After a lot of pondering, Uber has stated in its proposal that it will not escalate its fair prices, and instead, it has said that more than 70,000 UK drivers will be given good quality wages & pensions. The officials at Uber stated that the drivers would earn the minimal salary anyhow, and this move will have a lasting impact on the economy. Uber lost a significant legal battle over the status & prestige associated with the drivers. This marked a turning point in the company’s psychology as far as the drivers’ wages are concerned.
According to some analysts, it was stated that Uber had increased California prices, and they had the mindset to implement the same strategy in all of the UK. This decision had marked the end of a five-year-long legal battle, which led to a drastic change in willingness to pay in Uber. The drivers were constantly increasing pressure on Uber to give them pay hikes & to prevent facing any action, and Uber had to grant these benefits to expand its business.
Due to some past missed entitlements, Uber had made many enemies within its circle of employees. Still, they are also tackling challenges thrown in by drivers of other countries as they face an identity crisis of being labeled or classified as either workers or self-employed. Uber has a net worth of $110bn, but they have never generated profits & the pay raise for drivers would be incubated from Wednesday, and this change will be initiated from an earnings ceiling.
Protocols for Drivers
Further, besides pay raises, they would also revise the new rates. They will also offer free insurance covering sickness, injury, & maternity payments as they have been in effect since 2018. Now, according to the policies of Uber, they have devised some new protocols, which are mentioned below-
- The National Living Wage (NLW) will affect drivers over 25 years of age after the trip request has been accepted & the expenses have been paid.
- The drivers’ holiday time will be 12.07% of their earnings, and it will be paid on a fortnightly basis.
- The drivers will be offered a pension plan which will have contributions from Uber over the long term.
- Free insurance will be provided to drivers if they fall sick or get injured.
- The drivers will enjoy the freedom to choose the location & time to drive.
What Does Uber Say?
According to the regional general manager for Northern Europe, Jamie Heywood, ” Uber is a vital component of a larger private-hire industry, so it can be said that the other operators will merge together to improve the quality of work as these workers are an integral part of Uber. “
He also said that ” According to the word of mouth of drivers, it is clear that they are insisting on the flexibility and they are simultaneously demanding the benefits. But, Uber has been finding it difficult to meet these demands of drivers as they are poles apart. So, we are trying to find a way that can merge these two demands together.”
Uber also laid stress on its statement in which they made an announcement that stated that work is a unique classification as per the UK employment law. They also said that workers should not be treated as total-blown employees, but they have the right to have a pension, basic pay, & holiday pay.
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Source: Uber Agrees to Give Good Wages & Pensions to its Drivers
