Sadiq Khan urges “all private hire operators” to pay their drivers the London living wage
The Mayor of London, Sadiq Khan, has urged “all private hire operators” in the capital to pay their drivers the London living wage following the Supreme Court ruling which determined Uber drivers were entitled to be considered as employees.
Caroline Russell, member of the London Assembly and Green Party spokesperson for Transport, asked Khan if he was going to review Uber’s operator’s licence now that drivers had won their workers’ rights battle.
In response, the Mayor said: ”I welcome the Supreme Court ruling, which is a landmark decision for people who suffer from low pay and a lack of security at work.
“I want London to be the best place to do business and to work. Gig economy workers, including private hire drivers, deserve the same rights as other workers and I urge all private hire operators in London to pay their workers the London Living Wage and to give them the security they deserve.
“Treating workers well leads to increased productivity. London is a tech powerhouse for the world – but employers, including private hire operators, must play by the rules. As the licensing authority and regulator of taxi and private hire services, Transport for London does not have the ability to stipulate the employment terms and conditions used by private hire operators.
“However, as has been demonstrated by the Supreme Court decision, drivers have a clear legal recourse through the employment tribunals system if they consider an employer is not playing by the rules.”
Following the Supreme Court ruling, Uber put together a package which they said all drivers in the UK will receive. This consisted of:
At least the minimum wage after accepting a trip request and after expenses. This is a floor and not a ceiling, with drivers able to earn more. On average, drivers earn £17 per hour in London and £14 in the rest of the UK on the same basis when driving on Uber.
All drivers will be paid holiday time based on 12.07% of their earnings, paid out on a fortnightly basis.
Drivers will automatically be enrolled into a pension plan with contributions from Uber alongside driver contributions, setting drivers up over the long term.
Free insurance in case of sickness or injury as well as parental payments, which have been in place for all drivers since 2018.
Support from Uber’s Clean Air Plan in London, which has so far raised over £120m for drivers switching to an electric vehicle.
All drivers will retain the freedom to choose if, when and where they drive.
All drivers will receive fortnightly financial payments which will cover holiday time and any necessary earnings top ups.
Jamie Heywood, Uber’s Regional General Manager for Northern and Eastern Europe, said at the time: “This is an important day for drivers in the UK. Uber drivers will receive an earnings guarantee, holiday pay and a pension, and will retain the flexibility they currently value. 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.”
Although the package was a step in the right direction for those who had been pushing for change, it didn’t quite meet the full requirements of the judge’s Supreme Court decision.
Law firm Leigh Day, who represents more than 4,000 Uber drivers in workers’ rights claims, highlighted there was no promise of back pay from the private hire operator.
Nigel Mackay, a partner in the employment team at Leigh Day, said: “Leigh Day is pleased that Uber finally recognises that all of its UK drivers are workers. However, we will be looking closely at the detail of what Uber is offering to its drivers to ensure it complies with the Supreme Court’s findings and UK employment legislation.
“So far, Uber has not promised to properly compensate its drivers for its past failure to provide paid holiday and National Minimum wage and our claim for back pay on behalf of 4,000 Uber drivers will continue.
“This is an important decision, not just for the Uber drivers who have been fighting for workers’ rights for over five years, but for the whole of the gig economy. It is our hope that other companies using a similar business model take note and recognise that the people working for them should be given the basic rights such as holiday pay and the National Minimum wage."
The Independent Workers Union (IWGB) said that Uber “still falls short of the Supreme Court ruling, which clearly stated claimants were entitled to a guaranteed minimum wage from the moment they log into the app“ which would have eliminated the “controversial and continuing practice of unpaid waiting time“. Consequently, the IWGB is now calling on HMRC to intervene and enforce this ruling for all drivers.
Nader Awaad, Vice Chair, United Private Hire Drivers branch of the IWGB, says: “Uber has finally conceded that drivers are entitled to worker rights. Make no mistake, Uber has been forced into this decision by pressure from drivers. Following the Supreme Court victory, hundreds upon hundreds of drivers responded to Uber’s recent consultation on worker rights by calling on Uber to pay up and speak to our union.
“This is a positive step from Uber, however as ever the devil is in the details and Uber is still falling short. To comply with the law, Uber needs to guarantee a minimum wage for the entire time we are logged into the app, as the Supreme Court ruled, and pay immediate compensation for backdated wages, holiday pay and pensions. Moreover, Uber must now turn over a new leaf in how they treat drivers and commit to a fair process for dismissals and trade union recognition. To win this will require a strong union - now is the time for all drivers to join UPHD.”
