Foodora Couriers Can Legally Unionize: Here is What That Means for the Gig Economy Employers

The relationship between gig economy workers and their employers in Ontario is undergoing a major shift. The Ontario Labour Relations Board (OLRB) made a decision yesterday about Foodora couriers’ right to unionize. The Foodora couriers and the Canadian Union of Postal Workers (CUPW) conducted a union drive, but Foodora challenged it, arguing the couriers were not employees but independent contractors, therefore no entitlement to organizing and unionizing.

The OLRB rejected Foodora’s argument, stating that the couriers were dependent contractors a status between an employee and independent contractor. This means they have similar rights to employees and are able to form a union. The OLRB highlighted certain aspects of the relationship between the couriers and Foodora. Each aspect showed that their relationship is not that of an independent contractor, including monitoring job performance and disciplining for poor performance, the couriers are not able to negotiate their own contracts, and they do not control their own shifts.
This is a significant change for labour and employment law, and for union drives moving forward. Other gig economy employers (Uber and Lyft in particular) need to be aware that their workers may attempt to make a similar push for a union. If employers are looking to avoid a unionized workplace, they will need to take a proactive approach and have a lawyer take an in depth legal analysis of the relationship between worker and employer. A good labour and employment lawyer can evaluate the likelihood of a union drive occurring – especially based on this recent decision. Hum Law identify the workers in the gig economy that are more likely to be considered dependent contractors or employees, rather than independent contractors.

Legal and financial concerns should not be centered solely around possible unionization. Individual gig economy workers can bring lawsuits against their employers, claiming rights that employees are entitled to. A gig economy worker who is let go by their employer thinking this could be done easily may be required to provide that employee termination pay. There is a significant amount of potential liability facing a gig economy employer. Only with proper legal advice can an employer best prepare for the changes coming form the landmark OLRB decision about Foodora.

At Hum Law we work with you to proactively design policies to mitigate risks associated with your worker or employee contracts. To ensure your contracts are not an organizational liability because of misclassified workers or open ended wording, contact us to speak with someone today.