Uber's CEO took a shot at labor groups, accusing them of being driven by 'politics' in the massive fight over drivers' employment status

NEXT HE WILL BE SAYING IT'S "CLASS WAR"!

Tyler Sonnemaker
  

Carlo Allegri/Reuters

IS LIBERAL BOURGEOIS FEMINIST CAPITALIST ARIANA HUFFINGTON STILL ON UBER BOARD OF DIRECTORS?
Uber CEO Dara Khosrowshahi slammed labor groups that oppose the company's stance on drivers' employment status, accusing them of being motivated by "politics." 

During a call with investors Thursday, Khosrowshahi said groups on Uber's side of the issue, conversely, "actually are taking into account the wants and needs of drivers." TYPICAL ANTI UNION BOILER PLATE, THE BOSSES ALWAYS ARE CONCERNED ABOUT THEIR WORKERS SUDDENLY WHEN THE ISSUE OF UNIONIZING ARISES AMONG THE WORKERS THEMSELVES

Uber and other gig-economy companies are engaged in a massive legal and political battle, most notably in California, over whether their drivers are employees or independent contractors.

The state's regulators have ruled that drivers are employees under its gig-worker law and have taken Uber and Lyft to court over the issue, while the companies have pumped $30 million each into a ballot measure that would exempt them from the law.

The stakes are high — analysts said last year that an adverse ruling on the issue could bankrupt Uber and Lyft.

Uber CEO Dara Khosrowshahi took a shot at labor and driver-advocacy groups on Thursday over their stance on drivers' employment status, accusing them of not representing drivers' interests.

During Uber's quarterly earnings call, Khosrowshahi said groups opposing Proposition 22 — the company's ballot measure in California that would permanently make drivers independent contractors — were motivated by "politics."

Labor and driver groups pushed back on Khosrowshahi's comments.

"We've got terrific supporters [of Proposition 22] in the community as well who actually care about drivers, versus labor unions and politics, they actually are taking into account the wants and needs of drivers," he said.
       
"It is the height of hypocrisy for Uber's rich executives to feign that they care about drivers when they are spending hundreds of millions on a ballot proposition to prevent those workers from receiving the wages, healthcare, and fundamental rights that they have been granted under California law," the Transport Workers Union's president, John Samuelsen, told Business Insider.

Carlos Ramos, a driver and organizer for Gig Workers Rising, said: "From my years of organizing with fellow drivers I can unequivocally say that Dara's words do not reflect Uber's actions. They never have. Uber has always attempted to deceive drivers around new policies and procedures, claiming that changes were made in the best interest of drivers."

Uber, Lyft, and other ride-hailing and food-delivery companies are in the middle of a heated battle in California over whether drivers are employees or contractors under the state's gig-worker law, AB-5, which took effect this year and raised the bar companies must clear to treat workers as contractors.

While the lawmakers behind AB-5 argued it made Uber drivers employees, the companies have refused to reclassify drivers.


In June, the state agency responsible for regulating Uber and Lyft ruled that ride-hailing drivers were considered employees under AB-5, and a month earlier, a group of attorneys general from the state, Los Angeles, San Francisco, and San Diego sued both companies over their refusal to reclassify workers.

On Wednesday, Uber and Lyft got hit with another lawsuit from the state's labor commissioner, who accused them of wage theft by refusing to pay drivers minimum wage, sick pay, unemployment, and other benefits guaranteed to employees under California law.

Unlike employees, contractors aren't guaranteed those benefits, and companies aren't bound by certain labor regulations around minimum-wage payments or subject to payroll taxes for those workers, which feed into programs like unemployment insurance.

But Uber is hoping that Proposition 22, which it introduced last fall along with Lyft, DoorDash, Postmates, and Instacart, will pass in November, allowing drivers to remain classified as contractors and making its legal battles a moot point. The companies have pumped more than $110 million into a group supporting the initiative, with Uber, Lyft, and DoorDash contributing $30 million each.


Khosrowshahi called Proposition 22, which also includes new benefits for drivers such as higher wages and some reimbursement for health insurance and vehicle-related expenses, "the best of both worlds."

