In a major victory for unions, Uber s more than 70,000 British drivers will be paid the minimum wage while picking up and driving passengers as part of the ride-hailing company s agreement to grant workers rights after it lost a groundbreaking Supreme Court case last month.
Uber Technologies Inc has pushed back against European and U.S. labor advocates demands for better driver compensation with some success, calling for a third way of combining flexible on-demand work with more limited benefits than traditional employees receive. The agreement in Britain classifies Uber drivers as workers who are entitled to fewer rights than those classed as employees, who are also guaranteed sick pay and parental leave. Uber in California last year pushed and won a similar compromise on drivers status.
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Uber to Give UK Drivers Workers Rights After Court Defeat
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Uber said it is granting worker status to its UK drivers,
entitling them to the minimum wage, holiday pay and other benefits.
The UK will be the first country in the world where Uber will have this business model.
The firm didn’t specify how much the reclassification will cost, but said it doesn’t expect to change its earnings forecast for the quarter or the year.
Uber will reclassify all 70 000 of its UK drivers as workers, entitling them to the minimum wage, vacation pay and other benefits after a landmark ruling from the Supreme Court last month.
The ride-hailing app’s drivers will receive at least the national living wage of $12.11 (just over R250) per hour starting Wednesday. This will be the minimum drivers can earn, in what Uber described as an “earnings floor, not an earnings ceiling.”