Jon Weinberg is a student at Harvard Law School.
In a major ruling with widespread implications for gig economy workers in the United Kingdom, an employment tribunal in London found that Uber drivers are not self-employed independent contractors, but rather Uber workers. The Guardian reports that “the case could open up the technology firm to claims from all of its 40,000 drivers in the UK, and force other companies in the so-called gig economy to review the way that they are employing staff.” Drivers will now be entitled to the national living wage, as well as paid holidays and paid rest breaks. Uber is likely to appeal the ruling.
In the United States, Uber has again been sued by drivers in New York who accuse Uber of wage theft. Bloomberg BNA notes that the drivers originally filed a class action alleging violations of the Fair Labor Standards Act and New York Labor Law, but now four of the drivers “who haven’t opted out of arbitration agreements with Uber, will contend the National Labor Relations Act bars arbitration pacts containing class action waivers” as well as the same substantive FLSA and NY Labor Law violations. As a result, “the six drivers in the original lawsuit who opted out of arbitration can more quickly move for court consideration of their ‘wage theft’ claims.” The drivers contend that “Uber’s pay practices mean many drivers working more than eight hours a shift earn less than minimum wage and receive no overtime pay.”
Meanwhile, Uber is moving ahead with the formation of company-funded quasi-unions which will purport to represent drivers and yet promise not to strike. According to Josh Eidelson of Bloomberg Businessweek, the Uber-funded Independent Drivers Guild was launched in partnership with the International Association of Machinists and Aerospace Workers (IAM) and claims to represent all 40,000+ Uber divers in New York City in arbitration hearings challenging driver deactivation, and also offers “such perks as discounted legal assistance and chances to air grievances at monthly meetings with Uber officials.” However, the IDG wasn’t voted for by drivers and has no collective bargaining agreement, and some argue it represents an effort by Uber to resist true unionization.
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
October 30
Sectoral bargaining could blunt A.I. job loss; Gen-Z job searchers stare into the void.
October 29
Dolores Huerta, labor leader, feminist, and civil rights icon, dies at 96.
October 28
The Writers Guild of America East provides writers with access to software that protects their work from AI scraping, and city workers in Oregon reach a tentative agreement after a six-day strike.
October 27
Some California union locals defy their statewide leadership to back the state’s billionaire tax proposal; a Brown University technology center releases a map of the hidden global workforce behind AI; the National Women's Soccer League and its players union settle six grievances.
October 26
Harvard dining workers authorize strike; New York City bans horse carriages; Brooklyn nurses rally in support of colleague.
October 25
Dallas Cowboys Cheerleaders unionize; Bureau of Prisons again pushes for union contract cancellation; CSU faculty votes on strike authorization.