The generational gap between boomers and Gen Z’s is growing at a rapid rate. With new technological trends being introduced, boomers are finding it hard to keep up with the changing dynamic of daily activities. Companies are actively trying to create a more convenient lifestyle for their consumers with rideshare apps, food delivery apps and even an app where you can get someone to walk your dog. While most Gen Z’s are willing to pay a little more for convenience, it seems as though boomers are finding it hard to adopt these trends. I recently had dinner with some family friends and the topic conversation fell on food delivery apps, all the parents in the room agreed that they didn’t understand why their kids would spend any money on delivery when they could just get the food themselves.
The gig economy in danger?
Uber and Foodora are some apps that have found success bringing convenience into daily life. These companies have been able to increase convenience for users, while keeping competitive pricing through independent workers engaging in short term work arrangements, this is known as the gig economy. Although this model has proven to be beneficial for both companies and consumers, it is not beneficial to the independent contractors working for these companies. As a result, Foodora drivers in Toronto are challenging their status as independent workers and are attempting to form a union, being the first of its kind in canada.
So form a union!
Unfortunately for foodora drivers, independent contractors do not have the right to unionize under provincial law. Some other features of an independent contractor include providing your own equipment, being able to subcontract work to others as well as the company that is contracting you cannot discipline their independent contractors. Foodora has already seemed to have violated one of the features, by way of weekly email which claims that declining 10% of orders gives you a warning and 15% would result in the driver being “deprioritized”.
What does this have to do with Uber?
On the other front, The Ontario Court of Appeals recently ruled Uber’s arbitration clause as an “unfair bargain” for workers. The clause states that the place of arbitration takes place in Amsterdam, Netherlands. The cost of initiating the arbitration process alone is $14,500 and this does not include the travel to the Netherlands, accomodation and counsel. In contrast, Heller (the man who filed the lawsuit) only makes $400-$600 working 40 hours a week. Following the Provincial courts decision, Uber appealed to the supreme court.
What does it all mean?
While Uber and Foodora are battling different cases, their cases might affect one another. Uber has used its arbitration clause to deflect class action lawsuits from uber drivers who are challenging their independent contractor status to form a union. If the supreme court rules in favour of Heller, this could set a precedent that could potentially collapse the gig economy.
What do you think?
Do you think Uber and Foodora drivers should be considered independent contractors? If drivers do unionize, how might this effect the relationship between drivers and their parent companies?
Sources
Balakrishnan, A. (2019, January 7). Court of Appeal invalidates Uber’s arbitration clause. Retrieved from https://www.lawtimesnews.com/practice-areas/labour-and-employment/court-of-appeal-invalidates-ubers-arbitration-clause/263364
Mojtehedzadeh, S. (2019, November 6). Heavyweights Uber, Foodora in separate battles that could impact gig economy. Retrieved from https://www.thestar.com/news/gta/2019/11/06/heavyweights-uber-foodora-in-separate-battles-that-could-impact-gig-economy.html
Jason Cooper's EMPR 200 Blog 
Hey Jason,
Loved your post and your take on the gig economy, it was very informative and opened my eyes to the possibility of unionizing gig economy workers. I was unaware of the Supreme Court case regarding Uber and their arbitration clause prior to reading your post and it definitely peaked my interest into further investigating it. This clause makes it nearly impossible for any driver to dispute an issue without taking out a small loan to do so. In regards to your question, Uber drivers are largely labeled as independent contractors due to the fact that they can choose the hours they work and how long they work for. Being without a set schedule, and with the ability to set your own work times, Uber says their drivers do not fall under conventional labour laws. I think in order for drivers to be happy and receive the benefits they desire, such as vacation pay, they must abide by a schedule set in place by Uber themselves wether it is “working betweens these times during these day” or hitting a certain amount of deliveries/hours of driving weekly. This would allow Uber to classify them as employees of the company and provide appropriate benefits to them under the labour laws. Without this I don’t see how drivers would be able to make a change. What do you think about this? Should Uber allow drivers to work off a set schedule if they wanted? How would this affect the platform? I personally would love to see Uber reduce their service fees and re-allocate them to the drivers as many customers do not tip (which is a huge form of additional income for the drivers).
Constantine
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