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Uber outlined proposals Monday for a new sort of relationship with “gig” staff, together with its personal drivers, that might hold them as impartial contractors however with some assured advantages.
The ride-hailing big described “a new model for independent platform work” in an 18-page doc it hopes can be utilized as blueprint for Uber and comparable corporations counting on impartial staff.
The transfer comes with Uber and different corporations dealing with authorized stress to adjust to a California legislation that might require its drivers to be categorized as staff, eligible for unemployment, medical and different advantages.
Uber has backed a referendum within the state to overturn the legislation, whereas pledging to supply advantages for a social security internet that might hold gig staff impartial.
Uber has argued that the majority of its drivers need to stay impartial even when in addition they are wanting for advantages.
The firm seeks “to deliver certainty for millions of independent contractors who will increasingly rely on independent work to help them face the economic challenges that lie ahead,” Uber mentioned in its doc.
“The current health and economic crisis has brought into sharp focus the need for everyone, regardless of their employment status, to be able to find good quality, rewarding work; be able to work in the way they choose; and have access to adequate social protections and benefits.”
Uber proposed that gig economic system firms be required to ascertain “benefits funds,” permitting gig staff to accrue and use the cash for advantages or paid go away.
Chief govt Dara Khosrowshahi, writing in the New York Times, mentioned that the present employment system “is outdated and unfair” and “forces every worker to choose between being an employee with more benefits but less flexibility, or an independent contractor with more flexibility but almost no safety net.”
He added: “Uber is ready, right now, to pay more to give drivers new benefits and protections. But America needs to change the status quo to protect all workers, not just one type of work.”
Uber’s transfer comes with its enterprise mannequin beneath menace from efforts in California and elsewhere to categorise its drivers as staff.
The firm argues that such a requirement would go away jobs solely for a small fraction of its drivers and that prices would turn out to be costlier.
“Uber would not be as widely available to riders, and drivers would lose the flexibility they have today if they became employees,” Khosrowshahi wrote.
“The vast majority of drivers have said they don’t want to be employees because of how much they value flexibility.”
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