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The Courts Businesses Transportation

New Zealand Uber Drivers Win Landmark Case Declaring Them Employees (theguardian.com) 136

An anonymous reader quotes a report from the Guardian: A group of New Zealand Uber drivers have won a landmark case against the global ridesharing company, forcing it to treat them as employees, not contractors, and entitling them to a suite of worker rights and protections. New Zealand's employment court ruled on Tuesday that the drivers were employees, not independent contractors. While the ruling applies specifically to the case of four drivers, the court noted that it may have wider implications for drivers across the country. The court "does not have jurisdiction to make broader declarations of employment status" so all Uber drivers "do not, as a result of this judgment, instantly become employees," chief judge Christina Inglis wrote. She continued, however: "It may well have broader impact, particularly where, as here, there is apparent uniformity in the way in which the companies operate, and the framework under which drivers are engaged."

Employment status is the bedrock on which most of New Zealand's minimum employment rights rest. It is "the gate through which a worker must pass" before they can access legal minimum entitlements including the minimum wage, six minimum hours of work, rest and meal breaks, holidays, parental leave, domestic violence leave, bereavement leave, ability to pursue a personal grievance, and access to union membership and collective bargaining.
A spokesperson for Uber said the company was "disappointed" and would be appealing against the decision. They said it was "too soon to speculate" on whether New Zealand's drivers having employee status would affect the company's operations in the country more broadly.
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New Zealand Uber Drivers Win Landmark Case Declaring Them Employees

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  • by Anonymous Coward on Tuesday October 25, 2022 @11:25PM (#62998545)

    I guess no time is better than part time.

    • by ShanghaiBill ( 739463 ) on Wednesday October 26, 2022 @12:50AM (#62998641)

      When Uber and Lyft pulled out of Austin, other rideshare companies were up and operating within a week.

      What happened in Austin after Uber and Lyft left [cnbc.com]

      • And then the state stepped in, overruled Austin, and Uber and Lyft came back:

        https://www.hyrecar.com/blog/u... [hyrecar.com]

        Not sure how the other unnamed rideshare companies fared after that.

        • by hsthompson69 ( 1674722 ) on Wednesday October 26, 2022 @07:02AM (#62999065)

          The competitors couldn’t survive once the ban was lifted. Fasten’s ride volume dropped 16 percent, the company told Curbed, after Lyft and Uber returned. RideAustin, according to data from RideAustin co-founder Andy Tryba, saw a volume drop of “55 percent in 1 week,” from almost 59,000 to just over 26,000, he wrote. “It’s hard to argue that the impact to the current local incumbents (including RideAustin) wasn’t swift and significant.”

          Fasten would be shut down and sold off to a Russian technology company early last year while another upstart company, Fare, left Austin soon after Uber and Lyft returned.

          • Comment removed based on user account deletion
            • lose billions every year without any obvious reason to believe they'll ever turn themselves around

              The plan is:
              1. Lose billions while building market share
              2. Transition to self-driving cars.
              3. Fire all the drivers.
              4. Profit!!!

              Step 2 is proving to be more difficult than anticipated.

            • Regardless though, the original point seems to stand: if the big two exit a market, room is made for alternatives.

              And did those alternatives make all the former Uber drivers' dreams about secure employment and cushy benefits come true? If anything I'd think one or a few big employers make easier targets for regulation. A really fluid marketplace with constant churn in drivers and dispatchers is the opposite of the goal for drivers who want to be employees.

    • Exactly. This is just like what I keep saying about those stupid child labor laws - if parents don't want their kids working, then don't send them into work. It's the same thing for OSHA. If you aren't willing to risk a severed finger or two for your minimum wage job, then I guess you just want everything handed to you for free, pussy. Why shouldn't the ones with all the capital be able to freely exploit those who don't? It's their money.

      Bunch of goddamn whiners, those poors.
  • by kenh ( 9056 ) on Wednesday October 26, 2022 @12:37AM (#62998623) Homepage Journal

    They said it was "too soon to speculate" on whether New Zealand's drivers having employee status would affect the company's operations in the country more broadly.

    This just in, raising the cost of doing business WILL affect the company's operations...

  • by GotNoRice ( 7207988 ) on Wednesday October 26, 2022 @01:27AM (#62998689)
    The reason these services became popular is because people need cheap transportation. Traditional Taxi services had become prohibitively expensive (a short Taxi ride from the airport could easily cost 2x as much as an expensive dinner), and a big part of why is because of excessive government regulations, fees, taxes, etc. Uber and other services were able to offer rides at cheaper prices in a large part because they were able to bypass all of these fees and taxes. Now those fees and taxes are going to get piled on again, cheap rides will no longer exist, and we will be back to square one.
    • Re: (Score:2, Insightful)

      by thegarbz ( 1787294 )

      I know. We should go back to slavery to make everything cheaper. "People" who provide transport services should do so while earning next to nothing, unable to make ends meet, no holidays, pensions or any other benefits, we need cheap transport! Won't someone think of the middleclass!

