Uber under pressure on UK minimum wage in test of gig economy
Last updated on: 17 March,2021 06:24 pm
Uber under pressure on UK minimum wage in test of gig economy
LONDON (Reuters) - Uber drivers in Britain should receive the minimum wage the whole time they are logged onto the app, two former drivers said on Wednesday after winning a court battle which could reshape the gig economy.
Following a UK Supreme Court defeat last month, the Silicon Valley-based company reclassified its more than 70,000 drivers in Britain as workers, meaning they are guaranteed entitlements such as holiday pay.
Uber said drivers will be at least 15% better off, if they opt into the pension plan.
On the minimum wage, which stands at 8.72 pounds ($12.13) per hour for those aged 25 and over, Uber said it would apply “after accepting a trip request and after expenses” and that on average drivers earn an hourly 17 pounds in London.
Drivers will not receive it while waiting for a passenger request, which can account for as much as a third of the time drivers are behind the wheel with the app turned on, according to several U.S. studies.
James Farrar and Yaseen Aslam, the two lead drivers in a 2016 employment tribunal case that Uber unsuccessfully contested all the way to Britain’s top court, criticised the move.
“Uber drivers will be still short-changed to the tune of 40-50%,” they said.
“Also, it is not acceptable for Uber to unilaterally decide the driver expense base in calculating minimum wage.”
Uber said it has consulted with thousands of drivers who do not want to lose the flexibility they enjoy of “if, when and where they drive.”
Workers are entitled to fewer rights than those classed as employees, who also receive sick pay and parental leave. Uber in California pushed and won a similar compromise on drivers’ status.