Uber "70,000 UK Drivers Classified as Workers"... A Signal of Change in the Platform Industry

Following Last Month's UK Supreme Court Ruling
Tug of War Between Companies and Unions Also in the US

On the 19th of last month, right after the Supreme Court ruling recognizing the labor rights of Uber drivers in front of the Supreme Court in London, UK, Uber driver union members belonging to the platform drivers' union (ADCU) cheered. London, UK = Photo by AP

[Asia Economy Reporter Kim Suhwan] Global ride-sharing company Uber has announced that it will classify its drivers in the UK as workers. As Uber recognizes the worker status of its platform laborers for the first time, attention is focused on whether this will have an impact on the global platform industry.

According to foreign media including the UK Guardian on the 16th (local time), Uber announced that it will classify about 70,000 drivers in the UK as 'workers' under local labor law. This follows the UK Supreme Court ruling on the 19th of last month that recognized the worker status of Uber drivers. As a result, these drivers will be able to enjoy benefits guaranteed by law such as minimum wage, paid leave, and pensions.

Uber stated that it plans to apply the minimum wage based on the time drivers spend carrying passengers. Dara Khosrowshahi, Uber's CEO, wrote in an op-ed for the Evening Standard on the same day, calling it "a significant step forward in guaranteeing drivers' rights" and "a day that shows our commitment to change."

Previously, two former Uber drivers, including James Farrar, filed a lawsuit in 2016 requesting recognition of their worker status, winning in both the first trial and appeal courts. Last month, the UK Supreme Court also ruled in favor of these plaintiffs. The UK Supreme Court stated in its ruling that since Uber sets drivers' wages and contract terms and also monitors labor discipline, Uber drivers are considered employed workers. Uber had argued that its drivers should be regarded as self-employed individuals working under individual contracts and that their worker status should not be recognized.

However, since this measure does not recognize them as regular 'employees,' rights such as maternity leave and severance pay are not expected to be guaranteed. Under UK labor law, unlike other countries, workers are classified separately as 'employees' and 'workers,' with workers having fewer guaranteed rights than employees. It is interpreted that Uber converted UK drivers to workers because it judged that economic losses would not be significant even if it complied with the court ruling. Farrar, who filed the lawsuit, criticized, "Our rights are not fully guaranteed," adding, "There are still parts where Uber has not conceded."

With Uber taking this step to recognize drivers' worker rights for the first time, the possibility of influencing platform industries worldwide has increased. Bloomberg News analyzed, "Uber's action on this day will inevitably have an impact on platform workers worldwide," and "There is a growing possibility of fundamental changes in the employment models of platform companies."

Previously, in France, a former Uber driver filed a lawsuit requesting recognition of his worker status, and in March last year, the French Supreme Court ruled that the driver should be recognized as a worker.

The European Union (EU) is discussing measures to protect the rights of platform workers. On the 24th of last month, the EU began a review process to analyze the employment forms and working conditions of platform workers to determine whether they can be granted worker rights under labor law. Deutsche Welle reported, "The EU will primarily promote consultation processes between platform companies and labor unions," adding, "If no agreement is reached, the EU is expected to consider measures it can implement independently."

In the United States, a tug-of-war continues between the industry and labor unions over platform workers' rights. In 2019, California became the first state in the US to implement a law recognizing platform workers as employees, but in November, Uber and Lyft pushed for a referendum to exclude platform companies from state labor law coverage, which was passed.

In New York State, a federal judge ruled in July that Uber drivers should be paid unemployment benefits. Final rulings on the recognition of Uber drivers' worker status are also pending in Illinois and New Jersey.

This content was produced with the assistance of AI translation services.