But driver groups have slammed the companies' proposal, saying it shortchanges drivers by not fully accounting for the actual work they do and the costs they incur. For example, under Proposition 22, drivers would not be paid for the time they spend waiting to get matched with a rider, and they would be reimbursed only $0.30 a mile (the IRS per mile rate for business-related travel is 57.5 cents, by comparison).

Both Uber and driver groups claim drivers are on their side regarding the initiative. Khosrowshahi said the "vast majority of drivers" support it, while Ramos said "tens of thousands of drivers are organizing against" it.

The stakes are undoubtedly high for both drivers and the companies. When AB-5 passed last year, analysts at Barclays concluded that having to reclassify drivers as employees in California alone could cost Uber and Lyft an additional $3,625 a driver.

"We think an adverse ruling on the contract workforce issue would potentially bankrupt both Uber and Lyft," they concluded.

Axel Springer, Insider Inc.'s parent company, is an investor in Uber.

Your FLYING Uber is arriving! Hyundai and the ride-hailing firm team up to develop a fleet of electric flying taxis, with a concept craft making its debut at CES

• Hyundai will produce and deploy the vehicles and Uber will provide ride-share
• The flying taxi seats four passengers with a pilot and can travel for 60 miles
• Hyundai revealed a concept flying taxi at CES in Las Vegas this week 

By REUTERS

PUBLISHED: 22:46 EST, 6 January 2020 | UPDATED: 20:14 EST, 7 January 2020

Uber and Hyundai have joined forces to develop a fleet of electric flying taxis.

The South Korean carmarker will produce and deploy the air vehicles, while the US firm will provide aerial ride-share services.  

A concept electric aircraft was unveiled for the first time at the Consumer Electronics Show (CES) in Las Vegas Tuesday, which is designed to carry up to four passengers with a pilot and fly on trips of up to 60 miles (100 km). 

Other global players have unveiled investments in startups that aim to deploy electric flying cars capable of vertical takeoff and landing, but there are big technological and regulatory hurdles to the plans.

Uber and Hyundai, for instance, gave widely different timelines for commercialization, underlining these challenges.

+8

A concept electric aircraft was unveiled at the Consumer Electronics Show (CES) in Las Vegas (pictured)

'We've been making steady progress towards a goal of launching Uber Air by 2023,' Eric Allison, head of Uber Elevate, said at the Consumer Electronics Show (CES) in Las Vegas.

Euisun Chung, Executive Vice Chairman of Hyundai, expects commercialization of urban air mobility service in 2028, saying it takes time for laws and systems to be in place.Share

Hyundai is the first carmaker to join Uber's air taxi project, which also counts Boeing subsidiary Aurora Flight Sciences among its partner firms.

Uber, which has partnered with eight companies on its air taxi project, however, acknowledged it would be 'unrealistic' to expect all its partners to go to market at the same time.

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Hyundai is the first carmaker to join Uber's air taxi project, which also counts Boeing subsidiary Aurora Flight Sciences among its partner firms

Hyundai Uber concept flying taxi shown off in promo vid

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'Our plans for our limited commercial operations in 2023 will likely involve other partners,' Sarah Abboud, Communications Manager at Uber, told Reuters.

And Hyundai is expected to debut its concept electric aircraft developed with Uber at CES.

'The overall cost to produce and operate UAM (urban air mobility) vehicles should be really low enough for everyone to enjoy the freedom to fly,' Shin Jai-won, Head of Urban Air Mobility Division at Hyundai Motor, said.

+8

Hyundai showed off a concept flying taxi it has been working on with Uber. The vehicle will eb all electric and travel for 60 miles on a single charge

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Hyundai has been working on designing and developing the vehicle and Uber will use its ride-sharing technology for the public to request the flying car

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A concept electric aircraft is set to be unveiled at the Consumer Electronics Show (CES) in Las Vegas this week that is designed to carry up to four passengers with a pilot and fly on trips of up to 60 miles (100 km) (concept drawing) 

Air taxis come in several shapes and sizes - electric motors replace jet engines, and aircraft have rotating wings and, in some cases, rotors in place of propellers.

