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Source: Siwakorn1933, Shutterstock
Summary
- Uber Technologies reached out to Canada’s provincial governments on Wednesday to bring in regulatory changes that would allow it and other app-based companies to offer benefits to gig workers.
- Uber Canada proposed this new model of working as ‘Flexible Work+’ on Wednesday.
- Flexible Work+ proposal has received some flak from gig worker groups.
Uber Technologies Inc (NYSE:UBER, UBER:US) reached out to Canada’s provincial governments on Wednesday, March 10, to bring in regulatory changes that would allow it and other app-based companies to offer benefits to gig workers.
Gig workers comprise nontraditional employees who primarily work on contractual or referral basis with less or no perks that come with traditional employment, such as health insurance, holidays, safety protections, etc.
Uber Canada proposed this new model of working as ‘Flexible Work+’ on Wednesday.
The stocks of cab aggregation app rose over four per cent on Wednesday as this proposal came out. It has given a return of ~100 per cent in the last one year.
What Exactly Is Uber Proposing Under Flexible Work+?
Let us take a brief look at Uber Canada's proposition:
- Senior VP of Mobility at Uber, Andrew MacDonald described the present employment system as “outdated, unfair and somewhat inflexible” that does not fit and protect all employees.
- Under the current system, Uber drivers and couriers are classified as independent contractors and it is not mandatory to pay them minimum wage or benefits that are applicable under provincial laws for regular employees.
- Under Flexible Work+, Uber proposed that such gig workers would be provided necessary safety tools, such as reflection jackets, phone mounts, etc, and other training aids while maintaining their flexibility of work.
- The San Francisco-based tech giant said that app-based service providers should be required to create a separate fund for the gig workers’ benefits.
(Source: Pixabay)
What Do Gig Workers Think About Flexible Work+?
An survey conducted by Uber in October 2020 found that 85 per cent of 670 drivers and couriers in Canada felt that they would not be able to continue their duties if they were not offered flexibility in work.
The survey also found out that about 29 per cent of the participants preferred the independent contractor work model, while some 30 per cent of them found it somewhat or partial favorable.
On the other hand, about only 15 per cent strongly preferred the traditional employee model, while 20 per cent of the crowd showed partial preference.
When Uber conducted an internal study, 65 per cent of the participants were in favor of the Flexible Work+ model, while 16 per cent preferred remaining under the existing independent contractor model. About 18 per cent of the crowd reportedly expressed interest in being classified as employees with benefits.
Outside of Uber’s inner circle, however, the Flexible Work+ proposal has received some flak from gig worker groups. Some have noted that the proposal lets the company continue to avoid fair pay and leave its couriers and drivers in a state of precarity.
