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Summary
- Uber has agreed to sign a deal with GBM making it the first ever deal between a gig economy service and a union.
- Sometimes back, the UK Supreme Court in a ruling stated that Uber drivers should be classed as ‘workers’ and not self-employed.
In the first landmark deal between a union and a gig economy service, the GBM union in UK has been recognised by Uber, giving an option to Uber drivers to sign up for collective bargaining. They won’t automatically become members of the union. GBM will get access to support the drivers, raise their issues and concerns including their health and wellbeing matters, and also represent them in case they lose access to the Uber app.
This deal has been signed 2 months after the landmark judgment by the UK Supreme Court, which gave a guarantee of minimum hourly wage to 70,000 UK drivers, with paid holidays and pension support.
Now, an issue possibly to be taken up by GBM is the new pay scheme of Uber in regards to the calculation of working time using the app, which doesn’t align with the recent Supreme Court guidelines.
UK Supreme Court ruling
Recently in February, 2021, the Supreme Court of UK gave a unanimous ruling that Uber drivers are to be considered as workers rather than self-employed contractors. This was officially recognised by Uber in March 2021. The decision has made the Uber drivers eligible for paid holidays, minimum wage and pensions, leading to far-reaching changes in the gig economy business. However, the decision is not applicable to Uber eats delivery riders.
Also Read: Uber's food delivery business ahead in the race; Ride services taking U-turn in revenues
The founding members of The App Drivers & Couriers Union (ADCU) took the case to the employment tribunal which led to this welcome decision by the Supreme Court. But even after a favouring decision, ADCU didn’t sign the recognition deal as it claimed that Uber still doesn’t provide basic employment rights to its drivers despite the Supreme Court ruling.
Impact on workers and gig economy
The latest landmark deal of Uber Technologies Inc (LON:0A1U) is a turning point that will ensure fairer working conditions with better pay for millions of people working as a part of the gig economy. It will help in securing the employment of workers and also maintaining their dignity. It will give a real voice to workers to stand up for their basic employment rights.
These decisions have made Uber the first major player in the industry to give protection to its workers by providing a national living wage, holiday pay, pension and a union representation.
In addition to this, the decision will have long term implications for gig economy firms in UK, resulting in higher costs and need for a revision of business models. The gig economy businesses are now more likely to be challenged by individuals, based on the working conditions and the treatment they receive.
