored the importance of strong collaboration across all stakeholders to create not only a level playing field but also a supportive environment for cooperatives.

 

This publication has been funded by the European Union. Views and opinions expressed are however those of the authors only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them.