Uber drivers in New Zealand started their collective agreement with the company as they demanded better pay and working conditions. This will be the first time for Uber since they arrived in New Zealand in 2014.
(Photo : Michael M. Santiago/Getty Images)
NEW YORK, NEW YORK - JANUARY 05: The Uber logo is seen at the Uber Headquarters on January 05, 2023 in New York City. Uber drivers in NYC participated in a 24-hour strike outside of the company's NYC headquarters. The strike is the second driver strike since Uber sued to stop a raise of about $1,000 more per month that was approved by the Taxi and Limousine Commission.
NEW YORK, NEW YORK - JANUARY 05: The Uber logo is seen at the Uber Headquarters on January 05, 2023 in New York City. Uber drivers in NYC participated in a 24-hour strike outside of the company's NYC headquarters. The strike is the second driver strike since Uber sued to stop a raise of about $1,000 more per month that was approved by the Taxi and Limousine Commission.
Collective Bargaining Agreement
Drivers in New Zealand initiated their collective bargaining agreement with Uber to increase wages and improve working conditioner. According to NBR, the national trade union First Union helped the drivers to start this agreement.
The New Zealand Employment Law states that if a party receives a notice to initiate bargaining, they are required to enter the agreement. The court will give a period of preparations to both sides to ensure that both parties decide to negotiate.
First Union Delegate and Uber Driver Bill Rama stated, "Drivers want to increase our pay, improve health and safety for our passengers and us, and have more of a say in how the Uber system affects our families and us." He claimed that drivers were only paid less than minimum wage for about 50% of the working hours.
How Did It Start?
This will be Uber's first-ever collective bargaining agreement since the company arrived in the country in 2014. First Union Project Coordinator Aninta Rosentreter stated that more than 500 drivers joined the union after Employment Court ruled that drivers are employees, not contractors.
According to the ruling, these drivers are entitled to working rights such as minimum wage, holiday pay, sick leave entitlements, and KiwiSaver contributions. TechCrunch reported that the ruling also confirms drivers' right to unionize and bargain collectively.
Rosentreter described that collective bargaining is the most effective mechanism in an effort to increase workers' wages and improve conditions on the job. "Uber drivers will finally have a united voice and a means to negotiate," she added.
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Uber's Response
Despite drivers winning the ruling, Uber requested an appeal against the decision, which the company will finalize in April. The court ruled that the company would receive punishments for breaches of guidelines.
In their response, Uber's New Zealand General Manager stated that the company was disappointed with this recent decision, considering that this is the same court in 2020 that ruled a rideshare driver was not an employee of Uber.
"This ruling underscores the need for industry-wide minimum standards for on-demand work while preserving the flexibility and autonomy drivers tell us is important to them," she added. Uber would work collaboratively with the industry and the government throughout the process.
Human Resources Director reported that the company revealed in 2021 on its Economic Impact that out of 6,000 driver partners, 90% of them have schedule flexibility, which may be why they worked for Uber and Uber Eats in the first place.
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