Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on Sept. 26, 2019.
Philip Pacheco | AFP via Getty Images
LONDON – Uber called on the European Union to put in place a framework for gig economy workers, following a model similar to California’s after a controversial row over the employment status of its drivers.
The American giant shared a “white paper” with EU race director Margrethe Vestager, job commissioner Nicolas Schmit and other officials. It urged policymakers to implement reforms that protect drivers and couriers operating through an app, without reclassifying them as employees.
It’s a thorny issue for Uber and other companies in the so-called gig 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 the status of employees rather than independent contractors.
California voters approved Proposition 22, a measure that allows drivers of app-based transportation and delivery companies to be classified as independent contractors, while still entitling them to new benefits such as minimum income and auto insurance.
“We call on policymakers, other platforms and social representatives to act quickly to create a framework for flexible earning opportunities, with industry-wide standards that all platform companies must provide to independent workers,” Uber CEO Dara Khosrowshahi said in a blog post. Monday.
“This could include the introduction of new laws, such as the one recently passed in California,” he added.
Uber said the EU could alternatively establish 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 like 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” to employment status in the gig economy that offers drivers some protection while still offering them flexibility of contract work. In the US, the company proposed benefit funds that can be used by employees for things like health insurance and paid time off.
The company’s European White Paper calls for new rules that include a “level playing field for the entire industry” and establish a “consistent basis of income” for employees across platforms.
The move comes ahead of a review by the European Commission on Feb. 24, which aims to lay the groundwork for regulation of gig economy platforms.
It also comes at a time when food delivery is booming, while taxi services have been severely affected by the coronavirus blockage in Europe. Companies like Uber and Deliveroo faced criticism for failing to provide drivers with a safety net during the pandemic.
Meanwhile, drivers are making their own demands on Uber’s business practices across Europe. In the UK, the Supreme Court will rule on whether Uber drivers should be classified as employees entitled to protections such as minimum wages and vacation pay. Elsewhere, Uber drivers in the Netherlands are demanding that the company disclose how its algorithms manage their work.
It is not the first time that Uber has been scrutinized in Europe. In 2017, the European Court of Justice dealt with Uber a major setback by ruling that it was a transportation company rather than a digital company, paving the way for stricter regulations for the company. And London twice banned the app from operating in the UK capital due to security concerns. Uber got a temporary permit for London in September.