CUPW and Foodora Reach Settlement for Couriers

In the News/
25 August 2020
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[TORONTO], August 25, 2020 – On April 27, 2020, Foodora Canada ("Foodora") filed a notice of intention to make a proposal (“Proposal”) under the Bankruptcy and Insolvency Act. Foodora continued to run its business through to the end of the day on May 11, 2020.

On July 8, 2020, Cavalluzzo LLP ("Cavalluzzo”) was appointed by the Ontario Superior Court of Justice as Representative Counsel to all the Foodora couriers who are represented by the Canadian Union of Postal Workers ("CUPW") who were actively providing services to Foodora when it announced its intention to make a Proposal. Prior to acting as Representative Counsel, Cavalluzzo assisted CUPW in becoming the first Canadian union to be certified to act on behalf of workers in the gig economy. Koskie Minsky LLP (“Koskie Minsky”) was appointed to act as Representative Counsel for Foodora couriers who were not represented by CUPW. Both Representative Counsel objected to Foodora’s Proposal as it did not provide any compensation to the vast majority of Foodora’s couriers.

Cavalluzzo is pleased to announce that a settlement was reached between Cavalluzzo/CUPW, Koskie Minsky, Foodora Inc., and Foodora's parent company, Delivery Hero SE ("Delivery Hero").  Delivery Hero has agreed to make payments to the couriers to compensate them in light of Foodora’s exit from the Canadian market. Delivery Hero will pay $3.46 million, to be shared between over 2,000 couriers represented by Cavalluzzo/CUPW and Koskie Minsky. The settlement also resolves ongoing claims by CUPW against Foodora Canada and Delivery Hero that are currently before the Ontario Labour Relations Board.

Ryan White, a partner at Cavalluzzo, states: "We are proud to have worked with the Canadian Union of Postal Workers to achieve this settlement for Foodora couriers. Gig economy workers have provided essential services during the COVID pandemic and this settlement will provide much needed assistance during an unprecedented time. The settlement also underscores the important role that unions play in the gig economy and that Representative Counsel play in helping workers in times of crisis."

More Information about the settlement and Cavalluzzo’s role as Representative Counsel can be found here.

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