Uber Lobbying EU to Lower Standards for Gig Workers - Fairwork

Uber's Influence on Gig Economy Working Conditions Under Scrutiny

Ride-hailing company Uber has faced criticism regarding its perceived attempts to minimize its role in shaping working conditions within the gig economy.

This follows the publication of a white paper earlier this week, where Uber advocated for a deregulation of European labor laws modeled after the ‘Prop 22’ framework.

Fairwork's Response and Concerns

Fairwork, a research project dedicated to evaluating the fairness of gig platforms, has voiced concerns that Uber’s proposal for specialized rules for the gig economy represents an effort to “legitimize a lower level of protection for platform workers than most European workers currently benefit from.”

The research group asserts that while Uber acknowledges the necessity for improved conditions, it attributes this improvement to regulatory changes.

However, Fairwork contends that addressing driver dissatisfaction and enhancing conditions is within Uber’s existing capacity, operating under current legal structures.

Downplaying Influence and Shifting Responsibility

Uber’s emphasis on policy alterations, according to Fairwork, diminishes the company’s substantial influence over conditions within the gig economy.

By advocating for new regulations, the company appears to be transferring responsibility for worker welfare to external entities, rather than proactively establishing a standard for equitable platform worker treatment.

Fairwork urges Uber to uphold its stated commitment to change, recognizing the company’s pioneering role in the gig economy and its potential to enact immediate improvements for its workforce under existing legal frameworks.

Past Performance and Prop 22 in Europe

Fairwork highlights that Uber has consistently failed to meet its independent benchmarks for ‘fair’ platform work.

Currently, Uber is actively pursuing a ‘Prop 22’-style outcome in Europe, building on its success in California last year.

In California, Uber persuaded voters to exempt delivery and transport platform workers from traditional employment classification laws.

This push coincides with regional lawmakers’ efforts to enhance the circumstances of gig workers.

A Call for Maintaining European Standards

In its white paper addressed to EU lawmakers, Uber argues that improvements in conditions for gig workers are contingent upon regulators granting platforms exemptions from existing labor laws.

The company is lobbying for what it terms a “new standard” for gig work.

However, Fairwork argues this is a deliberate attempt to weaken established European employment standards, mirroring the strategy Uber successfully employed to reshape Californian legislation.

Legal Challenges and Upcoming Verdicts

It’s important to note that the European context differs significantly from California.

Courts across Europe have begun to invalidate self-serving classifications of gig workers as ‘self-employed’, with several of these challenges resulting in rulings against Uber in recent years.

A crucial verdict is anticipated on Friday, as the UK Supreme Court is expected to deliver its final judgment on an employment tribunal case that Uber has been contesting since 2016.

Replicating the California Strategy

Fairwork points out that the white paper mirrors Uber’s strategy in California, where, following the introduction of regulations that would have extended employee benefits to platform workers, the company and other platforms successfully advocated for a diluted alternative.

These platforms reportedly spent approximately $200M to persuade California voters to support their ballot measure, which exempted delivery and transport platform workers from classification laws in exchange for reduced workplace benefits.

Timing and Upcoming Regulations

Fairwork observes that Uber is extending this strategy to Europe shortly before two key events: a UK Supreme Court ruling on February 19th and the European Commission’s consultation with workers and employer representatives on February 24th regarding gig economy regulation.

The group urges regional lawmakers to focus on strengthening and expanding existing labor protections, rather than adopting Uber’s proposals to lower European standards.

The Need for Decent Work

“All workers, regardless of how their work is arranged, deserve decent wages and safe working conditions,” Fairwork emphasizes.

“Labor law provides these basic rights, and work arranged via a platform does not require a radical new approach.”

The benefits proposed in Uber’s white paper, like those under Proposition 22, represent weakened versions of those afforded to employees.

Fairwork concludes that strengthening and expanding existing labor protections is crucial for improving conditions, rather than creating exclusions that leave millions vulnerable.

Uber's Response

Uber stated that it welcomes all perspectives on this important topic and believes collaboration is essential to delivering a better deal for platform workers in Europe.

The company clarified that it is not seeking to directly replicate Prop 22 in Europe but believes some of the same principles could be applied as lawmakers explore ways to improve conditions for gig workers.

Uber reiterated its view that a level playing field is essential for delivering standardized improvements.

European Commission's Intentions

The European Commission is currently considering regulatory intervention regarding gig work and has signaled an intention to act in this area.

The COVID-19 pandemic, which highlighted the risks faced by gig workers lacking employment protections like sick pay, has likely accelerated this process.

In a 2019 mission letter, the EU president instructed the incoming jobs commissioner to explore ways to improve the situation for platform workers, stating that “Dignified, transparent and predictable working conditions are essential to our economic model.”