Last week Uber announced that it would be granting UK drivers worker status. This status comes with benefits such as a minimum wage, vacation time, and a pension (if eligible). This change is the first time in its history Uber has yielded like this when it comes to worker rights.
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Uber Ends a Workers Rights Battle
This news comes a month after the British Supreme court ruled that Uber drivers are workers, not contractors. How so? Supreme Court rejected Uber’s argument that it was an intermediary. It judged that the company had control over the fares, and Uber dictated the terms that the drivers operate by to provide rides.
In an opinion piece published in the Evening Standard, Uber CEO Dara Khosroshahi said Uber is ‘turning the page on driver rights’ instead of continuing to battle.
But he acknowledged that Uber’s critics wouldn’t be patting them on the back because it has taken so long to act on drivers’ benefit.
Why Is Uber ‘Turning The Page”?
Khosroshahi acknowledged that gig platforms would have to work differently in different countries. Uber believes that the status quo of independent work is “not good enough” (remember, the CEO advocated for a “third way” for gig workers back in August of 2020). But it doesn’t believe that there is a one size fit all solution for the future of work.
Maintaining Flexible Work
Uber polled their UK drivers after the UK Supreme Court verdict in February. Two-thirds of them cherish the platform’s flexibility. Only 20% of them wanted more workers protections if they have to give up the flexibility.
Uber is making this move to “ensure that drivers can get flexible work when they want, and protection and benefits when they need.”
70,000 Uber Drivers Will Benefit
The 70,000 UK drivers on Uber’s platform will be treated as workers.
Keep in mind; this does not mean that they are going to be treated as employees. In the US, you can be an independent contractor or an employee. It’s not the same in the UK. There are three classifications – contractors, workers, employees – and they have different protections attached to them. Employees have the most protections.
Uber is granting UK drivers worker status. You can say that this is an upgrade from the contractor status, but it doesn’t come with the kind of protections that employees enjoy.
What’s the difference? Workers will have a minimum wage and paid vacation times. But, they do not get benefits like maternal leave, sick leave, and unemployment insurance.
The minimum wage for UK drivers will be £8.91 from April 1, 2021, onward for individuals over age 23. Vacation time benefits mean – UK drivers will receive 12 percent of their earnings every two weeks
What’s Next?
The Covid pandemic has changed the world economy, and most likely, the post-pandemic economy will be different. As a result, Uber seems to want to work toward that new future worldwide when it comes to gig work. Most likely, this means more laws like Props 22, which we saw in California, which allowed drivers some benefits without having Uber classify them as employees.
Khrosrowshahi’s piece ends with an invitation for their competitors (ahem, Lyft) and other gig economy brands to “rethink their approach and join us in taking this step.”
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