The urban flight market will exceed the current number of commercial airplanes flying around the world - about 25,000, Hyundai's Shin, a former NASA engineer hired by the automaker last year, estimated, without giving any timeframe.

Last year, Hyundai pledged to invest 1.8 trillion won ($1.5 billion) in what it called 'urban air mobility' by 2025.

Boeing has said it is working with Volkswagen's sports car brand, Porsche, to develop a concept electric flying vehicle that can transport people in urban areas.

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Uber and Hyundai have joined forces to develop a fleet of electric flying taxis. The South Korean carmarker will produce and deploy the air vehicles, while the US firm will provide aerial ride-share services (concept drawing)

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Hyundai is the first carmaker to join Uber's air taxi project, which also counts Boeing subsidiary Aurora Flight Sciences among its partner firms. Pictured is a concept drawing

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There will be landing pads designed specifically for Hyundai and Uber's flying taxis. Hyundai is expected to debut its concept electric aircraft developed with Uber at CES

Published on Jan 21, 2018

The Jetsons’ futuristic lifestyle accurately predicted our everyday life decades before the 21st century’s arrival. What else can we learn from the cartoon about the future of artificial intelligence?

Watch more AJ+ In-Depth:
The Jetsons had smartphones, flying cars and robotic cleaners long before their viewers did. What clues can we take from the former family of the future to help instruct our lives?

Learn more here:
McKinsey & Company. “What the Future of Work Will Mean for Jobs, Skills and Wages.”
https://www.mckinsey.com/global-theme...

Quartz. “The White House Predicts Nearly All Truck, Taxi and Delivery Driver Jobs Will Be Automated.”
https://qz.com/868716/the-white-house...

History.com. “The New Deal.”
http://www.history.com/topics/new-deal

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Edited by: Brian Joesph
Animations by: Chia Liu
Produced by: Imaeyen Ibanga
Executive Producer: Sarah Nasr

Music tracks courtesy of APM and Audio Networks.
Footage and images courtesy of Getty, Reuters, Hanna-Barbera/Warner Bros., Amazon, Voice of America.

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• Category

  • News & Politics

UK
#Uber Supreme Court decision: Union hails ‘historic’ ruling that Uber drivers are workers

By Brian Farmer, Alan Jones and Sian Harrison
Friday, 19th February 2021

Supreme Court justices ruled on the latest round of a long-running fight between Uber operating companies and drivers on Friday.

Lawyers say the ruling means Uber drivers will be entitled to workers’ rights such as holiday pay, and will have implications for the gig economy.

Uber operating companies, who said drivers were contractors not workers, appealed to the Supreme Court after losing three earlier rounds of the fight.

But justices unanimously dismissed Uber’s appeal.

A law firm enlisted by the GMB union to represent Uber drivers says drivers will be entitled to compensation for lost pay.

A GMB spokesman said officials would now consult with Uber driver members over forthcoming compensation claims.

Mick Rix, GMB National Officer, said: “This has been a gruelling four-year legal battle for our members – but it’s ended in a historic win.

Supreme Court justices ruled on the latest round of a long-running fight between Uber operating companies and drivers on Friday.

“The Supreme Court has upheld the decision of three previous courts, backing up what GMB has said all along; Uber drivers are workers and entitled to breaks, holiday pay and minimum wage.

“Uber must now stop wasting time and money pursuing lost legal causes and do what’s right by the drivers who prop up its empire.”

An employment tribunal ruled in 2016 that Uber drivers were workers, and were entitled to workers’ rights.

That ruling was upheld by an employment appeal tribunal, and by Court of Appeal judges.


Lawyers representing Uber operating companies told Supreme Court justices that the employment tribunal ruling was wrong.

They said drivers did not “undertake to work” for Uber but were “independent, third party contractors”.

But lawyers representing drivers said the tribunal was entitled to conclude that drivers were working.

Justices unanimously ruled against Uber.

“It can be seen that the transportation service performed by drivers and offered to passengers through the Uber app is very tightly defined and controlled by Uber,” said one Justice, Lord Leggatt, in Friday’s ruling.

