Read The Times Australia

Daily Bulletin

Uber’s quasi union could be a Faustian bargain for drivers

  • Written by: The Conversation Contributor

Two class actions brought by drivers against ride-sharing company Uber in California and Massachusetts have been settled, with the drivers agreeing to remain “independent contractors”. Uber will make US$100 million in payments to those involved in the case.

The question of whether the Uber drivers were contractors or employees was at the heart of the legal action. It is significant because employee status brings job security, legal protections and other benefits not applicable to contractors.

Uber had been fiercely fighting the action on the basis that it merely provides an “app” and as such does not have an employment relationship with drivers.

So, despite the settlement costing up to US$100 million, the outcome could be characterised as a win for Uber, particularly when you consider the agreement potentially saved it more than $700 million.

This “win” will not be a surprise for Uber watchers as the company has tenaciously prosecuted its growth strategy, led by the “take no prisoners” swagger of CEO Travis Kalanick. What is surprising is that as part of the settlement Uber agreed to help create and fund a driver’s association.

The status of that association (the Independent Driving Guild) is ambiguous. It is funded by Uber but purportedly “fighting for Uber drivers”. The Guild states that its purpose is to “protect, support and connect workers in the sharing economy”.

That the Guild is company sponsored evokes parallels with “yellow” or company unions that sprung up in the US in the 1930s as an attempt to circumvent the labour provisions of Roosevelt’s New Deal.

An article published in the Michigan law review in 1940 investigating the incidence of company unions during the New Deal era noted that such company unions tend to form at a time when “an outside union is making headway”.

That “company unions” were subsequently restricted under US federal labour law (the National Labor Relations Act), with specific prohibitions on company attempts to “dominate or interfere with the formation or administration of any labor organization or contribute financial or other support to it” and they may not “establish and control a "company union”, suggests that such business-sponsored unions were seen as an active obstruction of authentic worker representation.

This is further reflected in ILO convention 98, Article 2 (1949) that expressly addresses the issue of company unions and deems as inappropriate any:

“…acts which are designed to promote the establishment of workers' organisations under the domination of employers or employers' organisations, or to support workers' organisations by financial or other means, with the object of placing such organisations under the control of employers or employers' organisations.”

image The collective voice of Uber drivers is starting to have an impact. noeltock, CC BY-NC

The parallel with Uber’s approach to the emerging groups of drivers across the world, including Australia, is obvious. With class actions active in all states in the US except for the two that have settled, the collective voice of drivers was starting to pose a threat to the company’s business model. In such a situation, a quasi-union funded by the company with a guarantee that the status of drivers will not be changed is an adroit manoeuvre – even if there is a marginal cost to sweeten the deal.

Is such a circumscribed voice serving the best interests of drivers? The history of company unions suggests not, as does the lack of consensus between the Guild and the rival Uber Drivers Network, which claims 5000 members.

Dealing with market disruption in a balanced way certainly requires rethinking how workers are represented in a fragmented economy. In that sense, it is important to look beyond corporate manoeuvring. The emergence of the Guild could represent a number of things to unions, Uber and the actors in a fragmented economy:

  • the adaptation of unions to new forms of representation in the “sharing economy” and among workers who fall outside the traditional protections of labour law and union coverage
  • a Faustian bargain by unions in which they trade off authentic representative power in order to maintain a vestige of relevance in the new economy
  • a genuine attempt by Uber to engage with its drivers
  • a “back to the 1930s” moment in which a company facing a threat from discontented workers on the cusp of organising, initiates a “company” union.

New forms of collectivism are to be expected as circumstances change and it may be that the ephemeral nature of relations between participants in the “sharing economy” does not sit comfortably with traditional representative structures. What history has taught us though, is that ensuring fairness when dealing with multinational corporations requires long-term institutionalisation and independence. While the Guild has gained some form of institutionalisation, its independence is certainly compromised.

Authors: The Conversation Contributor

Read more http://theconversation.com/ubers-quasi-union-could-be-a-faustian-bargain-for-drivers-59244

Business News

The Growing Demand for Durable Plastic Packaging Supplies Across Australia

Why Do Australian Businesses Need Reliable Plastic Packaging Supplies? Businesses need packaging that can withstand everyday handling, storage, and distribution without creating avoidable delays. Pla...

Daily Bulletin - avatar Daily Bulletin

Office Cleaning Melbourne: Choosing the Right Scope for Your Office

A well-planned office cleaning Melbourne arrangement starts with a clear understanding of the premises and the people who use it. An office may include private work areas, shared desks, reception, mee...

Daily Bulletin - avatar Daily Bulletin

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Australian Entrepreneurs Should Know About Streamlining Their Financial Processes

Running a small business in Australia demands much more than just delivering a great product or serv...

Supporting Joint Health in Young and Growing Horses

Anyone who has raised a foal through to a rising three-year-old knows how deceptively fast the gro...

Why Is My Switchboard Buzzing? What a Humming Breaker Is Telling You

Most people never hear their switchboard. It sits quietly in a cupboard, a hallway or a meter box ou...

Solar Panels Geelong: Key Factors to Consider Before Installation

Solar power can help households and businesses generate electricity on site, but the value of a syst...

How Rats and Mice Get Into Homes Through Gaps Most People Miss

Rats and mice do not need an open door to get inside a home. They can squeeze through small openings...

Why a Safety Certified I/O Module Matters in Machine Design

Understanding Safety-Related I/O A safety certified I/O module is designed for use within an arch...

How to Compare Ceiling Fans online before Buying

Comparing ceiling fans online before making a purchase helps you understand how each model will su...

How Does a Portable Power Station for Carvan Adventures Support Smarter Camping?

Why Does Off-Grid Camping Need a Reliable Portable Power Station for Carvan Travel?  People often...

How Ecommerce Order Retail Fulfillment Services Improve Order Accuracy?

Why Order Accuracy Matters in Ecommerce Order Retail Fulfillment Services?  Order accuracy is one...