      Disclaimer: It's 2022 so I feel the need to point out this post is sarcastic for the purpose of mocking the parent's point.

      • by GotNoRice ( 7207988 ) on Wednesday October 26, 2022 @05:41AM (#62998987)
        Slavery? This might come as a shock to you, but no one ever forced anyone to become an Uber driver. Uber became successful because most drivers ARE happy with the money that they are making. Many drivers started driving for Uber as a side job and ended up quitting their main job because they were making so much money from Uber. If they aren't happy with what they are being paid, they can find another job. That's simply how the world works.
        • Re: (Score:2, Informative)

          by dasunt ( 249686 )

          We have the words of a former slave about employment in a free market capitalistic system:

          "experience demonstrates that there may be a slavery of wages only a little less galling and crushing in its effects than chattel slavery, and that this slavery of wages must go down with the other"

          - Frederick Douglas

    • by splutty ( 43475 )

      Yes. Because unregulated taxi services are totally not a disaster waiting to happen.

    • Re: (Score:2, Insightful)

      by Tom ( 822 )

      is because of excessive government regulations, fees, taxes, etc.

      Can you list specific regulations, fees and taxes that you believe are excessive and explain why? Or are you repeating a talking point you've once read somewhere?

      • In London to be a taxi driver you have to learn 'the knowledge' - an impresive depth of understanding of the streets of London. Then we introduced 'private hire' cars; these have to be booked before hand, have police background check drivers, but do the same job point to point. When Uber arrived it offered services under the Private Hire legislation - but far more responsive as the app enabled easy pick ups. Taxi drivers are miserable - but their 'knowledge' is as redundant as that of a cart wright.

        • by Tom ( 822 )

          Navigation systems certainly make knowing every street a non-skill - but area knowledge is still valuable. I've driven a lot by taxi in my home city due to not owning a car and there clearly were drivers who knew the place and others who didn't. There were a couple times when I was directing the driver, telling him to ignore the navigation system.

          • Fair enough, but is it enough to justify the requirement for 'the knowledge', which has been the London alternative to NY City's medallions to keep the number of taxis under control?

      • by Swervin ( 836962 )
        I'd say the major one is the taxi medallion system, where you are required in some areas to have the medallion before operating as a taxi. The system is propped up by these medallions being transferable between operators, with the supply being kept artificially low by the government and existing operators who want to keep the value of the medallion for later resale.
      • by dskoll ( 99328 )

        The big problem in most cities is the artificial limitation on the number of taxi licenses they issue.

        I don't like Uber's business model and I've never used it, but at the same time, taxi regulations where I live are broken. Taxi drivers have to charge exhorbitant amounts because they owe hundreds of thousands of dollars to pay for their taxi plates... limited commodities that are very, very expensive.

        We can't just make it a free-for-all and license anyone who passes the safety tests, because existing

    • "The reason these services became popular is because people need cheap transportation."

      The reason these services became popular is because people need to travel between locations that they are not intimately familiar with, even in there home town. They provided a consistent and legible interface for specifying locations like "where I am standing right now" and "an address I can cut-and-paste but not necessarily pronounce or describe".

      In civilized parts of the world you can get this interface when getting a

  • Bout time them hobbits put down their pipes and got a job.
  • by djb ( 19374 ) on Wednesday October 26, 2022 @02:46AM (#62998769) Homepage

    Last year when the same case went through the U.K. every Uber driver I spoke with was very much against being an employee, as it would mean giving up the flexibility to work the hours of their own choosing.

    Being an employee comes with trade offs that not everyone wants to make. The benefits outlined in the article are not worth the loose of personal freedom to wage slavery.

    If you want to be a wage slave don’t work for Uber. But don’t ruin independence for everyone else

    • Re: (Score:3, Interesting)

      That's really strange. I know a lot of people who qualify as employees, but work on flex-time. Did you honestly not know there were many, many companies that allow workers a great deal of flexibility with respect to their work schedule, or are you just a paid industry blow boy?

      • Re: (Score:3, Insightful)

        by neaorin ( 982388 )
        Some companies offer flexibility in terms of schedule. If you want to work 11 to 19 instead of 9 to 17, or if you'd rather work the night shift, that's fine as long as you set it up in advance. But try calling your boss at 9 AM and tell them you'll be taking today and tomorrow off, just because you felt like going to the beach instead. See how many companies put up with that if you're an actual employee.
        • by splutty ( 43475 )

          "Being an employee" if the company is set up as a gig company is literally no different from "Being a gig slave".

