IWGB v CAC: UK Appeal Court Weighs in on Deliveroo Riders' Status

The UK's Appeal Court has weighed in on the status of Deliveroo riders, a case that's been making headlines for years. IWGB v CAC is the name of the case, which centers around whether Deliveroo riders should be classified as workers or self-employed.

The IWGB, a trade union, has been fighting for better rights and protections for the riders, who they argue are entitled to benefits like paid holidays and the minimum wage. This is a crucial distinction, as workers are entitled to these rights, while self-employed individuals are not.

Deliveroo riders, who are at the heart of this case, are essentially contractors who work on their own schedules, using their own vehicles to deliver food to customers. They're paid per delivery, but don't have the same benefits or protections as employees.

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The parties involved in the IWGB v CAC case presented their arguments and positions in the court.

The Union argued that the CAC's refusal to hear its application breached its rights under Article 11 ECHR. The Union also contended that paragraph 35 of Schedule A1 should be "read down" to ensure compatibility with Article 11 or, alternatively, a declaration of incompatibility should be made.

The Union relied on international law and European Court of Human Rights decisions, including Sindicatul and Manole, to support a broader interpretation of "employer" and the right to collective bargaining beyond strict contractual relationships.

The Union submitted that the exclusion from existing legislative machinery constituted an unjustified interference with Article 11 rights.

The CAC and The University contended that paragraph 35 of Schedule A1 is clear and that the statutory scheme does not permit recognition applications where an independent trade union is already voluntarily recognised.

Here are the key arguments presented by each party:

The Appellant's Arguments are centered around the Union's claim that the CAC's refusal to hear its application breached its rights under Article 11 ECHR. This article guarantees the right to freedom of association, which includes the right to collective bargaining.

The Union argues that paragraph 35 of Schedule A1 should be "read down" to ensure compatibility with Article 11. This means that the existing legislation should be interpreted in a way that aligns with the Union's rights under the European Convention on Human Rights.

The Union also contends that The University should be considered the de facto employer due to its substantial determination of workers' terms and conditions. This would entitle the Union to seek recognition, even if The University does not have a direct contractual relationship with the workers.

The Union relies on international law and European Court of Human Rights decisions, including Sindicatul and Manole, to support a broader interpretation of "employer" and the right to collective bargaining beyond strict contractual relationships.

Here are some key points from the Union's arguments:

The CAC and The University contended that paragraph 35 of Schedule A1 is clear and that the statutory scheme does not permit recognition applications where an independent trade union is already voluntarily recognised.

They argued that the CAC has no power to declare incompatibility under the Human Rights Act and that any challenge to paragraph 35 must be addressed by the High Court.

The University submitted that it is not the employer of the workers in the proposed bargaining unit because there is no contractual relationship between the workers and The University.

The statutory definitions of "worker" and "employer" in the 1992 Act require a contractual relationship, and any extension of these definitions is a matter for Parliament, not the CAC.

The Respondents emphasized the wide margin of appreciation afforded to the state in regulating collective bargaining and that no breach of Article 11 occurred.

The University highlighted that it does not control or determine terms and conditions of the workers and that outsourcing arrangements are legitimate organisational choices protected by economic freedoms.

They argued that the statutory scheme promotes stability, voluntary bargaining, and avoids competing bargaining units, which justifies the restrictions under Article 11.

The court process in the IWGB v CAC case was a complex and nuanced one. The court analyzed the statutory scheme under Schedule A1 of the 1992 Act, focusing on paragraph 35, which precludes the CAC from admitting an application for recognition if there is already a voluntary collective bargaining agreement with an independent trade union covering the relevant bargaining unit.

The court considered relevant case law, including European Court of Human Rights decisions, which recognize the right to collective bargaining under Article 11 but do not impose a universal right to compulsory recognition by statute. This suggests that the court was mindful of international law and its implications on domestic legislation.

The court emphasized the wide margin of appreciation afforded to the state in regulating collective bargaining arrangements and the policy objectives underlying Schedule A1, including encouraging voluntary bargaining, avoiding competing bargaining units, and promoting stability. This indicates that the court was aware of the broader policy context in which the 1992 Act operates.

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The court held that the statutory definitions of "worker" and "employer" require a contractual relationship, and that the University is not the employer of the workers in the bargaining unit as there is no contract between the workers and The University. This is a critical finding that has significant implications for the recognition of trade unions in the UK.

The court rejected the concept of a "de facto employer" for the purpose of collective bargaining recognition under the 1992 Act, noting that any extension of definitions is a matter for Parliament. This suggests that the court was reluctant to expand the scope of the 1992 Act beyond its current boundaries.

The court found that the Union's Article 11 rights were not interfered with because the Union remains free to seek voluntary collective bargaining arrangements with both Company A and The University, and can apply for compulsory recognition with the actual employer, Company A. This is a significant finding that has important implications for the balance between trade union rights and the interests of employers.

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