Uber and Airbnb business models come under scrutiny

30 Dec 2016

Silicon Valley behemoths put under pressure from around the world in 2016

Financial Times | Leslie Hook

https://www.ft.com/content/381e27ee-c685-11e6-8f29-9445cac8966f

Excerpt:

New York guild promises to strengthen Uber drivers’ rights

One of the ways Uber has tried to head off potential labour issues this past year is by lending its support to a new type of labour organisation: the guild. Falling somewhere between a formal labour union and a trade association, the Independent Drivers Guild for Uber drivers in New York City, launched in May, has been pioneering a different model of representation.

The guild has already signed up roughly 45,000 Uber drivers since it was launched, says Jim Conigliaro Jr, founder of the guild and the general counsel at the Machinists Union District 15, which is closely affiliated with the Independent Drivers Guild. The guild draws most of its financial support from Uber and it is free for drivers to sign up. It is planning to shift to a voluntary dues system soon, which will offer extra benefits such as life insurance.

Big issues for the guild so far have been tipping, which Uber still does not allow through its app, and “deactivation”, which refers to when Uber removes drivers from the system. Working with the guild, Uber has agreed that a committee of five Uber drivers can be the ultimate arbiter over whether drivers are reactivated. This is a step forward from the previous system, under which drivers had no recourse to become reactivated.

In the long term, however, the guild’s ambitions are much bigger. It hopes to work with Uber and the Freelancers Union to create a centralised portable benefit fund that would help all independent contractors access better options for healthcare and retirement.

Because Uber drivers are independent contractors, and not full-time employees, they are not eligible in the US for employee protections such as union membership, the right to collective bargaining and healthcare or pension plans.

“This excluded class of worker is growing, and they don’t have access to unions,” says Mr Conigliaro. “I think it is important for unions to pivot, and to have another lane where they can bring workers up, and raise the floor for workers regardless of their classification.”

Read full article at:

https://www.ft.com/content/381e27ee-c685-11e6-8f29-9445cac8966f


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