LONDON (Reuters) – Uber drivers in the UK should receive the minimum wage for as long as they are connected to the app, two former drivers said on Wednesday after winning a legal battle that could reshape the giant’s economy.
Following a UK Supreme Court defeat last month, the Silicon Valley company reclassified its more than 70,000 drivers in the UK as workers, which means they are guaranteed rights, such as holiday pay.
Uber said drivers will have at least 15% better after the changes if they opt for the pension plan.
Regarding the minimum wage, which amounts to £ 8.72 ($ 12.13) per hour for those over the age of 25, Uber said it would apply “after accepting a travel application and after spending ”And that, on average, drivers earn £ 17 an hour in London.
Drivers will not receive it while waiting for a passenger request, which can be up to a third of the time when drivers are behind the wheel with the application turned on, according to several US studies.
James Farrar and Yaseen Aslam, the two main drivers in a 2016 employment court case that Uber unsuccessfully challenged in the British Supreme Court, criticized the move.
“Uber drivers will continue to be changed at 40-50%,” they said in a statement released by the App Drivers & Couriers Union.
“It’s also not acceptable for Uber to unilaterally decide the driver’s spending base in calculating the minimum wage.”
Uber said it has consulted with thousands of drivers over the past few weeks who do not want to lose the flexibility they enjoy, with the option to choose “if, when and where to drive.”
Workers are entitled to fewer rights than those classified as employees, who also receive sick pay and parental leave. Last year, Uber in California pushed and won a similar compromise on driver status.
GIG ECONOMY SHAK-UP?
Uber has faced opposition from traditional taxi operators and unions who have criticized the app for downsizing existing players, leading to protests and legal and regulatory challenges that have forced the company to withdraw from some markets.
In 2020, France’s higher court recognized an Uber driver’s right to be considered an employee, while European Union regulators are considering new rules to protect workers in the giant’s economy.
Many cases involving workplace rights have taken years to make their way through the courts because they can appeal.
The drivers in the British dispute worked for Uber “at any time when the driver was connected to the Uber application in the territory where the driver was authorized to operate and was prepared and willing to accept travel,” according to a summary of the Supreme Court press.
Farrar suggested that there may be more legal action in this regard.
Uber chief in Northern and Eastern Europe, Jamie Heywood, said their plan gave drivers what they wanted.
“If we decide that the time to connect to the application is also the working time, that would mean that we should introduce shifts that tell drivers when they can work, which most drivers do not want to do and would we also need to introduce terms of exclusivity, “he told Sky News.
He declined to say what the total cost would be for the company, but said he pledged to remain “absolutely competitive in terms of prices” and would communicate with drivers in the coming days about settlements for historic trips.
The Uber announcement could also put pressure on other companies operating in the giant economy, where millions of people tend to work for one or more companies, from one place to another.
Rival taxi service Addison Lee and food company Deliveroo, which is due to leave soon, have both filed lawsuits over workplace rights.
“The new phase of our economy should be about protecting workers’ rights, promoting higher standards, driving new technologies,” said British Business Minister Kwasi Kwarteng.
($ 1 = £ 0.7191)
Reporting by Costas Pitas; edited by James Davey, Louise Heavens and Toby Chopra