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Uber signs historic deal with GMB union

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Uber Technologies Inc (NYSE:UBER) has agreed on a historic deal with GMB trade union, which will now be able to represent up to 70,000 drivers across the UK.

It’s the first time a gig economy outfit formally recognises a workers’ union, allowing for collective bargaining.

READ: Uber says reclassification of UK drivers cost US$600mln

Drivers will retain the freedom to choose if, when and where they drive while also having the choice to be represented by GMB.

Uber and GMB will work together on key topics such as national earnings, pension, benefits, safety measures and account deactivations.

Grassroots group App Drivers & Couriers Union (ADCU) said this is a welcome development but it remains cautious.

The independent union said it won’t enter a similar agreement with Uber because the latter “continues to violate basic employment law such as the right to minimum wage for all working time and holiday pay”.

It added that Uber applied for declaratory relief from the High Court to confirm that its business model was not in violation of transport regulations, despite commentary suggesting the opposite by Lord Leggatt in the recent Supreme Court ruling in favour of drivers.

“We are disturbed by Uber’s divisive and anti-union behaviour in the US, most recently in California and New York State, where Uber has used the appearance of blunt collective bargaining agreements to actually weaken the power of workers rather than the opposite,” ADCU said.

“We have concerns about Uber’s motivations on this side of the Atlantic not only in the UK but throughout Europe also.”

“We are also concerned about Uber’s suggestion of preferential treatment of driver dismissal appeals. We believe that any such arrangement would be unlawful.”

GMB said the agreement builds on changes made earlier this year which guarantee all workers at least the National Living Wage, holiday pay and a pension plan.

Uber is the only major private hire operator to offer these protections, and no other operator has followed this move, GMB added.

Shares rose 1% to US$51.39 in after hours trading.

Story by ProactiveInvestors


Source: http://www.proactiveinvestors.com/companies/news/950701/uber-signs-historic-deal-with-gmb-union-950701.html


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