Uber Strikes First Union Deal for Ride-Hailing Drivers With UK's GMB
27 May 2021 - 6:26AM
Dow Jones News
By Adam Clark
Uber Technologies Inc. has agreed to formally recognize one of
the U.K.'s largest unions as representing its ride-hailing drivers,
in a global first for the company as it adapts to mounting legal
pressure over the employment status of its workers.
Uber said Wednesday that it had struck the collective-bargaining
agreement with the GMB union, offering representation to up to
70,000 drivers. The deal follows a U.K. Supreme Court decision in
February, which ruled that a group of former drivers were entitled
to a minimum wage and other employee-type benefits. Uber
subsequently said it would offer the same entitlements to all its
British ride-hailing drivers. The agreement won't change drivers'
right to choose when they want to work on the Uber app and they
will have the choice whether they wish to be represented by the
GMB. The move comes as Uber faces pressure from courts and
regulators in Europe and the U.S. over the employment status of its
gig workers. It has previously recognized collective-bargaining
rights for Italian couriers on its Eats food-delivery platform but
not for its ride-hailing drivers.
"Uber is the only major player in the industry to provide
drivers with a National Living Wage guarantee, holiday pay and a
pension, and this historic agreement means that Uber will be the
first in the industry to ensure that its drivers also have full
union representation," said Jamie Heywood, Uber's regional chief
for Northern and Eastern Europe.
A collective-bargaining agreement in the U.K. could set a
precedent for future negotiations with unions in the U.S. and also
in the European Union, where a consultation is ongoing on possible
legislation on the platform economy. Uber has previously said it
opposes EU-wide legislation on the status of drivers and couriers
but that it supports negotiations with platform workers,
policymakers and social representatives to set earning
principles.
Uber said it will work with GMB on wage guarantees, holiday pay
and pension enrolment. It also said GMB will have access rights to
its drivers and play a role in representing those who have had
their accounts deactivated.
Write to Adam Clark at adam.clark@wsj.com
(END) Dow Jones Newswires
May 26, 2021 16:14 ET (20:14 GMT)
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