Contribution
As a loyal member of the All-Party Parliamentary Group for Cycling & Walking—with an emphasis on the cycling rather than the walking—I support the noble Lord, Lord Berkeley, on this, and I will explain why. As he indicated, what is behind this amendment is partly what is leading certain noble Lords around the Chamber to pepper the noble Lord, Lord Hendy, with a series of curveballs about e-bikes in all sorts of shapes and illegal forms.
The All-Party Parliamentary Group for Cycling & Walking has just issued a rather alarming report called Unregulated and Unsafe: The Threat of Illegal E-Bikes. It has a specific chapter in it called:
“The role of delivery platforms and the gig economy”.
This evening, we are talking about two intertwined issues. First, there is an employment law issue. At the heart of the Bill is a wish by our new Government to rebalance what they view as an imbalance that has occurred during successive Conservative Administrations between the rights of workers, particularly unionised workers, and the rights and freedoms of employers. Whatever your view on that, what we are talking about today is a good example of an area of employment that is using slightly questionable tactics to avoid recognising its rights and responsibilities towards its workforce.
Your Lordships may recall that, a few years ago, when the phenomenon of Uber started taking over and assailing the black cab business here in London, there was a long debate and a big issue around Uber claiming again and again that the people who were driving for it were not its employees. In successive cases, it was taken to court and eventually it had to admit that the people who drive for it are actually employees and have some rights as employees.
We have a very similar situation with delivery platforms. These are the delivery platforms where, if you have a craving for a peanut butter and pineapple pizza at 3 o’clock in the morning—which, being married to an Italian, I certainly hope you do not—you can simply reach for your smartphone and it will be delivered to your door fairly quickly.
Those large platforms are basically doing what Uber did originally. They do not recognise the people who are driving for them as employees; they are said to be contractors—indeed, they allow the contractors to nominate people to substitute for them, people who have no commercial or contractual relationship with the company whatever. One of the larger delivery platforms, related to Deliveroo, successfully managed to win a case in the Supreme Court brought by the Independent Workers Union of Great Britain, which was aware that this particular arm delivered food around London and other cities, largely using unregulated and very fast e-bikes. The company successfully argued against the union that these were not employees, and it used the fact that the people who ride for it could substitute others as part of its defence, which was accepted by the High Court. So we clearly have a strange loophole here that is harmful for those workers and is driving all sorts of unfortunate behaviour.
In evidence, I turn back to the report of the all-party group and the issue about the role of delivery platforms and the gig economy. In its written evidence, London Councils said:
“Many delivery companies are set up as Platform companies, with riders classed as self-employed so companies are therefore not required to provide health and safety measures. Platform companies only take an advisory role in safety standards for riders, not mandating vehicle mode or collision reporting, therefore avoiding any financial implications. This means there are no checks and balances in place for the safety of the vehicles used for deliveries, the riders themselves and the impacts on other road users”.
In respect of evidence from one of the platforms—Just Eat, which noble Lords may have seen written on the back of mopeds with L-plates on or illegal e-bikes—the report said:
“Pay for riders per drop has declined in recent years, requiring ever longer shifts with ever more deliveries per hour in order for a rider to earn sufficient money”.
We see vehicles or e-bikes constantly jumping red lights, narrowly missing pedestrians and weaving in and out of traffic, but they are doing it because the way in which they are compensated requires them to make the maximum number of deliveries in the shortest possible time, which obviously encourages speeding and avoiding road traffic laws, red lights and things like that. I suspect that many noble Lords or members of their families have had experiences of looking around rather nervously even when they cross a zebra crossing because of what may suddenly assail them.
Lastly, this is written evidence—and it is a tribute to the noble Baroness, Lady Blake of Leeds, who is not in her place because this is not a Bill that she is involved in—from Leeds City Council, which has the same problems. It says:
“In addition to the safety of e-bikes, we would like to work with government to improve the industry’s employment and verification practices to address account sharing, where couriers can substitute deliveries to others who may not have a right to work in the UK. FDC [food delivery companies’] business models currently rely on riders themselves to confirm their eligibility to work, and this can enable illegal working. Alongside this, we would like to cover how to reduce the time pressure on riders to make deliveries, driving hours, and platforms’ responsibility for their riders’ safety”.
The councils have made a compelling case for this, as has the noble Lord, Lord Berkeley. I suggest that for the Government to look at this would align with much of their intent in this Bill.