Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.
Philip Pacheco | AFP via Getty Images
LONDON – Uber called on the European Union to introduce a framework for workers in the concerted economy, proposing a model similar to that adopted by California after a disputed struggle over the employment situation of its drivers.
The American giant shared a “white paper” with EU competition chief Margrethe Vestager, Labor Commissioner Nicolas Schmit and other officials. He urged policymakers to implement reforms that would protect drivers and messengers operating through an app, without reclassifying them as employees.
It’s a thorny issue for Uber and other companies in the so-called concert economy that encourage temporary, flexible work models in favor of full-time employment. Last year, Uber, Lyft and other companies successfully fought proposals in California that would have given their drivers employee status instead of independent contractors.
California voters passed Proposition 22, a measure that would allow drivers of application-based transportation and delivery companies to be classified as independent contractors, while still entitling them to new benefits such as minimum earnings and vehicle insurance. .
“We call on policy makers, other platforms and social representatives to move quickly to build a framework for flexible earning opportunities, with industry-wide standards that all platform companies must provide to the self-employed,” he said. Dara Khosrowshahi, CEO of Uber. Monday.
“This could include the introduction of new laws like the recently enacted legislation in California,” he added.
Uber said the EU could set new principles through a “European model of social dialogue” between platform workers, policymakers and industry representatives.
“Third way”
Uber has warned that by treating its drivers as employees, the authorities would give the company no choice but to increase costs and that those costs would be passed on to customers.
Uber envisions a “third way” for the state of employment of the concerted economy that offers drivers some protection while allowing them to make contract work more flexible. In the United States, the firm suggested fund benefits that workers can use for health insurance and free rest.
The company’s European White Paper calls for new rules that encompass an “industry-wide playing field” and establish a “consistent profit baseline” for workers on different platforms.
The measure is ahead of the European Commission’s review on February 24, which aims to lay the groundwork for the regulation of concert economy platforms.
It also comes at a time when food delivery is booming, while coronavirus blockages in Europe have severely affected taxi services. Companies like Uber and Deliveroo faced criticism for failing to provide drivers with a safety net during the pandemic.
Meanwhile, drivers are making demands on Uber’s business practices across Europe. In the UK, the Supreme Court will rule on whether Uber drivers should be classified as workers entitled to protections such as a minimum wage and holiday pay. Elsewhere, Uber drivers in the Netherlands are demanding that the company reveal how its algorithms manage their work.
It’s not the first time Uber has faced control in Europe. In 2017, the European Court of Justice brought a major setback to Uber by considering it to be a transportation company rather than a digital company, paving the way for stricter regulation of the firm. And London twice banned the app from operating in the UK capital for security reasons. Uber received a temporary license from London in September.