Uber Calls the EU to Introduce a Framework for Gig Economy

Uber Calls the EU to Introduce a Framework for Gig Economy

Uber has asked the European Union to implement reforms that protect drivers and couriers operating through an app, according to CNBC. The reforms could include new laws similar to proposition 22 enacted in California, which exempted its drivers from employee status while entitling them to some benefits. 

  • Uber has called the EU to alternatively set new principles through a “European model for social dialogue” between platform workers, policymakers, and industry representatives.
  • Last year, Uber, Lyft, and other firms successfully fought against proposals in California to grant drivers the status of employees rather than independent contractors.
  • Uber has warned that treating drivers as employees would give the firm no choice but to increase costs that would be passed down to customers.
  • The tax-hailing company calls for new rules that encompass an “industry-wide level playing field” and sets a “consistent earnings baseline” for workers across different platforms.
  • Uber’s move comes ahead of a review by the European Commission on February 24, laying the groundwork for regulating gig economy platforms.
  • In 2017, Uber dealt a blow as the European Court of Justice ruled that it was a transportation firm rather than a digital firm, paving the way for stricter regulation.

Uber stock is currently closed for trading. UBER: NYSE YTD is 18.88%

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