Deepinder Goyal, Zomato''s CEO, has been described as a "ploy to divert attention" from recent worker protests by a Telangana-based workers'' union. According to Goyal''s internal announcement, the company''s executive made a "to save the devastating image."
According to a copy of the announcement on Friday, the Zomato executive said that he was awarded with the ESOPs worth Rs. 700 crores that he wanted to fund with the Zomato Future Foundation (ZFF) that would "cover education of up to two children of all Zomato Delivery Partners, up to Rs. 50,000 per child per annum on actuals (above a certain service quality benchmark)." He added that the given amount would go up to Rs. 1,00,000 per child per annum
"Service thresholds of 5/10 years will be lower for Women Delivery Partners. Lastly, we will have ''prize money'' for girl children as long as a child finishes the 12th grade, according to the organization.
Goyal promised to offer higher education scholarships over and beyond the stated rewards for children with "higher performance and potential educational and livelihood assistance" for Zomato''s delivery workers, irrespective of their service tenure, who "meet with unfortunate situations as accidents."
Despite being a quarter of the proceeds being allocated to the foundation, he said, while the remainder of the proceeds would be used for the first time in a row.
Shaik Salauddin, the founder state president of the Telangana Gig and Platform Workers Union (TGPWU), condemned Goyal''s efforts and said the "sudden concern" was aimed to divert attention from the outrage the company faces in several cities for underpaying workers.
In a prepared press note, he said that delivery workers must be protected by labor legislation rather than Goyal''s charitable organization.
"If Mr. Goyal is so concerned about the children of his partners, how do we ensure that every delivery worker, irrespective of the years spent at his company, is entitled to a living wage, does not overwork, has a social security net, and is covered by compensation legislation when they have a disability or death on the job?" he said.
He added that the executive would not take the suggested steps as it was a "cheaper and image-saving exercise" to establish a foundation to help children in need of medical care for a few delivery workers who had worked for over five years and ten years.
Salauddin questioned Goyal to provide the exact percentage of its delivery employees who have served for five years or more. Gadgets 360 also asked the company to provide the exact percentage of its delivery workers who have served in its fleet for at least five years and will update this space when the company responds.
"While we''re talking about it, how do you make public all the delivery workers who died on the job or suffered difficulties, as well as the compensation you paid them. Instead of ensuring lives for 5 lakh rupees, raise it to 50 lakh rupees for all partners?" Salauddin said.
According to the union leader, children of delivery workers would be happier if Zomato did not cheat their parents and treated them like human beings.
"We will encourage children to see their parents at home in the evenings or on weekends," says the manager. Besides, many children of your ''partners'' have no choice but to spend much of their day on socializing, so you can keep an eye on opportunities to reduce their income.
Salauddin advised Goyal to transfer major shares in Zomato to its delivery workers, since he called them "partners."
"Maybe that would be a better way to convince us that you respect your partners." After all of them unpaid and underpaid work, the company has created wealth.
Goyal explained in his communication that the Zomato Future Foundation will be open to donations from other Zomato employees.
"We will also investigate other fundraising opportunities for the ZFF," he said. He said, however, there will be also a board of directors for the Zomato Future Foundation.
Last year, the Indian Federation of App Based Transport Workers (IFAT) where Salauddin is the National General Secretary filed a public interest litig (PIL) in the Supreme Court to demand social security benefits for app-based transportation and delivery workers.
Zomato was not satisfied with the demands of labor rights and legislative protections, according to Salauddin.