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AVetsch5y ago
The United Kingdom's Supreme Court ruled that Uber, a company that pays people to drive other people, must classify the drivers it employs as drivers.
Initially, Uber drivers are not classified as employees; they are gig workers. This enables Uber to not be held responsible for their drivers' health. So, if a driver accidentally caught the coronavirus, that driver would not be able to apply for health insurance. Furthermore, Uber drivers are held solely responsible for what happens with their own vehicles, and pay for any damages accrued themselves.
This business practice has generated controversy with Uber. California recently held an election in 2020 to see if companies like Uber should classify its drivers as employers instead of gig workers. Uber lobbied intensely against for voters to vote no, and emphasized to its users passage of the vote would ruin the company. In the end, voters sided with Uber.
But a Supreme Court in the UK ruled Uber must classify its gig workers as employers. Uber complied, and will have to pay workers minimum wage, holiday pay, and health benefits.
The ruling could only be bad for workers in the gig economy, since the ruling would insinuate other gig companies treat their workers as employees. Despite Uber's win in California, they reported a net loss of US$6.8 billion due to low demand for drivers to go anywhere while under lockdown.
As a result of this ruling, Uber drivers will start receiving the country's minimum wage, which is currently 8.91 pounds or about $12.40, from the time they accept a ride to when they drop the rider off. Drivers will also be able to earn more if a fare is higher than the minimum wage.
Unfortunately, what remains open to interpretation is payment when Uber drivers await riders. This can get particularly complicated if the number of drivers surpasses the demand of riders. But as long as drivers are waiting for riders, they are active in their job and should therefore be considered "working".
Despite Califronia's loss to Uber this past election, this ruling could hopefully set a precedent for other European countries to rule in favor of labor activists for Uber to consider their drivers as employees.
Uber drivers have no reason to be considered as gig workers given the amount of time is required to earn a sizeable profit. Drivers have to have miles upon miles, ostensibly adding wear and tear on their vehicles they alone are responsible for maintaining. They also deserve to be compensated by Uber should they inadvertently contract a virus a rider carried, or for any other trouble. If Uber is a company large enough to reach nearly any corner of the world, it has every reason to pay the workers that help make it an engaging business.
CITATION
Russon, Mary-Ann. “Uber Drivers Are Workers Not Self-Employed, Supreme Court Rules.” BBC News, 19 Feb. 2021, www.bbc.com/news/business-56123668.
Satariano, Adam. “In a First, Uber Agrees to Classify British Drivers as ‘Workers.’” The New York Times, 17 Mar. 2021, www.nytimes.com/2021/03/16/technology/uber-uk-drivers-worker-status.html.
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