Uber said Tuesday that drivers in the UK who use its ride-healing app would treated as workers, a title that gives them some benefits, such as holiday pay.
However, even though Uber apparently accepted a Supreme Court ruling, instead of drivers logging into the app, they decided to calculate working hours from the start of the trip, which could already start a new fight. Uber says from Wednesday all drivers in the UK will give 12.07% of their earnings based on vacation time, which will paid every two weeks. Drivers will pay a minimum wage (called the national life wage) after receiving travel requests and after spending, Uber said in a statement.
Eligible drivers in the UK will automatically enrolled in the pension plan with Uber contributions. These contributions will represent about 3% of the driver’s earnings. In the UK, there are three surnames: self-employed, employed and employee. The title “worker” does not make them employees, but it still entitles them to a minimum wage, holiday pay, and a pension if eligible.
Uber said on Tuesday that based on current expectations, the company is not changing its previously announced expectations for the first quarter or for the adjusted EBITDA for 2021. Uber has been fighting for workers’ classification since 2016. Last month, the UK Supreme Court rejected Uber’s appeal, revoking an earlier ruling that the drivers using the application were not workers, independent contractors.
With no place to turn, Uber admits – sorted. Uber will only guarantee those drivers’ working hours and other benefits will earned once they have taken a trip, not based on starting work when they sign in to the application. In the meantime, the workers are fogging. According to a statement from the app’s operators, “We finally welcome Uber’s decision to promise a minimum wage, holiday pay and pension. Signed, these two drivers sued Uber.
“The Supreme Court has ruled that drivers must be entitled to a minimum wage and leave pay as an employee when logging off, but that Uber will only be liable for this right from the time the trip is accepted.” Uber drivers will still short-changed with 40-50%. In addition, it is not acceptable for Uber to make unilateral decisions based on driver costs when calculating the minimum wage. This is of course subject to a joint agreement. While Uber has undoubtedly made progress here, we cannot accept anything less than full compliance with the legal minimum.
We would also expect to see progress towards Uber trade union recognition, a fair dismissal appeal process and a data access agreement.