Uber to allow drivers to join union in historic deal

Uber (NYSE:UBER) confirmed on Thursday that it will officially recognise a trade union in a landmark deal that could benefit gig economy employees.

The GMB union has been given the power to represent UK drivers in discussions on a number of issues, including earnings and wellbeing.

Mick Rix, national officer at GMB, commented on the ruling:

Rix said it could be “the first step to a fairer working life for millions of people”.

“When tech private hire companies and unions work together like this, everyone benefits – bringing dignified, secure employment back to the world of work.

“We now call on all other operators to follow suit.”

The deal arrived three months after a Supreme Court ruling stated that Uber should not be allowed to classify its drivers as independent contractors, who would forego employee rights.

Subsequently, Uber confirmed in March that it would consider its UK drivers as “workers”. This would entitle them to a minimum wage, enrolment into a pension plan and holiday pay.

GMB and Uber will now gather once every three months to talk about driver related issues.

Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, acknowledged the company’s increasing reliance on unions.

“Whilst Uber and GMB may not seem like obvious allies, we’ve always agreed that drivers must come first, and today we have struck this important deal to improve workers’ protections,” Mr Heywood said.

“This historic agreement means that Uber will be the first in the industry to ensure that its drivers also have full union representation.”

Earlier this month, Arrival, the British electric vehicle manufacturer, recently listed on the New York Stock Exchange, entered a partnership with Uber to develop electric taxis.

The deal will involve Uber drivers having an input into the design of the cars which are scheduled to move into production next year. 

It is part of a wider plan by Uber to transition its 45,000 London-based drivers to electric vehicles by 2025, while the remainder of UK drivers will do the same by 2030.

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