Scandal in Floridsdorf: Clevy Ltd. under suspicion of exploitation!

Scandal in Floridsdorf: Clevy Ltd. under suspicion of exploitation!

A current case is causing a stir in the Vienna logistics landscape: The financial police have started investigations against Clevy Ltd., a logistics partner of the Chinese low-cost retailer Temu. This happened in a warehouse in Floridsdorf, where authorities discovered that workers were being employed under illegal conditions. On October 6th, 14 people were found during an inspection, including three from Clevy Ltd. and eleven from a Graz subcontractor. The eleven workers stated that they were self-employed, which is considered “false self-employment” under current law. This could potentially be part of a broader problem in the logistics industry, which continues to bring to light exploitative practices.

As Ludwig Dvořák from the Vienna Chamber of Labor states, this is an “industry problem”. Many of the logisticians employed are actually hidden temporary workers who are often not paid correctly. Another worrying detail is the lack of valid residence permits for some workers, which could lead to pending deportations, according to reports. The Chamber of Labor therefore demands that logistics companies also be liable for the wages of their temporary workers, even if they are hired by insolvent companies.

Protection for the self-employed is not sufficient

Another legal problem arises with regard to false self-employment. At the end of November 2024, the Federal Social Court decided on a case involving a lecturer at an adult education center. Here the lecturer was employed by the educational institution as a freelancer, but the German pension insurance company and the court viewed this as bogus self-employment. The decision could also affect teachers in logistics, although a new legal regulation in the Fourth Social Code is intended to offer a certain level of protection specifically for educators. However, this regulation does not apply to the logistics industry, according to lawyer Axel Salzmann.

Impact on the economy

The effects of the existing system should not be underestimated; In the construction industry, around 350 million euros in tax revenue are lost every year due to social fraud practices. At the same time, the warehouse in Floridsdorf remains closed until further notice and activities on site have been suspended. In the meantime, the parcel delivery services Post and DPD have suspended returns to Temu and are now forwarding them to an address in the Czech Republic.

However, there are not only negative headlines in Vienna. One initiative is planning to declare November 5th, the anniversary of the 1978 referendum against the nuclear power plant in Zwentendorf, an ecological holiday. On that day, a majority of the population - 50.5 percent - voted against the commissioning of the nuclear power plant, an event that went down in history.

The view of working conditions in logistics must change so that such practices become a thing of the past in the future. The solution lies not only in the legal classification of employment relationships, but also in awareness of the risks of exploitation and the responsibility of companies. “There’s something going on,” as the saying goes, when it comes to protecting our workforce.

But the topic of logistics is only part of the big picture that currently shapes Vienna. A new exhibition at the Jewish Museum highlights themes of Jewish identity and racism as the number of non-degree students in the city has fallen by 3.3 percent. Building materials retailer Quester is also struggling with bankruptcy, and the construction industry is currently facing some challenges.