Daily Mirror (Northern Ireland)
End of the road for gig economy?
How Uber ruling could affect millions of workers
Q What has Uber announced?
A
Its drivers in the UK will be guaranteed things such as being paid (at the least) the national minimum wage.
This is currently £8.72 an hour for over 25s, rising to £8.91
£8.72
in April. The drivers will also receive around 12% of what they earn as holiday pay every fortnight, whether they take time off or not.
And those eligible will be auto-enrolled into a pension scheme, with the drivers and Uber making contributions.
Q What does it mean in practice for workers?
AIn some ways the minimum wage pledge is a smokescreen because Uber says its drivers already earn an average of £14 an hour and £17 an hour in London.
Plus, even if drivers do just one job in an hour they are likely to get more than £8.72 as their cut of the fare. But the holiday pay is a genuine boost because it is extra money – as is the pension contribution from
Uber.
Q Why isn’t everyone happy?
A
There are a few issues. One is about when drivers are entitled to be paid.
Uber says the minimum wage guarantee applies “after accepting a trip request” and after expenses. That covers the time after a driver has agreed to take a job, through to picking up and dropping off the passenger.
Unions argue drivers should be paid from when they log into the Uber app until they log off.
Nigel Mackay, from law firm Leigh Day, which helped secure the Supreme Court victory, insists Uber’s decision is contrary to that ruling. He said: “The judgment is clear that when drivers are logged on and willing and able to work, they are workers at that point.”
Uber said: “If drivers were entitled to the minimum wage for all the time they simply had the app open, this would mean set shifts and a drastic cut to the number of drivers who can earn with Uber at a time when the UK needs more earnings opportunities, not less.”
Some won’t get the pension perk. Kate Smith, at financial firm Aegon, said: “An Uber driver would need to be paid for at least 22 hours a week to earn the £10,000 a year threshold for being auto-enrolled.”
BOSSES of cab-hailing app Uber have performed a huge U-turn by handing 70,000 of its drivers in the UK certain guarantees.
But it only came after the US business last month lost the final stage of a five-year legal battle with drivers who claimed their employment status had been wrongly classified.
So what exactly does it mean for Uber drivers?
And what are the implications for the roughly 4.7 million other gig economy workers in this country? Here we answer those questions…
Q Does it have implications for gig economy workers?
A
This is an extremely important question that is being hotly debated.
Alex Marshall, president of the IWGB union, said: “This will send shockwaves across the gig economy and sets a precedent to end the exploitative practices synonymous with the likes of Deliveroo and Addison Lee.”
Law firm Leigh Day believes last month’s Supreme Court ruling has implications for other people classed as independent contractors, and who are not entitled to basic rights usually given to workers such as holiday pay and the national minimum wage. It is currently representing drivers for Addison Lee.
However, Leigh Day’s Nigel Mackay said it will come down to looking at businesses on a case-by-case basis, meaning the situation for millions of gig workers won’t change overnight.
But it could prompt more claims against companies.
What could happen is that Uber’s decision to give drivers holiday pay and pension entitlements will be adopted by other firms voluntarily.
Before the pandemic struck, it was estimated that Britain had almost five million workers in the gig economy. Instead of having a regular wage, the workers are paid for “gigs” such as a food delivery or a car journey.
Deliveroo and Addison Lee were contacted for a comment.
Q Does it have implications for gig economy workers in other countries?
A
Uber says the central issue of “worker” status is unique to UK employment law. That suggests bosses do not think it applies to their worldwide army of drivers.
minimum hourly wage now guaranteed for Uber drivers
Q Will it become more expensive to use Uber cars?
A
Sources at the company accept the minimum wage pledge won’t actually cost them because drivers earn more than that already, according to bosses.
They will take a hit from the pension commitment and holiday pay, but insiders say the company will “absorb” those extra costs.
However, analysts have pointed to California where prices rose after a similar ruling.
TWO women have been arrested on suspicion of attempted murder after an early morning disturbance in which a number of people were stabbed yesterday
A man was also arrested after the North Belfast attack. Unconfirmed reports suggested those involved were not from the area.
Police received a report just after 2am to say that a woman had been stabbed and a man had been assaulted.
When officers arrived they found four women reporting injuries sustained as a result of being stabbed.
A man aged in his 20s also sustained a minor injury to his hand.
Two of the women, one aged in her 20s and the other in her teens, were taken to hospital for treatment. The other two women were treated at the scene.
Police said two women, aged 26 and 27, were subsequently arrested on suspicion of several offences, including attempted murder and wounding with intent to do grievous bodily harm.
A man, 20, was also arrested on suspicion of possession of an offensive weapon in a public place and attempted grievous bodily harm with intent.
They all remained in custody yesterday.
There was a significant police presence in the area after the incident. Detective Sergeant O’flaherty said: “Our enquiries into this incident, which we are treating as attempted murder, are continuing and we are working to establish exactly what happened.”
The officer urged anyone in the area at the time or who has information about the incident to come forward.
Sinn Fein councillor JJ Magee said people in the area “have been shocked by this incident”.
He added: “I have spoken to the PSNI and I would appeal for anyone with information on what happened to bring it forward to the PSNI.”
People have been shocked by the incident JJ MAGEE LOCAL SINN FEIN COUNCILLOR