“The employment tribunal was, in my view, entitled to conclude that, by logging onto the Uber app in London, a claimant driver came within the definition of a ‘worker’ by entering into a contract.

“I think it clear that the employment tribunal was entitled to find that the claimant drivers were workers.”

Uber worker benefits 'will make a difference'

Tom Espiner - Business reporter, BBC News
Wed, March 17, 2021, 

Uber driver

After a long court case fought by Uber drivers to get recognition as workers, the company has offered holiday pay, a guaranteed minimum wage, and pensions benefits to its drivers.

But what do Uber drivers think of the outcome of the case?

Reactions range from welcoming it as a good thing to anger and disappointment that Uber has not gone further.

'I think it's great'

Abul Kalam, an Open University student who wants a career in education, uses Uber work in London to bring in some money.

He says the concessions from the firm are "valuing the tremendous work that Uber drivers have done over the last difficult year".

He says Ubers have transported key workers to and from their jobs and "any holiday pay will be a welcome gesture".

"The pensions are an added bonus," he says.

However, he views Uber drivers as providing a freelance service, and says they shouldn't be paid while they are waiting for fares.

"Everyone should be entitled to the same benefits. It's greatly welcome, but why should we be treated differently?" he says.

Abul added that he can't see why Uber is guaranteeing a minimum wage.

"I can't ever be on a job for an hour and not be getting £8," he says.
'It will make a difference'

Zafar Iqbal stopped working for Uber in October last year after a dispute over pay.

The Birmingham-based taxi driver could not make Uber work financially, especially with the family commitments that he has.

"The fare was always too little," he says, and the commission was "not cheap".

"Taxi costs are rising day after day and they [Uber] keep the fares low," he says. "If you go outside the city you're unlikely to get a fare back."

He says the Uber concessions on holiday pay and pensions "will make a difference, and it will help".

He adds that taxis are "really struggling at the moment - there is not much work available".
'Uber has flooded the market'

Abduzak Hadi, who is based in London, was one of the claimants in the court case against Uber.

He says that Uber has not gone far enough in its concessions, and that the Supreme Court ruling directed Uber to pay drivers from when they logged onto the app, not from when they accepted a job.

"Uber has flooded the market with drivers because it costs them nothing," he said. "I started work at 7 o'clock this morning, and I've only taken £20."

He said the holiday pay entitlement was 12.07% after expenses, which are significant.

"In reality, it will not make any difference," he says. "I'm still out here putting in long hours."

He said the pandemic had made it hard for drivers to make ends meet.

"I've been getting loans, and any savings we had are long gone. I'm in debt at the moment and rent is outstanding," he said. "I've never been like that."

California is suing Uber and Lyft, accusing the ride-hailing companies of misclassifying their drivers


Gig workers protest in favor of Assembly Bill 5 in San Francisco. 
Megan Hernbroth/Business Insider

California lawmakers filed a lawsuit against Uber and Lyft on Tuesday.
A consortium of city attorneys from the state's largest cities accused the firms of misclassifying their workers as contractors in order to avoid paying some benefits.
In response, Uber said it would fight the action in court, while Lyft said it would work with the state to find a solution.

The state cited a law passed in September, which restricts which employees companies may classify as contractors.

California on Tuesday filed a lawsuit against Uber and Lyft, accusing the ride-hailing firms of misclassifying workers in violation of a law passed by state legislators in the fall.

The lawsuit, brought by a consortium of city attorneys from Los Angeles, San Francisco, and San Diego, accuses the companies of evading "workplace standards" to avoid the cost of providing benefits like minimum wage, paid sick leave, and health insurance benefits.

"Uber and Lyft owe their drivers these benefits and protections," the lawsuit claims.

A representative for Uber accused lawmakers of obstructing Californians' access to work amid record unemployment triggered by the coronavirus pandemic.

"At a time when California's economy is in crisis with four million people out of work, we need to make it easier, not harder, for people to quickly start earning," the company said. "We will contest this action in court, while at the same time pushing to raise the standard of independent work for drivers in California, including with guaranteed minimum earnings and new benefits."

