Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Uber's UK driver benefits highlight broader gig-worker challenges

Uber's UK driver benefits highlight broader gig-worker challenges

Uber’s proposal to expand benefits to British drivers following a court defeat last month has not put an end to the fight for better gig-worker pay in the UK and around the world, an issue that has become a flashpoint for the labor movement.

On Tuesday, Uber Technologies Inc said it would offer guaranteed entitlements to its more than 70,000 UK drivers, including holiday pay, a pension plan and limited minimum wage.

Uber has said it wants to expand limited benefits similar to those offered to drivers in the UK across all of Europe and the United States.

But British driver activists who brought the legal challenge said the proposal did not fully comply with the court ruling and vowed to keep up the pressure.

Uber shares were down 4.7% at $56.08 on Wednesday afternoon, with analysts at Morgan Stanley projecting a hit of up to $300 million to Uber’s core earnings to finance the added benefits.

Uber declined to comment on the total costs for implementing the measure.

The UK skirmish is the latest in a line of challenges over the rights of gig workers that could reshape the on-demand ride-hail and food delivery industry, in which most workers are considered independent contractors with few legal rights and benefits.

Worker groups, labor activists and some legislators across Europe and the United States, including U.S. President Joe Biden, have pushed for drivers to be recognized as employees instead, at times winning in court.

Uber, for many years staunchly opposed to changing workers’ independent contractor status, in recent years began to advocate for a new compromise model under the leadership of Chief Executive Dara Khosrowshahi. Under that proposal, gig workers would maintain their flexibility as independent contractors but be provided with additional benefits - a model that in many countries would require updates to existing labor laws.

The so-called third way model had its first success in California last year, when voters approved a gig company-sponsored ballot measure that cemented app workers’ contractor status with additional benefits. The company has offset at least some of those costs with fare increases.

Khosrowshahi in an op-ed in British newspaper the Evening Standard on Wednesday said the new UK framework was in line with the company’s U.S. and European Union-wide advocacy for changes to existing labor laws, despite concrete benefits not necessarily serving as a blueprint for everywhere else.

The UK announcement follows a ruling by the country’s Supreme Court last month, which found that Uber drivers had to be classified as “workers” - a unique status available under UK employment law that situates drivers between independent contractors with no benefits and full-fledged employees with vast benefits.

‘BETTER OFF’


Uber said drivers will be at least 15% better off, if they opt in to the pension plan under the new scheme.

But James Farrar and Yaseen Aslam, the two lead drivers in a 2016 employment tribunal case that Uber unsuccessfully contested all the way to Britain’s top court, said the company’s minimum wage proposal violated the court’s ruling.

Uber said minimum wage, which stands at 8.72 pounds ($12.13) per hour for those aged 25 and over, would apply only “after accepting a trip request and after expenses.” It also said that drivers on average earn an hourly 17 pounds in London.

Farrar and Aslam said the decision to not pay drivers for the time they spend waiting for a passenger would short-change them “to the tune of 40-50%.”

“We cannot accept anything less than full compliance with legal minimums,” the drivers said in a statement.

Cruising around while waiting for a trip accounts for as much as a third of the time drivers spend behind the wheel with the app turned on, according to several U.S. studies.

Uber’s Northern and Eastern Europe boss, Jamie Heywood, in an interview with Sky News defended the firm’s plan and said the company would remain competitive on pricing.

“If we decided that logged-on time on the app was also working time, that would mean that we would need to introduce shifts telling drivers when they can work, which most drivers don’t want to do, and we’d also need to introduce exclusivity terms,” he told Sky News.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×