June 05, 2018

Gig economy delivery drivers pursuing legal action over employment rights

Gig economy delivery drivers pursuing legal action over employment rights

One of the largest British trade unions, the GMB union, is fighting for employment rights for delivery drivers from three different delivery firms, who all work for the online retailer, Amazon.

Following GMB’s succesful legal case against Uber and Deliveroo in 2016, the union is arguing that the three delivery firms erroneously class their workers as self-employed. GMB argues that the drivers are required to work in scheduled shifts controlled by Amazon and therefore do not have the flexibility that comes with being self-employed. Consequently, the drivers are calling for sick pay, holiday pay, and the National Minimum Wage.

In his article Employment protection, Stefano Scarpetta writes that “employment protection legislation can be justified by the need to protect workers from arbitrary actions by employers,” whilst acknowledging that protections can hinder an efficient allocation of labor.

Nigel Mackay, partner at Leigh Day, the legal firm representing the drivers, stated that seven drivers were involved in the case. Two of the drivers are claiming that they were fired from their jobs after they raised concerns about their working conditions. They argue that the large quantity of parcels they were assigned to deliver had resulted in excessive working hours and dangerous conditions for driving.

Tim Roache, general secretary of the GMB union, commented: “Companies like Amazon and their delivery companies can’t have it both ways—they can’t decide they want all of the benefits of having an employee, but refuse to give those employees the pay and rights they’re entitled to.” A spokesman for Amazon commented that all delivery providers are legally obliged to pay the National Living Wage and to follow all driving regulations to ensure the safety of their drivers.

The gig economy has been criticized for not providing workers with traditional employment protections. On the influence that trade unions can have in such circumstances, IZA author Alex Bryson writes that “trade unions maintain and improve workers’ terms and conditions through bargaining with employers,” whilst acknowledging that they can restrict employment flexibility, in his article, Union wage effects.

Visit our trade unions, collective bargaining, and the labor market page to read related articles.

For specific expertise on employment protections and trade unions, contact Stefano Scarpetta or Alex Bryson directly.