A Lyft representative echoed those claims, and said it would work with lawmakers to find a solution.

"We are looking forward to working with the Attorney General and mayors across the state to bring all the benefits of California's innovation economy to as many workers as possible, especially during this time when the creation of good jobs with access to affordable healthcare and other benefits is more important than ever," the Lyft spokesperson said.
—Xavier Becerra (@AGBecerra) May 5, 2020

Signed into law in September 2019 by Gov. Gavin Newsom, Assembly Bill 5 codifies an existing legal framework, in the form of a three-part test, to determine if a worker can be classified as a contractor or not. If a company controls how a worker does the job, or if that job is a core of the company's business, they likely fall into the employee category.

In the months following Assembly Bill 5's passage, Uber, Lyft and other gig-economy startups like DoorDash vowed to fight the new law with a $90 million ballot drive. Protect App-Based Drivers and Services, an organization set up by the trio of companies to fight the law, did not immediately return a request for comment.

The organization has argued that a change in classification under the new law would strip workers of their flexibility, citing the overwhelming number of gig-workers who work less than full-time. They hope to gather enough signatures to force voters to decide in November if the law should stand.

"If successful, this lawsuit would force more Californians out of work and eliminate access to these essential services when millions are relying on them," the group said in a press release Tuesday.

Still, the state and other activists maintain that flexibility can still be offered if workers are considered employees.

"Both companies have launched an aggressive public relations campaign in the hopes of enshrining their ability to mistreat their workers, all while peddling the lie that driver flexibility and worker protections are somehow legally incompatible," the lawsuit reads.

Read the full lawsuit at BUSINESS INSIDER


California sues Uber, Lyft over misclassifying drivers as contractors

(Reuters) - California and three of its largest cities on Tuesday sued Uber Technologies Inc and Lyft Inc, accusing them of classifying their drivers improperly as independent contractors instead of employees, evading workplace protections and withholding worker benefits.

The suit, joined by Los Angeles, San Francisco and San Diego, was brought under a new state law intended to protect workers in the so-called gig economy. It argued the companies’ misclassification harms workers, law-abiding businesses, taxpayers, and society more broadly.

The controversial law strikes at the heart of the business model of technology platforms like Uber, Lyft, Postmates, DoorDash and others who rely heavily on the state’s 450,000 contract workers, not full-time employees, to drive passengers or deliver food via app-based services.

“No business model should hang its success on mistreating workers and violating the law,” California Attorney General Xavier Becerra said during a virtual news conference with his city counterparts, adding that Uber and Lyft drivers lacked basic worker protections, including sick leave and overtime payment.

Shares in Uber and Lyft dropped briefly but recovered shortly after the lawsuit was announced.

Uber shares were up more than 2% and Lyft shares flat in a broadly positive market.

Uber in a statement said it will contest the action in court, while pushing for the implementation of its own proposal for additional driver benefits.


“At a time when California’s economy is in crisis with four million people out of work, we need to make it easier, not harder, for people to quickly start earning,” the company said.

Labor unions argue that Uber is trying to circumvent labor laws by creating a new “underclass” of worker entitled to significantly fewer benefits than traditional employees.

Lyft in a statement said it would work with the attorney general and mayors, “to bring all the benefits of California’s innovation economy to as many workers as possible.” The company declined to say whether it was pursuing a settlement or would fight the lawsuit in court.

Uber in December sued to block the new law, which is known as AB5, arguing that it punished app-based companies. The company on Tuesday said the new lawsuit was unfairly and arbitrarily singling out ride-hailing companies, but also posed a threat to independent workers across industries.

The companies in the past have said their drivers were properly classified as independent contractors, adding that the majority of them would not want to be considered employees, cherishing the flexibility of on-demand work.

The city attorneys on Tuesday did not say whether they had immediate plans to sue other gig economy companies.

The coronavirus crisis in particular has exposed gig workers’ lack of a safety net, with tens of thousands of them seeking sick leave and unemployment benefits.