          There is no magical "You have to work from X to Y" rule that suddenly springs into life just by being an employee. That's complete and utter nonsense.

          There are rules for overtime, and rules for minimal working hours (if that's in the contract), but any rules pertaining to at which times someone works are completely between the employer and employee, and "Whenever I want as long as I work X hours

          • "Being an employee" if the company is set up as a gig company is literally no different from "Being a gig slave".

            Ahem. I find using the term "slave" here extremely disrespectful to those who were enslaved by actual or threatened violence. Taking a job you don't especially like because it's better than your next best alternative is far different.

            There is no magical "You have to work from X to Y" rule that suddenly springs into life just by being an employee. That's complete and utter nonsense.

            There are rules for overtime, and rules for minimal working hours (if that's in the contract), but any rules pertaining to at which times someone works are completely between the employer and employee, and "Whenever I want as long as I work X hours a week." is perfectly valid.

            Yes and no. That's the point of these suits: to force the negotiated outcome to be different than what the driver/company would settle on by themselves. If NZ is going to require benefits and a minimum wage, Uber should be able to add some requirements in return. That might be

            • Yes and no. That's the point of these suits: to force the negotiated outcome to be different than what the driver/company would settle on by themselves. If NZ is going to require benefits and a minimum wage, Uber should be able to add some requirements in return. That might be minimum hours worked, a requirement to work when demand surges, a minimum number of rides per hour, or any number of other reasonable things.

              Yes Uber should be able to add those requirements, and employees can choose to be employed or not employed by Uber if they add them. What Uber shouldn't be able to do is call you contractor and not give you the legal rights of an employee.

              • Yes Uber should be able to add those requirements, and employees can choose to be employed or not employed by Uber if they add them. What Uber shouldn't be able to do is call you contractor and not give you the legal rights of an employee.

                OK. But why the distinction? Why should Uber be able to add some conditions (or not) and not others? What's your principle for deciding what can be negotiated and what's non-negotiable?

                That's the issue I have: the answer is "because a sufficient number of people elected officials who made it mandatory." I was going to write "..a majority..." but it's not even that: a small, vocal minority who don't necessarily even work for the company can force their will on everyone.

                There are some number of things one has

      • That's really strange. I know a lot of people who qualify as employees, but work on flex-time.

        That's one of the big differences between salaried and hourly. I get a salary. I negotiate my hours with my boss but primarily, we agree on my work product. As long as I get that done, he doesn't get much say in my hours. To the point, I don't have to document working a set number of hours per week.

        That's one of the questions for NZ: are Uber drivers salaried or hourly? Why? Who chooses? Why do they get that choice and not other choices?

    • Re: (Score:2, Interesting)

      by thegarbz ( 1787294 )

      There is nothing inherently "employee" about flexibility for working. That's up the digression of the employer. The fact that you (and Uber's employees) think this is a core issue means that Uber is doing well in controlling the narrative. Uber couldn't give a shit about reigning in flexibility. What they care about are things such as minimum wage, healthcare, pensions and other benefits.

      • by LubosD ( 909058 )

        I don't know about NZ, but here you certainly should/must pay contributions towards healthcare and pensions if you work as a gig worker for the like of Uber.

        But being an employee means you must contractually commit towards doing a certain number of hours every month, which goes very much against some of the benefits of occasional driving for Uber.

        • by jvkjvk ( 102057 )

          >But being an employee means you must contractually commit towards doing a certain number of hours every month, which goes very much against some of the benefits of occasional driving for Uber.

          Why? There is no reason that Uber would even chose this model of contract, given the nature of their work force. There is nothing against the law of having a different sort of labour contract.

    • I, too, have so many questions.

      Traditionally, being an employee meant my employer could set my hours. Will Uber NZ be able to do this? Will they have to? How much notice does a driver have to get before a "shift" starts? What happens if they don't respond when on shift?

      Employment can be exclusive. I cannot take another job without getting approval (or at least notifying) my employer. Can Uber forbid drivers from working at Lyft? DoorDash? A taxi company? The local bus company? A coffee shop?

      Is it possible f

    • I've never used Uber, because where I live the public buses are pretty good, and if you need a taxis it's pretty reasonably priced to ride in a real one... but I don't think the word of the Uber drivers is necessarily the whole story:

      1. Don't Uber drivers rely on positive user reviews? So if the driver complains about the company, that's probably not going to get them a good review, which will directly impact their income.

