UBER GOES TO COURT TO DEFEND BUSINESS MODEL OVER UK WORKER RIGHTS

Business

Uber went to court to defend its business model of treating drivers as self-employed, entitling them to few rights in law, in the latest stage of a long-running battle at the taxi app.

The company, valued at $120 billion in a forthcoming flotation, has faced legal action, protests, regulator crackdowns and license losses around the world as it challenges existing competitors and rapidly expands.

In 2016, two British drivers successfully argued at a tribunal that Uber had significant control over them to provide an on-demand taxi service and that they should be given workers’ rights, which include receiving the minimum wage.

An employment appeal tribunal upheld that decision last year and this prompted Uber to go to the Court of Appeal. The two-day hearing is due to begin on Tuesday.

Unions have argued that the economy – where people often work for various employers at the same time without fixed contracts – is exploitative. Additionally, Uber says its drivers enjoy the terms of their work and on average earn much more than the minimum wage.

“We will do everything that we can to preserve that flexibility and preserve that power for our driver partners because every single one that I’ve talked to says that they absolutely treasure it,” CEO Dara Khosrowshahi said last week in London.

Those in the informal sector of employment in Britain are entitled to only basic protections such as health and safety but workers receive benefits such as the minimum wage, paid holidays and rest breaks. Uber has introduced a number of benefits for drivers.

Co-claimant in the case and chair of the drivers’ branch of The Independent Workers Union of Great Britain James Farrar criticized the taxi app for continuing to oppose the original tribunal decision.

“It’s two years since we beat Uber at the Employment Tribunal, yet minicab drivers all over the UK are still waiting for justice, while Uber exhausts endless appeals,” he said.

Rights at firms such as Uber, fellow taxi service Addison Lee and food courier Deliveroo have risen up the political agenda in Britain as more people work for companies without fixed hours or a guaranteed income.

A march supported by several trade unions and involving cleaners, receptionists and security officers is expected to take place on Tuesday.

A review into working practices has been launched by Prime Minister Theresa May. The government is yet to comment on the matter at hand.

 

-EWN

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