I thought Uber’s Gig workers and the UK Supreme Court ruling yesterday (19th Feb 2021) is an interesting development and read. .
Gig drivers right to be recognised as workers and contractors or partners was on the boil for some time.
It has been a long running saga on nailing down the status of those providing the service. I am certain this journey still has a long way to go.
It is arguably a paradigm shift. A landmark ruling. Not the ruling but the model which is relatively new and has quirks if you call it that. And it needs to be ironed out.
The other interesting development is where this landmark ruling occurred. The UK is not a surprise as Karl Marx wrote Das Kapital in London on workers’s rights.
The impact for the moment
The ruling for the moment has consequences and not just for drivers. We are looking at a significant part of the gig economy outside of the riding hailing industry.
The only ones in the gig economy not impacted are those who genuinely want to remain as independents contractors.
The independent operators are closer to entrepreneurs. The also have qualification and skills and their opportunity to set their own terms is higher.
This lot seeks or the enjoys the freedom to offer what they want as services and when they want to offer it. And the ability to walk away at the drop of a hat. And just as quickly to get back on.
They might have to work within a controlled framework but they are comfortable with it. The alternative is to join the traditional workforce and fully subscribe to the corporate framework. In a way to toe the line.
The Judgement
I read the Supreme Court judgement here and I am glad I did.
It details the operating model and found it comprehensive and clear and goes right down to the nth degree.
The Supreme Court did a much better job than any previous media article or academic paper in describing the model. Shame on academic and the media.
Another point of interest is the way the Uber agreement between Uber and car drivers is framed particularly the definitions of actors in this play.
You can see it was highly contrived with the sole intention of not recognising them as workers.
Uber considers the driver as a “customer” and the passenger a “user” and also at times “rider” in their legal agreement and terms.
Uber positions itself somewhat as a bystander (my choice of word). Gosh, even the legal largesse here is a reach and I am not sure if it is a smart move.
As you go thru the judgment, the Lords ignored these Uber definitions and stuck to “driver” and “passenger” in the conventional sense and quite sensibly.
In essence, the Court found that the drivers fell within the definition of a worker as defined by various laws of the UK.
Mainly in view of the levels of controls Uber had on the drivers.
It also found that the contract that Uber asked the drivers to sign was an attempt to avoid the appropriate classification and were therefore void. In simple terms, they defined the apple as an orange and hoping for the best. Cheeky!
What next at least for the model
The model is not just about drivers but an entire operating system within new sub ecosystem. That’s important to note.
The model and the system will likely remain intact.
The technology that the model sits on is central, far superior and appeals to all parties. The judgement also recognises the technology and brings out its value. I thought this was a plus in reading the judgement.
Passengers or riders appreciate the model due to convenience and relative safety.
Interestingly the drivers too I suspect appreciate the model also for the same reasons. Hence the popularity in attracting so many and so fast.
Just on safety alone for both the driver and the rider, all parties are identified compared to a taxi cab or the UK mini cab. And there is lot more assurance of work and standards which are much higher.
The compensation framework, the cost to Uber from this judgement will increase. Fares will be therefore be higher.
The sense of independence like choosing the hours and days and the operating gig style which are the main motivating attributes will likely remain despite the judgement .
Another step forward
Personally I thought it was a step forward for all including Uber. It laid to rest an uncertainty. They can now plan ahead with this cast in stone.
My guess is that the Uber’s Gig Workers and the UK Supreme Court battle is one of a series of battles expected across other countries before the model firms up at least in terms of remuneration and pricing.
I also don’t think many of us are keen to go back to taxi rides despite an expected fare hike. Unless we are have little choice.
We have tasted it and cannot give it up. Whether as the passenger, the diver or the companies that run ride hailing. It just too good.
Here is the link to an earlier post on the Gig economy in the main. And another on the technology of the gig economy.