Uber Strikes First Union Deal for Ride-Hailing Drivers With UK's GMB

  By Adam Clark

Uber Technologies Inc. has agreed to formally recognize one of the U.K.'s largest unions as representing its ride-hailing drivers, in a global first for the company as it adapts to mounting legal pressure over the employment status of its workers.

Uber said Wednesday that it had struck the collective-bargaining agreement with the GMB union, offering representation to up to 70,000 drivers. The deal follows a U.K. Supreme Court decision in February, which ruled that a group of former drivers were entitled to a minimum wage and other employee-type benefits. Uber subsequently said it would offer the same entitlements to all its British ride-hailing drivers. The agreement won't change drivers' right to choose when they want to work on the Uber app and they will have the choice whether they wish to be represented by the GMB. The move comes as Uber faces pressure from courts and regulators in Europe and the U.S. over the employment status of its gig workers. It has previously recognized collective-bargaining rights for Italian couriers on its Eats food-delivery platform but not for its ride-hailing drivers.

"Uber is the only major player in the industry to provide drivers with a National Living Wage guarantee, holiday pay and a pension, and this historic agreement means that Uber will be the first in the industry to ensure that its drivers also have full union representation," said Jamie Heywood, Uber's regional chief for Northern and Eastern Europe.

A collective-bargaining agreement in the U.K. could set a precedent for future negotiations with unions in the U.S. and also in the European Union, where a consultation is ongoing on possible legislation on the platform economy. Uber has previously said it opposes EU-wide legislation on the status of drivers and couriers but that it supports negotiations with platform workers, policymakers and social representatives to set earning principles.

Uber said it will work with GMB on wage guarantees, holiday pay and pension enrolment. It also said GMB will have access rights to its drivers and play a role in representing those who have had their accounts deactivated.

Write to Adam Clark at adam.clark@wsj.com

(END) Dow Jones Newswires

May 26, 2021 16:14 ET (20:14 GMT)

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