“American taxpayers end up having to help carry the load that Uber and Lyft don’t want to accept. These companies will take the workers’ labor, but they won’t accept the worker protections,” Becerra said.

Becerra also referred to Uber’s and Lyft’s push to include its drivers in a federal coronavirus relief bill for unemployment benefits. Those benefits are generally reserved for workers whose employers pay into the unemployment insurance system, which Uber and Lyft do not.

California sues Uber, Lyft over alleged labor law violations

by Stefanie Dazio

Credit: CC0 Public Domain

California sued ride-hailing companies Uber and Lyft on Tuesday, alleging they misclassified their drivers as independent contractors under the state's new labor law.

Attorney General Xavier Becerra and the city attorneys of Los Angeles, San Diego and San Francisco announced the lawsuit Tuesday. The labor law, known as AB5 and considered the nation's strictest test, took effect Jan. 1 and makes it harder for companies to classify workers as independent contractors instead of employees who are entitled to minimum wage and benefits such as workers compensation.

California represents Uber and Lyft's largest source of revenue. The companies, as well as Doordash, are funding a ballot initiative campaign to exclude their drivers from the law while giving new benefits such as health care coverage. The initiative is likely to qualify for the November ballot.

Uber said in a statement it would contest the lawsuit in court "while at the same time pushing to raise the standard of independent work for drivers in California, including with guaranteed minimum earnings and new benefits."

"At a time when California's economy is in crisis with 4 million people out of work, we need to make it easier, not harder, for people to quickly start earning," the statement said.

Lyft, however, vowed to work with the attorney general and other officials to "bring all the benefits of California's innovation economy to as many workers as possible, especially during this time when the creation of good jobs with access to affordable health care and other benefits is more important than ever."

Becerra highlighted the coronavirus pandemic during Tuesday's virtual news conference, saying if drivers contract the virus or lose their jobs as a result they won't have access to health care coverage and other worker protections.

"They're the ones who would have to worry about how they'll pay their bills, what they'll do in the future, how they'll survive moving forward economically," Becerra said.

Jerome Gage, a Los Angeles Lyft driver, said in a statement that drivers haven't been given personal protective equipment during the pandemic.

"I am terrified of getting sick as passengers cough and sneeze in my car constantly. Uber and Lyft have abandoned drivers and passengers by failing to provide personal protective equipment," said Gage, who is also a leader of the Mobile Workers Alliance, a group of Southern California drivers urging the state to enforce the labor law against Uber and Lyft. "I am unable to stay home. If I don't drive, I have no income. I have no choice. If I don't risk my health, I won't have money to eat and pay my bills."

Democratic Gov. Gavin Newsom said his upcoming state budget will include more money for state and local attorneys to file enforcement actions against companies in the gig economy that are not complying with the state's law on worker classifications.

He said Tuesday that roughly 450,000 Californians who have filed for unemployment have done so under a program for workers in the gig economy. He said issues around how gig workers receive unemployment benefits are heightened amid the pandemic.

But members of the Protect App-Based Drivers & Services coalition said in a statement they opposed the state's lawsuit, arguing it moves to take away drivers' choices to work as independent contractors.

A federal judge in February denied Uber and Postmates' request for a preliminary injunction that would have exempted them from the law. But separately, a federal judge in January indefinitely blocked the law from applying to more than 70,000 independent truckers, deciding that it is preempted by federal rules on interstate commerce.

A state judge, however, ruled in February that Instacart, a grocery delivery company, is likely misclassifying some of its workers as independent contractors instead of employees and flouting the labor law.

The state Legislature is also considering amending the law, though lawmakers are split whether to broaden or narrow it as other groups—such as freelance writers and photographers—contend they have been hurt by it through unintended consequences.

The state's lawsuit, filed in San Francisco, alleges that Uber and Lyft haven't paid enough payroll taxes as a result of the misclassification. The suit seeks restitution for unpaid wages owed to drivers, civil penalties and a permanent ruling that would prohibit the companies from misclassifying drivers in the future.

New Jersey's labor department filed a $640 million tax assessment last year against Uber, saying the company misclassified its drivers

Uber, Postmates sue to challenge California's new labor law