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Instacart Worker Delivering Groceries

Source: (Photo by David L. Ryan/The Boston Globe via Getty Images) / (Photo by David L. Ryan/The Boston Globe via Getty Images)

One of the smaller stories of the 2020 election season came in the form of Prop 22. Prop 22 sought to grant app-based transportation and delivery companies an exception to Assembly Bill 5 by classifying their drivers as “independent contractors” rather than “employees.” This essentially stopped any form of health benefits or 401k benefits from being a possibility for app-based workers. The prop passed by a 59% majority after ad-based warfare between those for and against the Proposition. Now, according to The Verge, Instacart is taking further action against employees who voted to unionize.

Instacart is laying off every employee who voted to unionize, Motherboard reports. The news comes as the company shuts down in-store operations at some grocery stores amid the coronavirus pandemic and doubles down on curbside pickups.

The layoffs impact 10 unionized workers at a grocery store called Mariano’s, in addition to other Instacart employees. The group in Skokie, Illinois, a suburb of Chicago, voted to unionize last year with the United Food and Commercial Workers Local 1546 (UFCW). It was a landmark victory for gig workers.

The win last year also marked the first time tech contract workers unionized. UFCW also revealed the layoffs will impact nearly 2,000 of the company’s 10,000 grocery store workers.

The shocking decision comes as Instacart’s popularity has skyrocketed during the pandemic. The grocery delivery app has provided a solution to millions of people who are either homebound or social distancing due to the deadly virus. Motherboard also noted that the company has reportedly done so well that they are “preparing to IPO” sometime this year.

Instacart is estimated to be worth around $30 billion, CNBC reported.

 

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