Flexibility and protection can go hand in hand
Written byAt Uber, we regularly ask drivers and couriers to tell us what is most important to them. They consistently come back with the same things – flexibility and control over when and where they want to work; a decent wage; access to relevant benefits protections, and; meaningful representation.
Earlier this year we used findings from an EU-wide driver and courier survey to inform our vision for improving conditions in platform work in a White Paper “A Better Deal for European Platform Workers”. We are already putting this vision into action across Europe. Since 2018, we’ve been offering an industry-first protection scheme – including paid parental and sick leave – with AXA and now also with Allianz for all drivers and couriers. We launched tools that provide more control and transparency over earnings. We also continue increasing benefits and improving representation.
We believe a new approach is possible—one where having access to protections and benefits doesn’t come at the cost of flexibility and of job creation. At a time when people need more earning opportunities, not fewer, Uber and other platforms can be a bridge to a sustainable economic recovery. But we need clear, progressive laws that recognise the value of this unique type of independent work and pave the way for better protecting it.
Good rules should be based on what workers want. They should create better working conditions, leaving no one behind. They should promote dialogue and provide legal certainty. And they should spur innovation and open up more opportunities for everyone involved in the platform economy.
The European Commission’s proposal on EU rules for platform work published today is a unique opportunity to make these goals a reality across Europe.
Unfortunately, while the Commission’s proposal is well intentioned in its goal to improve working conditions for platform workers, in its current draft it will likely result in unintended consequences.
Why is this?
First and foremost, it is not what platform workers say they want. The Commission’s proposal calls for a far-reaching rebuttable presumption of employment – effectively meaning platform workers would be assumed to be employees unless proven otherwise in court. This directly goes against what platform workers say they want. Independent survey after survey (Accenture, Good Work, Oxford Economics) and the latest studies from Copenhagen Economics (based on a survey of 16k European couriers) as well Compass Lexecon make it clear the #1 reason people access platform work is for flexibility to earn money while balancing other commitments, and would prefer to remain independent.
It would not create better working conditions. Recent examples of reclassification in Europe have been proven to hurt workers and businesses the most. In Spain the government recently introduced a rebuttable presumption of employment resulting in 8K job losses, more precarious working conditions and some couriers estimate reduced earnings up to 70%. Same goes for Geneva where a court reclassification resulted in a 67% reduction in platform workers, with a total of 2,000 jobs lost. Even more concerning, 79% of all couriers remained unemployed 6 months after the reform.
It is more likely to lead to litigation than dialogue. A rebuttable presumption of employment triggered by criteria open to interpretation by EU Countries, and without giving sufficient weight to the leading European case of Yodel, risks increasing the likelihood of unnecessary litigation, and creating even more legal uncertainty for platform workers.
It limits opportunities for everyone in the platform ecosystem. The rebuttable presumption as currently proposed by the Commission risks putting hundreds of thousands of Europeans out of work. According to the Copenhagen Economics study, removing the possibility of flexible work could prevent up to 250,000 couriers from accessing platform work across Europe. Compass Lexecon estimates that up to 58% of drivers in the EU would not be needed by ride-hailing platforms to service demand – that is 149,000 drivers without work. Mandating a fixed-shift based model would also hurt small businesses and consumers, leading to a €100m increase in consumer fees, the loss of 19m delivery orders and a €360m reduction in revenue for restaurants.
The good news is that there is still time to get this right.
The Commission’s proposal marks the beginning of a policy process with room for constructive input and learnings before the final law is adopted.
We support EU-wide rules that improve platform work with clear criteria for genuinely self-employed people, providing legal certainty for the sector, unlocking social dialogue and allowing platforms to introduce more protections and benefits.
There are multiple positive examples where national governments, social representatives and the sector have worked together to strengthen platform work, without risking the flexibility independent workers say they want.
Countries such as Greece who have decided to set clear criteria for independent work based on European case law, and to uncouple benefits from status have made collective bargaining, safety and insurance a reality for all platform workers
An effective way to strengthen platform work, without compromising flexibility is when all parties come together to set industry-wide minimum standards negotiated through social dialogue. Discussions on upcoming reform in France and a recent Collective Bargaining Agreement in Italy show that this is possible.
Uber will continue to engage constructively with policymakers on these issues. We want to help ensure that any new European rules improve working conditions for drivers and couriers, while preserving the flexibility they value the most.
Trade-offs aren’t needed. Better protections for platform workers can go hand-in-hand with independent work, convenient and reliable services for consumers and growth opportunities for businesses.
We hope that EU decision-makers will listen to the preferences of independent workers and seize the opportunity to set a global standard for platform work.