For the longest time, Uber drivers were classified as self-employed and independent contractors. But now, that reality is history—at least in the UK. Following a defeat in a 5-year-long legal battle, Uber will be granting 70,000 employees the status of workers. What does that mean? That means they are entitled to earn a minimum wage and pension plans, among other rights granted to employees in the country. Although workers are entitled to fewer rights than employees, this major shift still comes with significant changes to how these drivers are compensated. We dive in to think, should this be done in Egypt?
But before we do, here’s a brief overview of how it all happened…
Why the UK Decided Uber Drivers Are Workers?
Last February, a British Supreme Court decision dictated that Uber drivers should be regarded as workers with vacation and minimum wage rights. Uber stated that this ruling is the first of its kind.
Uber drivers of the App Drivers & Couriers Union, celebrate the court decision last month in the UK. Photo via The Daily Mail.
Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, said the company’s decision pressured other ride-hailing companies to adopt similar policies.
“ Uber is just one part of a larger private-hire industry, so we hope that all other operators will join us in improving the quality of work for these important workers who are an essential part of our everyday lives,” Jamie Heywood, regional general manager for Northern and Eastern Europe at Uber, told the BBC.
Advocating the need for this decision, Services Employees International Union (SEIU) president, Mary Kay Henry, stated that the accumulated and shocking statistics reveal that Uber could have—and probably should have—taken this decision a long time ago.
“This debunks nearly a decade of scare tactics from rideshare companies like Uber and makes clear that Uber can choose at any time to properly classify their drivers and pay them a living wage with good benefits.”
Mary Kay Henry, SEIU President.
Full Benefits of the Worker Status
- Drivers would earn the national minimum wage once they accept a request until dropping passengers at their destination, but not while they wait for a ride request.
- Drivers can still earn more than the minimum wage if the fare is higher, which is a common scenario.
- As of April 1, people over 25 years of age will earn Britain’s minimum wage; which is 8.91 pounds; amounting to $12.40.
- When on vacation, drivers will receive 12% of their income every two weeks, as per a government calculation.
Should the Same Rights Be Granted To Egyptian Uber Drivers? Well…
Uber driver in Egypt. Photo via Uber Egypt.
Egypt is one of Uber’s top 10 markets with at least 90,000 drivers according to Uber’s general manager, Ahmad Hammouda to Reuters in 2019.
Should Uber drivers in Egypt gain the status of workers as well?
It might be bad news to those who consider Uber driving as a side-hustle to make some disposable income. Because, then, there would be much less flexibility. But it would certainly benefit those who do it for a living.
What do you think?
