BCA could be set to face a legal case over hourly pay rates equating to as little as £2.30-per-hour for its delivery drivers.
In what would be the latest in a string of claims against so-called gig economy companies in the wake of a landmark Supreme Court ruling against Uber, law firm Leigh Day plans to launch a legal claim against BCA this week on behalf of potentially thousands of drivers.
A report in the Independent newspaper this week highlighted the issues allegedly faced by drivers who transport vehicles for UK car retailers, manufacturers and leasing companies.
The Independent reported that, while BCA chief executive Avril Palmer-Baunack collected £29m in salary and bonuses in 2018, drivers are classed as outside contractors and are often paid just £60 for shifts which they say can stretch to 13 hours – equating to an hourly rate of just £4.61.
It is also accused of depriving drivers of their holiday rights under their contractor status.
BCA told AM that it is “confident” of the legality of its operating model and commercial relationship with its self-employed contractors – suggesting it delivers mutually beneficial flexibility. Read its response here.
One driver, who told the newspaper that he had taken on driver work with BCA after his work in the entertainments dried-up during the COVID-19 pandemic, alleged that he recently received £20.60 after travel expenses for a nine-hour day – a rate of just £2.29 per hour.
He described the pay as “very exploitative” and “completely unacceptable”.
Leigh Day solicitor Gabriel Morrison said BCA drivers have a “strong and winnable” claim against the remarketing, logistics and car retail business.
He said: “As the Supreme Court in Uber pointed out, employment laws are designed to protect vulnerable workers from unfair treatment and low pay.
“Despite these laws, BCA have deprived their drivers of holiday pay and national minimum wage rights for a long time.”
The article in the Independent highlighted BCA’s role as a supplier to the tax payer-funded Motability scheme.
Neither Motability or the Department for Work and Pensions (DWP) would comment on BCA’s employment practices, however.