      2. The drivers were still in the "honeymoon period" where they were enjoying their new

  • Expecting companies, the place that is hiring you, to pay employee benefits is ridiculous. Get the benefits money from the state instead, not the guy giving you a chance and a job. The state should cover healthcare insurance costs for everyone, corporations should not. People are afraid to leave jobs because they might lose healthcare benefits. The only reason for anyone to be an employee is if the state does not provide vouchers for health insurance. With Obamacare, why have the concept of being an employe

    • by splutty ( 43475 )

      The companies don't pay for your health insurance. You do, indirectly. Through the company. And then you do, directly, also administrated by the company. And that goes into "Obamacare". That's how the state covers healthcare insurance costs.

      Of course, in the US it doesn't work quite that way, as it does in almost every other "Western" country, but the principle is roughly the same.

      You could argue the company should just pay you that money instead, but then you'd not have a government run healthcare insuranc

      • The companies don't pay for your health insurance. You do, indirectly.

        Surprisingly true. Companies don't actually pay for anything. Costs are always and only borne by actual living humans: employees, customers, investors, and so forth.

        You could argue the company should just pay you that money instead, but then you'd not have a government run healthcare insurance, and you'd be back to square one.

        I'd argue that if we're at square one now and government run health insurance is square two, just paying employees and letting them finance their own health care (perhaps giving poor people a base income to spend as they see fit) is square 10. We'd have a much better outcome for less money if we did that.

        • by splutty ( 43475 )

          I think one of the problems is that a lot of people in the US have no conceptual understanding how "Health Care" works in other countries, and have been so bombarded with all kinds of politically motivated "information" (for certain values of information), that it seems impossible to even have a decent conversation about it.

          • I think one of the problems is that a lot of people in the US have no conceptual understanding how "Health Care" works in other countries, and have been so bombarded with all kinds of politically motivated "information" (for certain values of information), that it seems impossible to even have a decent conversation about it.

            No doubt. You can broaden this: lots of people all over the world see all sorts of things the way they are and find it hard to conceptualize entirely different ways things could be. For example: when discussing voting, lots of people seem to think the only possible way to run an election is a one-person, one-vote, plurality wins. That's what we use in most elections most of the time. But there are at least a dozen other reasonable ways to hold democratic elections.

            In the US, many people seem to have tunnel

            • by splutty ( 43475 )

              You might want to look up how health care works in the Netherlands and Switzerland, that sound like the perfect kind of thing for your personal preference :)

    • Get the benefits money from the state instead, not the guy giving you a chance and a job.

      Where do you think the state will get the money to pay for those benefits? Thin air?

      The state should cover healthcare insurance costs for everyone, corporations should not.

      Again, where do you think the state will get the money to cover healthcare insurance costs?

      People are afraid to leave jobs because they might lose healthcare benefits.

      Bull. People are afraid to leave jobs because they're not sure if the next job

      • Where do you think the state will get the money to pay for those benefits? Thin air?

        From taxation of profits, like it currently does.

      • by jvkjvk ( 102057 )

        >>People are afraid to leave jobs because they might lose healthcare benefits.

        >Bull. People are afraid to leave jobs because they're not sure if the next job will be any better. 20% of those who quit their job during the "great resignation" now regret doing so [businessinsider.com].

        Lol. You pick out that 20% number. That means 80% *didn't* regret it. It's even funnier, because:

        "About one in six U.S. workers (16%) with employer-based health insurance is staying put at a job they'd like to leave d

    • Good point for US based people, but this story is about New Zealand, where this is already in place. Standard Health care is government provided or subsidised, by a combination of state run hospitals, funding to partially pay doctor’s fees and government run accident and medical misadventure insurance (ACC) which both means that no one is uninsured, and reduces doctor’s fees as they’re not paying massive insurance costs to cover the risk of being sued.

  • I'm torn between how low wage gig/contract worker classifications are abused to skirt labor laws and true "gig workers" forcing companies to hire them as "real employees".

    "I do this gig in my spare/free time to earn an extra bit a of money" is different from "I need a job with benefits and protection and I am willing to drive people around in my own car or deliver packages or deliver food etc."

    Fundamentally, traditional taxi and delivery services left a void that modern technology fixed. Link people with "

  • Drivers should shut up and take what they can get, because it's better than nothing.

    A company whose business model depends upon exploiting its workers should not be in business. That capital should be put to use in the furtherance of businesses that are sufficiently efficient to not require human misery to function.
  • Employment status is the bedrock on which most of New Zealand's minimum employment rights rest.

    A spokesperson for Uber said the company was "disappointed"

    This company should be surgically removed from earth.

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