Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.
Philip Pacheco | AFP through Getty Images
LONDON – Uber has called on the European Union to introduce a framework for workers in the giant’s economy, floating a model similar to that adopted by California after a controversial fight over the employment status of its drivers.
The US giant shared a “white paper” with EU competition chief Margrethe Vestager, employment commissioner Nicolas Schmit and other officials. It urged decision-makers to implement reforms to protect drivers and couriers operating through an application, without reclassifying them as employees.
It’s a thorny issue for Uber and other companies in the so-called gig economy that encourage temporary and flexible work patterns in favor of full-time employment. Last year, Uber, Lyft and other companies successfully fought proposals in California that would have given their drivers the status of employees, rather than independent contractors.
California voters approved Proposition 22, a measure that would allow drivers for app-based transportation and delivery companies to be classified as independent contractors, while still giving them new benefits, such as minimum earnings and vehicle insurance.
“We call on policy makers, other platforms and social representatives to move quickly to build a framework for flexible earning opportunities, with industry-wide standards that all platform companies must provide to the self-employed,” said the CEO. Uber Dara Khosrowshahi in a blog post Monday.
“This could include the introduction of new laws, such as recently passed legislation in California,” he added.
Uber said the EU could alternatively establish new principles through a “European model of social dialogue” between platform employees, policy makers and industry representatives.
“The third way”
Uber has warned that by treating its drivers as employees, the authorities would offer the company no choice but to increase costs – and that these costs will be passed on to customers.
Uber intends a “third way” for economic employment status, which offers drivers certain protections, while allowing them the flexibility of contract work. In the US, the company suggested benefits for funds that can be used by workers for things like health and leisure insurance.
The company’s European White Paper calls for new rules to include “industry-wide level playing field” and sets out a “consistent revenue baseline” for workers on different platforms.
The move comes ahead of a review by the European Commission on February 24, which aims to lay the groundwork for regulating concert economy platforms.
It also comes at a time when food delivery is booming, while taxi transport services have been severely affected by coronavirus blockage in Europe. Companies such as Uber and Deliveroo have faced criticism for not providing drivers with a safety net during the pandemic.
Meanwhile, drivers are demanding their own Uber practices in Europe. In the UK, the Supreme Court will rule on the fact that Uber drivers should be classified as workers entitled to protections, such as the minimum wage and holiday pay. Elsewhere, Uber drivers in the Netherlands are asking the company to reveal how its algorithms manage their business.
This is not the first time Uber has faced control in Europe. In 2017, the European Court of Justice faced a major hurdle for Uber, ruling that it was a transport company rather than a digital company, paving the way for stricter regulation of the company. And London has twice banned the app from operating in the UK capital for security reasons. Uber received a temporary license in London in September.