Drivers delivering cars for taxpayer-funded disability scheme ‘were only paying £ 2.30 an hour’ Business News

Drivers delivering cars under a taxpayer-funded disability scheme say they are only paid £ 2.30 per hour – just over a quarter of the statutory minimum wage.

The drivers work for BCA Logistics, which is part of the owner group of Webuyanycar, which has a contract with the Motability program to deliver and collect rented cars to disabled drivers. Motability receives its income directly from the Department of Work and Pensions (DWP).

Motability is one of BCA’s main customers, alongside BMW, Volkswagen and Mercedes. BCA is also supplying vehicles to Cazoo, the online used car platform that is about to go public for a value of $ 7 billion (£ 5 billion), making it one of the UK’s most valuable tech startups.

BCA chief executive Avril Palmer-Baunack collected £ 29million in salary and bonuses in 2018, while drivers are often only paid £ 60 for shifts which they believe can be short-lived. extend to 1pm, which equates to an hourly rate of just £ 4.61.

When travel costs are deducted, it often goes down much more, say drivers. They say they feel “degraded and exploited” by the rates of pay but have little choice but to agree to the terms.

Law firm Leigh Day plans to launch legal action against BCA this week on behalf of potentially thousands of drivers who lawyers say have been wrongly denied basic workers’ rights. This is the latest in a string of claims against so-called odd-job companies over a landmark Supreme Court ruling against Uber.

Leigh Day’s attorney, Gabriel Morrison, said the BCA pilots had a “strong and winnable” claim. “As the Supreme Court pointed out in the Uber case, employment laws are designed to protect vulnerable workers from unfair treatment and low wages,” he said.

“Despite these laws, BCA deprived its drivers of vacation pay and the national minimum wage for a long time.”

BCA maintains that it acted legally and that its drivers are independent contractors and therefore do not have to be paid minimum wage. The company did not dispute the claim that the drivers’ wages averaged between £ 4 and £ 5 an hour.

Treating drivers as entrepreneurs allows BCA to pay less taxes and national insurance contributions than if the drivers were recognized as workers. Meanwhile, disabled drivers who use the Motability program, which pays the BCA, have seen their benefits cut in recent years as the government seeks to save money.

The DWP declined to comment directly on the salary allegations or commit to investigating the case.

A spokesperson said: “It is illegal not to pay the minimum wage and we are convinced that no employer should bypass their workers, regardless of their size or industry.”

Motability Operations Limited also declined to comment on the allegations, but said it maintains a “rigorous supplier screening and review process and engages regularly with all of our suppliers to ensure they comply with all regulations and employment requirements ”.

What does the Motability program do?

Motability provides cars, wheelchair accessible vehicles and scooters to those in need. Eligible people can use their mobility allowance to pay for the cost of renting the vehicle and the government pays this directly to Motability Operations Limited, the company that rents the cars.

Its service has been rated “excellent” by the National Audit Office and is considered a lifeline for many people with disabilities. However, the plan has also been criticized for the high executive compensation and the achievement of excessive profits that have been held in reserve rather than reinvested.

BCA drivers collect the cars at the end of their lease, assess them for damage, and deliver them to dealerships and depots for resale.

Cazoo, who recently appointed former Labor MP Luciana Berger as a member of the board for environmental, social and governance issues, said: “We are not aware of the practices you are referring to, ne believe it is acceptable for a business to pay less than the legal minimum wage and take these matters very seriously. We strive to ensure that our entire supply chain meets all requirements. ”

BCA might not be a household name, but if you’ve bought a used car in the UK in the past decade, there’s a good chance it was run by the company.

Behind the scenes, BCA dominates the UK’s £ 50 billion used car market. It buys vehicles from individual sellers through Webuyanycar and has exclusive agreements with manufacturers such as BMW, Mercedes and Volkswagen to purchase cars when customers’ leases end.

It sells around 1 million cars annually through its auctions, supplying dealerships across the country and its own online retail platform, Cinch.

Cazoo, who buys cars from BCA, has spent a lot on marketing. It sponsors the Aston Villa and Everton football clubs.


BCA’s army of drivers assess damage to cars before dropping them off at customers or depots, and then traveling long distances home by public transport.

Payroll documents reveal jobs …

More about this article: Read More
This notice was published: 2021-05-18 22:59:36