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Why gig economy workers aren’t cheering Uber’s about-face just yet
London (CNN Business)Uber has made a major concession on labor rights in the United Kingdom. But that doesn’t mean the gig economy will transform into a workers’ paradise overnight.
The company announced on Tuesday that it will reclassify its drivers as “workers ,” entitling them to the minimum wage, paid vacation time and a pension. “We’re turning the page on driver rights,” CEO Dara Khosrowshahi wrote in an op-ed published by the Evening Standard.
The move comes after the UK Supreme Court last month upheld a ruling that Uber drivers should be classified as workers and not independent contractors. “Workers” are granted some protections under the country’s employment laws, but they do not receive the same rights as people classified as “employees.” Uber’s UK drivers to get paid vacation, pensions following Supreme Court ruling Labor lawyers have cheered the policy changes. But the decision to grant more benefits applies only to Uber ( UBER ) drivers in the United Kingdom and may not significantly improve their pay. It does not include people who deliver food for Uber Eats, and there’s no guarantee that other gig economy companies will follow Uber’s lead.
“There’s obviously been so much pressure from drivers and trade unions […]