UBER ACCEPTS DRIVERS AS ‘WORKERS’: New package for over 70,000 UK drivers revealed

Ride-hailing firm Uber will introduce new workers’ rights to over 70,000 private hire drivers starting tomorrow.

From Wednesday thousands of drivers in the UK will be treated as workers, earning at least the National Living Wage when driving with Uber.

Private hire drivers working on the platform will also be paid for holiday time and be automatically enrolled into a pension plan if they are eligible.

The news follows a landmark Supreme Court ruling last month which handed victory to Uber drivers in their battle for worker rights.

Uber says the package offered to drivers is based around a consultation they conducted over the last few weeks, which found drivers wanted additional benefits but without any loss of flexibility.

As of tomorrow drivers with Uber in the UK will receive:

• At least the minimum wage after accepting a trip request and after expenses. This is a floor and not a ceiling, with drivers able to earn more. On average, drivers earn £17 per hour in London and £14 in the rest of the UK on the same basis when driving on Uber.

• All drivers will be paid holiday time based on 12.07% of their earnings, paid out on a fortnightly basis.

• Drivers will automatically be enrolled into a pension plan with contributions from Uber alongside driver contributions, setting drivers up over the long term.

• Free insurance in case of sickness or injury as well as parental payments, which have been in place for all drivers since 2018.

• Support from Uber’s Clean Air Plan in London, which has so far raised over £120m for drivers switching to an electric vehicle.

• All drivers will retain the freedom to choose if, when and where they drive.

All drivers will receive fortnightly financial payments which will cover holiday time and any necessary earnings top ups.

Jamie Heywood, Uber’s Regional General Manager for Northern and Eastern Europe, said: “This is an important day for drivers in the UK. Uber drivers will receive an earnings guarantee, holiday pay and a pension, and will retain the flexibility they currently value. Uber is just one part of a larger private-hire industry, so we hope that all other operators will join us in improving the quality of work for these important workers who are an essential part of our everyday lives.”

The news of Uber’s workers’ benefits was welcomed by the App Drivers & Couriers Union (ADCU) as ‘progress’, but they raised questions as to why drivers were only offered pay and benefits for the time they had an accepted job.

In a joint statement, James Farrar and Yaseen Aslam of ADCU, said: “While we welcome Uber’s decision to finally commit to paying minimum wage, holiday pay and pensions we observe that they have arrived to the table with this offer a day late and a dollar short, literally. The Supreme Court ruled that drivers are to be recognized as workers with entitlements to the minimum wage and holiday pay to accrue on working time from log on to log off whereas Uber is committing only to these entitlements to accrue from time of trip acceptance to drop off. This means that Uber drivers will be still short-changed to the tune of 40-50%. Also, it is not acceptable for Uber to unilaterally decide the driver expense base in calculating minimum wage. This must be subject to collective agreement.

“While Uber undoubtedly has made progress here, we cannot accept anything less than full compliance with legal minimums. We would also expect to see Uber make progress towards trade union recognition, a fair dismissals appeals process and a data access agreement.”

Mick Rix, GMB National Officer, said: “Uber had to be dragged kicking and screaming to do the right thing, but finally they’ve agreed to follow the ruling of the courts and treat their drivers as workers.

“It’s a shame it took GMB winning four court battles to make them see sense, but we got there in the end and ultimately that’s a big win for our members.

“GMB has consistently said we are willing to speak face to face to Uber about its treatment of drivers - our door remains open.

“Other gig economy companies should take note - this is the end of the road for bogus self employment.”