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Home Business and Finance

Ride Sharing App Uber Agrees To Recognize A Trade Union For The First Time Ever

by Shaheer Ansari
May 27, 2021
in Business and Finance
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The GMB will have the power to represent UK drivers in wage negotiations, pensions, benefits and their health and well-being.

Mick Rix, a national executive at GMB, said it would be “the first step in finding a better working life for millions of people”.

Uber said the move demonstrated their commitment to its 70,000 UK drivers.

Drivers Must Come First

“While Uber and GMB may not be seen as a clear partnership, we have always agreed that drivers must come first, and today we have signed this important agreement to improve employee protection,” said Jamie Heywood, general manager for North and Eastern Europe. .

For years Uber has rejected calls to get comfortable with accepting unions, which have brought criticism to the company for not giving drivers basic rights such as sick pay or low wages.

The Background

Uber had argued that its drivers were self-employed and were not entitled to these benefits.

But in March it changed its stance after the Supreme Court ruled that its drivers should be classified as employees – a category that gives them the right to better pay and conditions.

It now provides them with a National Guarantee of Wages, Salary and Pensions.

And by giving recognition to the GMB, the giant company has taken the next step, giving the union the right to negotiate on behalf of drivers for the first time.

How Is It Structured?

The two sides will meet quarterly to discuss problems with drivers while Uber has agreed on GMB access rights for driving representatives.

Under the agreement, GMB and Uber will discuss topics such as Uber’s National Living Wage guarantee, pension and vacation pay.

Drivers will not automatically become members, and in order to be represented by a union, they will have to register.

The GMB Union

GMB has urged other operators to follow suit, saying the agreement provides an excellent opportunity to promote workers’ rights.

“This agreement shows that gig economy companies do not have to be Wild West on the unregulated border of employment rights,” Mr Rix said.

TUC general secretary Frances O’Grady said the deal would give Uber drivers a “real voice at work”.

But the organization that filed the Supreme Court case against Uber, the App Drivers & Couriers Union (ADCU), said there was “good reason for workers and their unions to be vigilant”.

It said Uber had not offered a minimum wage for all UK work and holidays, “although the UK High Court’s decision was in favor of it”.

“At this stage ADCU is not yet ready to enter into an acceptance agreement with Uber,” he added.

Tags: gig economyuber
Shaheer Ansari

Shaheer Ansari

Shaheer is a Business, Finance, DeFi, and Entertainment journalist. He enjoys keeping up to date with industry happenings and gossips, thereby enabling him to report well-researched and latest stories to our readers.

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