Uber to grant UK drivers minimum wage and paid vacation after court ruling

Uber will grant its drivers in the UK employee status, with minimum wage and paid public holidays, a world first for the American company and a 180 ° turn in the model of digital platforms in the country.

The American chauffeur-driven reservation giant said in a statement on Tuesday that Its more than 70,000 drivers in the country will benefit from these advantages from Wednesday, following a court ruling.

This is a sea change for Uber, whose drivers have so far been independent.

The platform acted quickly after launching a broad consultation with its drivers and barely a month after a resounding defeat at the British Supreme Court.

He ruled on February 19 that drivers can be considered “workers” and, therefore, receive the corresponding social benefits.

The court ruled in favor of a group of about 20 drivers who claimed this status given the time they spend logged in to the app and the control the company has over them, for example through reviews.

British law distinguishes the status of “workers”, who may receive the minimum wage and other benefits, from that of “employees” in the strict sense, who have a formal contract of employment.

From now on, Uber drivers in the UK will earn at least minimum wage, be entitled to paid time off, and be able to contribute to a pension scheme to which the company will contribute.

The UK minimum wage is 8.72 pounds ($ 12.12) an hour and is expected to rise to £ 8.91 in April. An Uber driver earns on average more than that, £ 17 in London and £ 14 in the rest of the country.

The company declares that all of its drivers want to be able to benefit from these advantages, while maintaining the flexibility of their working conditions.

These advantages are in addition to existing ones, such as free access to health insurance and compensation for parental leave.

“This is an important day for UK pilots,” said Jamie Heywood, Uber manager for Northern and Eastern Europe.

“Uber is only part of the car reservation industry and we hope other operators will join us in improving the working conditions of these workers who are essential to our daily lives,” he added. .

Uber did not specify the cost of these measures. But this, which must be very considerable, will weigh a little more on the fragile finances of a company that is not yet profitable and is going through a difficult time due to the restrictions against the pandemic.

The group will have to absorb part of the cost, because it can hardly afford a massive increase in its prices, especially in London, where competition is fierce.

But by granting drivers employee status, the company is avoiding lengthy UK court proceedings, as the Supreme Court ruling could have allowed drivers to go to court for the rights Uber just granted them. .

For the time being, the group is only taking this step in the United Kingdom and will study market by market how it can change its model.

Your CEO, Dara khosrowshahi, presented in February a series of proposals to governments and European unions with the aim of guaranteeing transparent and fair remuneration for drivers.

The ideal for Uber would be to be able to reproduce in Europe what it offers in California, that is to say independent drivers but receiving compensation.

It remains to be seen now whether the announcement of Uber could have consequences on other digital platforms in the United Kingdom, symbols of the economy of the “gig”, that is to say, precarious and poorly paid jobs.

The couriers of Deliveroo await the decision of the Court of Appeal of London to know if they can benefit from a collective agreement to have better working conditions.

With information from AFP

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