Summary
In July 2002, the Union claimed that most employees at the Company were union members and sought recognition for bargaining rights. The company suggested involving the Ministry of Labour, which prepared a ballot for February 2004. The company obtained an injunction preventing the ballot, and the matter was referred to the IDT.
The company argued that the individuals in question were independent contractors and therefore ineligible to vote in the union representation ballot. They stated that these workers were engaged to perform specific tasks and paid on a task-by-task basis without the direction, supervision, and control typical of an employer-employee relationship. It also argued that the individuals did not receive employer-related statutory benefits, though the company deducted and paid relevant taxes as per legal requirements The union conversely contended that the individuals were workers of the company as evidenced by the terms and conditions of their work, which included Fixed working hours, Vacation leave and other benefits, statutory deductions made by the company and a heavy integration into the company’s operations.
Chairman Chapman, and Member Lewis of the tribunal found that the individuals were subject to the company's control and supervision. They arrived at this conclusion after examining the company’s organizational structure and determining that the set hours of work, and subjection to disciplinary procedures in some instances classified them as workers under the definition of the LRIDA. Consequently, the tribunal awarded the relevant persons were eligible to vote in the ballot.
Dissenting member Brown, conversely argued that the workers were independent contractors based on the degree of control exerted by the company, which he believed was insufficient to classify the workers as employees. Factors including differences in earnings, the individuals’ employment of apprentices, and the company’s failure to match statutory contributions were considered by Mr. Brown, who awarded that none of the persons were workers, and were therefore ineligible to participate in the poll for bargaining rights.
