Thanks to corporate lobbying, not much has changed for drivers and couriers working with Uber. Concerns about low wages and lack of protection continue to plague its workforce. And Uber still resists attempts to recognize these workers as employees. One thing has changed, though – Uber’s attitude. The company once adopted a combative approach to any regulation that might affect it. With a change at the helm, it’s striking a more conciliatory tone. But make no mistake. The message stays the same. Uber does not employ drivers and couriers and must not be regulated as such. In effect, it’s peddling old wine in new bottles.
When Uber Masked Corporate Lobbying With Progressivism
Uber is facing pushback on worker rights all over the world. In its fight against regulation, Uber has a new weapon – corporate lobbying. From white papers to ballot proposals, the company is doing it all. And all this happens under the garb of progressivism. How? By claiming its ideas favor the very workers it exploits. Here are some instances.
Publishing a White Paper
In December 2017, the European Court of Justice (ECJ) ruled that Uber was a taxi company and not a digital platform. With this loss came bids to deter regulation. In February 2018, Uber published a white paper on Work and Social Protection in Europe. This marked the company’s shift from brash aggression to constructive diplomacy. With it, Uber tries to portray itself as a champion of “self-employed” drivers. It insists it isn’t an employer. But highlights the “benefits” it offers to independent contractors. Far from complying with laws, it suggests that social policies should adapt to the changing employment landscape. This, it states, will serve the public interest by making it easy for people to take up flexible work. Uber advocates the same protections for its drivers and couriers as other workers. But it puts the onus for this on public funding. In May, it announced insurance coverage for 150,000 drivers and couriers in Europe. The message? Uber doesn’t need regulation. It takes voluntary steps for worker benefit.
Influencing the Working Conditions Directive
The European Commission launched its Social Pillar initiative in November 2017. The intent was to improve working and living conditions in Europe. Introducing the Directive on Transparent and Predictable Working Conditions the following month was a part of this. The directive had two objectives. The first was to expand worker rights. The second was to extend them to workers engaged in new, flexible, non-standard forms of work. This would be done by redefining the scope of the term “worker.” But BusinessEurope, a powerful employer lobby group, had other ideas. Ironically, while fighting the employer tag, Uber is a part of this group. They lobbied to make the definition a national decision. Their national bodies then fought to keep the term unchanged. The argument against including platform workers mirrored Uber’s tune. The risk of the self-employed being misclassified as employees. Uber also made its own efforts to shape European law. In January 2018, it met Employment Commissioner Marianne Thyssen’s Head of Cabinet Inge Bernaerts to discuss the directive. The next month, it sent her the white paper with its “reform” ideas.
Co-authoring an Academic Paper
In September 2018, Uber co-published a paper with two Oxford academics. The timing was perfect. In November 2017, a London court ruling granted drivers overtime and vacation time benefits. Uber was to appeal the decision in a few weeks. The paper concluded that most of its London drivers were happy, earned more than the minimum wage, and worked with Uber by choice. It stated that over 80% of drivers valued flexibility over paid vacation and minimum wage. The strategy was well thought out. Partnering with reputed institutions lent legitimacy to the study. The paper drew on Uber’s own anonymized data and a survey it commissioned. By not making the data public, Uber had complete control over the evidence. This evidence could then be used to influence policy.
Drafting and Lobbying California’s Prop 22
In 2019, California’s legislature passed Assembly Bill 5 (AB5). The law made it difficult to classify workers as independent contractors. At first, Uber and other app-based companies refused to comply. Then, fearing a threat to their working model, they drafted a ballot proposal – Proposition 22. This watered-down alternative offered benefits like minimum pay and insurance. But workers remain contractors, with no protections. Uber argued that this was in the best interest of gig workers. It protected what they cherished most – flexibility. Gig brands spent over $200 million on an aggressive campaign. The result? The referendum passed with 58% of the vote.
Lobbying for a Prop 22 Style Law in Europe
In Europe, Uber faces a two-pronged battle. On the 19th of February 2020, the UK Supreme Court ruled that Uber drivers were “workers”. And, as such, they are entitled to rights such as minimum wage and paid holiday. A few days later, on the 24th of February, the European Commission began consultations with labor and management representatives. The aim is to draft legislation to regulate the gig economy. To combat this, Uber published a white paper, “A better deal; partnering to improve platform work.” You can read about our take on it here. The paper recognizes the challenges gig workers face. At the same time, it calls for platforms to be exempted from employment laws. It advocates benefits and protections for workers while allowing them to be “independent.” It concludes with Uber’s desire to work with policymakers to achieve this end. If that doesn’t sound like Prop 22, we don’t know what does.
Related Post:
- California Passes Prop 22, What Does This Mean For Gig Workers?
- How Much Did On-Demand Service Companies Spend In The 2020 Election?
- Prop 22 In Europe: Breaking Down Uber’s White Paper ‘A Better Deal’
Conclusion
Under new management, Uber has stuck to its mantra, “We do the right thing. Period.” Through corporate lobbying, it hopes to reinforce this message. Creating a narrative around flexibility shifts the focus from pay and fairness. By preempting regulation, Uber is trying to garner favor for its business model. It is also putting itself in a position of influencing laws that regulate it. It wouldn’t be a stretch to say it’s making its own laws.