The article I analyzed focused on the ongoing issue of classifying gig economy workers as either independent contractors or employees. It focused on Uber and Foodora and highlighted their ongoing legal battles. On one hand, the companies suggest that they do not exert significant control over their couriers’ work in order to prove they are independent contractors. The opposing view comes from the workers who believe their flexibility and independence is limited by the company’s control, and thus are demanding rights given to employees (. This issue is very important as the determination of these two cases will create a precedent in defining the worker-employer relationship. With the gig economy growing and already in possession of at least 8% of the Canadian workforce (Stats Canada, 2019), these decisions are likely to influence the lives of millions. To address the issue the courts should examine all of the factors relevant to the distinction of the worker-employer relationship and make a weighted-criteria decision to resolve the issue at hand.
I think the main cause of this issue is something that drives and motivates almost every business; money. Companies like Uber and Foodora want to avoid giving their workers entitlement to the Employment Standards Act to avoid additional operating costs. For example, if the workers were determined to be employees rather than independent contractors the company would likely be forced to provide better compensation, benefits and protections.
When determining the status of the worker-employer relationship it is important to look at multiple factors which contribute to the structure of the work behind performed. The CRA possesses an employee or self-employed guide which highlights the factors which contribute to the distinction of the relationship. Things like economic dependance, control over the work, ownership of equipment are just a few of the components which could be leveraged in the decision. I believe the courts should address all of the factors in the CRA guide when making their decision, since it would be unjust to choose only a few components and determine that the worker is more like one thing than another.
The article alludes to the fact that these specific workers possess characteristics of both employees and independent contractors. For example, the workers provide their own equipment for providing rides and delivering food which makes them appear as independent contractors. At the same time, the companies exert control over the work through task completion algorithms and punitive performance measures; characteristics relating to employees. If it were up to me I would resolve the issue by determining which factors in the CRA framework are most relevant to the business structure being evaluated, and assign a higher importance (weighting) to these factors in the decision-making process. I believe this would allow for an informed decision without ignoring any elements of the framework.
So what elements of the framework do you think are most relevant to these specific workers and how would you classify said workers?
Looking forward to hearing everyone’s thoughts.
References
Jeon, S.-H., Liu, H., & Ostrovsky, Y. (2019, December 16). Measuring Gig Econony in Canada Using Admistrative Data. Retrieved February 8, 2020, from https://www150.statcan.gc.ca/n1/pub/11f0019m/11f0019m2019025-eng.htm
Mojtehedzadeh, S. (2019, November 6). Heavyweights Uber, Foodora in separate battles that could impact gig economy. Retrieved February 7, 2020, from https://www.thestar.com/news/gta/2019/11/06/heavyweights-uber-foodora-in-separate-battles-that-could-impact-gig-economy.html
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