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Former Uber drivers Yaseen Aslam, left, and James Farrar pose for the media outside the Royal Courts of Justice ahead of a legal hearing over employment rights in London on Oct. 30, 2018.Alastair Grant/The Associated Press

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

On Tuesday, Uber said it would offer guaranteed entitlements to its more than 70,000 British 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 Britain 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 per cent at US$56.08 on Wednesday afternoon, with analysts at Morgan Stanley projecting a hit of up to US$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 British 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, labour activists and some legislators across Europe and the U.S., 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 officer 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 labour laws.

The 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.

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

The British announcement follows a ruling by the country’s Supreme Court last month, which found Uber drivers had to be classified as “workers” – a unique status available under British 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 per cent better off if they opt into 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 ($15.09) an hour for those at the age of 25 and over, would apply only “after accepting a trip request and after expenses.” It also said drivers on average earn an hourly £17 in London.

Mr. Farrar and Mr. 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.

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