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Uber proposes California-style gig work reforms in Europe

Uber CEO Dara Khosrowshahi speaks at a product launch occasion in San Francisco, California on September 26, 2019.

Philip Pacheco | AFP by way of Getty Photos

LONDON — Uber known as on the European Union to introduce a framework for gig financial system employees, floating a mannequin just like that adopted by California after a contentious fight over the employment standing of its drivers.

The U.S. ride-hailing large shared a “white paper” with EU competitors chief Margrethe Vestager, jobs commissioner Nicolas Schmit and different officers. It urged policymakers to implement reforms that defend drivers and couriers working by means of an app, with out reclassifying them as workers.

It is a thorny situation for Uber and different corporations within the so-called gig financial system that encourage non permanent, versatile working fashions in favor of full-time employment. Final 12 months, Uber, Lyft and different companies efficiently fought towards proposals in California which might have given their drivers the standing of workers moderately than impartial contractors.

Californian voters approved Proposition 22, a measure that may enable drivers for app-based transportation and supply corporations to be labeled as impartial contractors whereas nonetheless entitling them to new advantages like minimal earnings and car insurance coverage.

“We’re calling on policymakers, different platforms and social representatives to maneuver shortly to construct a framework for versatile incomes alternatives, with industry-wide requirements that every one platform corporations should present for impartial employees,” Uber CEO Dara Khosrowshahi stated in a weblog submit Monday. 

“This might embrace introducing new legal guidelines such because the laws not too long ago enacted in California,” he added.

Uber stated the EU might alternatively set new rules by means of a “European mannequin of social dialogue” between platform employees, coverage makers and {industry} representatives.

‘Third means’

Uber has warned that, by treating its drivers as workers, authorities would give the agency no alternative however to extend prices — and that these prices can be handed all the way down to prospects.

Uber envisions a “third way” for gig financial system employment standing that provides drivers some protections whereas nonetheless permitting them flexibility of contract work. Within the U.S., the agency urged advantages funds that can be utilized by employees for issues like medical insurance and paid day without work.

The corporate’s European white paper calls for brand spanking new guidelines that embody an “industry-wide degree taking part in subject” and units a “constant earnings baseline” for employees throughout completely different platforms.

The transfer comes forward of a assessment from the European Fee on Feb. 24, which goals to put the groundwork for regulation of gig financial system platforms.

It additionally arrives at a time when meals supply is booming whereas taxi-hailing companies have been severely impacted by coronavirus lockdowns in Europe. Firms like Uber and Deliveroo faced criticism for failing to supply drivers with a security internet in the course of the pandemic.

In the meantime, drivers are making calls for of their very own on Uber’s enterprise practices throughout Europe. Within the U.Okay., the Supreme Courtroom is ready to ship a ruling on whether or not Uber’s drivers needs to be labeled as employees entitled to protections like a minimal wage and vacation pay. Elsewhere, Uber drivers within the Netherlands are demanding the corporate reveals how its algorithms handle their work.

It is not the primary time Uber has confronted scrutiny in Europe. In 2017, the European Courtroom of Justice dealt Uber a serious setback by ruling it was a transportation agency moderately than a digital firm, paving the best way for stricter regulation of the agency. And London twice banned the app from working within the U.Okay. capital over security issues. Uber was issued a temporary London license in September.

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