World’s first collective agreement between platform company and trade union in Denmark

Thursday 20 September 2018

The collective bargaining contract between UNI’s Danish affiliate 3F and Hilfr is unprecedented insofar as it treats self-employed contractors as workers. The 12 month pilot agreement came into effect on 1 August 2018.

There are around 450 workers on Hilfr.dk, a website platform providing cleaning services for around 1,700 customers across Denmark.

Key points of  the collective agreement:

  • A minimum payment of 141, 21 DKK (19 €) pr. hour.
  • A contribution to the pension savings
  • Holiday pay contribution
  • Sick pay
  • Introduction of a ‘welfare supplement’ (velfærdstillæg), an additional amount of 20 kroner per hour to be paid on top of salary.

Tina Møller Madsen, Chairperson for 3F Services, said, “I am very pleased that we have managed to conclude this pilot collective agreement with Hilfr. A lot of thinking has gone into this, and we are now looking forward to implement the agreement and gather further evidence for our evaluation in 12 months. With this agreement we are ensuring basic labour rights to the many people who would like to work on platforms.

“With this collective agreement we are bridging the ‘Danish labour market model’ and new digital platforms; by doing so we are offering initial answers to one of the major issues of our time: how to reap the benefits of new technology without undermining labour rights and proper working conditions.”

Steffen Wegner Mortensen, co-founder Hilfr, said, “We are extremely proud to have signed the world’s first collective agreement for a platform company together with 3F, a trade union. The platform economy suffers from a bit of a tarnished reputation because too many platforms are basically digitalising tax avoidance and poor working conditions and claim that it is very innovative. With this agreement we are raising the bar for the gig economy and show how we can all benefit from new technology without undermining labor rights and working conditions.

“At the same time we show that the Danish labor market model is able to work hand in hand with new digital business models. 3F, the trade union we work with, has been a pragmatic and constructive partner in this process and clearly interested in finding a solution.

“The deal makes really good sense from a commercial perspective. If you want to attract the best cleaners you also need to treat them well. Good working conditions, a fair salary and clear procedures to avoid tax avoidance has too often been disregarded by platform firms. With this agreement we are seeking to address these shortcomings and raise the standard for the platform economy.”

Head of UNI Property Services, Eddy Stam added, “We congratulate our affiliate 3F and Hilfr on this pilot agreement which serves as a blueprint for the platform workers’ industry in property services and beyond.”

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