Monthly Archives: September 2017

BBC interview with Dr Liz Oliver on Uber driver row

Dr Liz Oliver was invited to BBC Breakfast to talk about Uber’s appeal to the Employment Tribunal decision that a group of current and former Uber drivers should have been classed as workers rather than self-employed contractors.

Liz took part in an interview alongside Mr Farrar who was one of the claimants to the employment tribunal claim. She explained that the key issue was the identification and classification of a contract between Uber and the drivers. She pointed out that three contract forms are important to employment law: a contract DSC_4741of employment where the individual is an employee and has access to the full body of employment protection, a ‘worker’ contract which places the individual within the scope of some but not all employment protection (a kind of “employee-lite”) or self-employment where the service provider is in business on their own and falls outside of the scope of employment protection. At Employment Tribunal the claimants successfully showed that they were workers and that placed them within the scope of The National Minimum Wage provisions and the Working Time Regulations 1998 (which includes limits to working time and access to paid holiday). The key question was whether the way that the working relationship has been characterised by Uber companies within the written terms of their agreements with drivers and with passengers matched up to the ‘true relationship between the parties’. Uber describes the relationships in terms of agency. Rather than contracting with drivers to provide services to passengers, Uber describe their role is as an agent or broker; they simply bring drivers and passengers together. Ultimately the contract to take and provide a ride is between the driver and the passenger. The structure of these contractual relationships is at the heart of the Uber business model and the company has shown keen to defend its position. They were given leave to appeal to the Employment Appeal Tribunal and the hearing begins today.

A number of similar claims have been made by people who provide services through platforms so this decision will be watched closely by those who ‘participate in the platform economy’.  In Liz’s view the argument that Uber drivers are workers is a valid and strong one. However a favourable outcome for drivers would by no means end they story. An important question for examples is when drivers be considered to be workers, throughout the whole time that they are logged onto the App and ready to receive rides or only for the duration of the ride itself. Bottoming out questions such as these will test the how the architecture of existing regimes such as the framework of the national minimum wage accommodates the opportunities that platforms provide for flexible ways of working. Another question is how platforms would respond to further pressure to contract with service providers as workers. Would they seek to place more risk onto service providers to emulate self-employment more closely or would they assert more control over service providers in a manner more akin to employment? The growing body of litigation in the area of contract form is clearly playing a catalytic role in finding an appropriate way to combine flexibility and fairness. Here it seems that service providers themselves are pursuing a more ambitious set of outcomes than those proposed in the recent Taylor review of modern working practices.  Nevertheless litigation is a blunt tool when it comes to finding imaginative solutions. Could the key actors in the world of platform service provision find a space outside of this high stakes context to grapple with these issues? Innovation is, after all, at the heart of the development of the platform economy.

You can watch the interview through BBC iplayer although the programme is only available for 24 hours. BBC One (from 1h11m) 27th September – Broadcast

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Out of work and low on enthusiasm: young Germans are tuning out of politics

Vera - TheConversationBlog Header

Every third German between 18 and 30 years old considers themselves to be in a “precarious” position, engaged in temporary, unstable or non-standard employment. This is happening against the backdrop of the glorious reputation of the German training and education system, low unemployment rate and comparatively generous welfare state.

And with an election just days away, question marks remain over this group. Will they radicalise, and support populist parties? Will they stay away from the polls altogether?

Economic uncertainty has disproportionately affected young workers, who are far more likely to find themselves in unstable employment than their older counterparts. Overall, 54% of employees between 15 and 24 work in atypical employment – 53% are on temporary contracts while a further 4% are self-employed.

We surveyed 1,000 Germans between the ages of 18 and 30, and found that economically insecure young people are more at risk of feeling estranged from politics. People in insecure employment are significantly more likely to be an undecided voter or to not vote at all.

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Question: How interested would you say you are in politics? Author provided

They are almost twice as likely to be uninterested in politics as young people in secure employment. And they are more frustrated: up to 40% of them say they can’t change anything with their vote – compared to only 16% of young people in secure work.

Support for Angela Merkel’s CDU is lower among young people in insecure work than among the general German population. However, 26.8% said they still intended to vote for her. That compares to the national estimate of 37%.

The social-democratic SPD is still the second strongest party. Yet its support is on the wane thanks to its “Agenda 2010” – a policy introduced when it was in government that launched labour market reforms enabling precarious forms of work in Germany. Only 14% of our group of young insecure workers would vote for SPD compared with the 20% projected share among the general population.

Not into smaller parties

The German election system is representative. Parties with more than 5% of the vote get seats in the lower house of parliament. This year, four additional parties are likely to make it into parliament.

Alternative for Germany (AfD), a right-wing nationalist party is expected to secure 12% of the vote. Our survey shows AfD enjoys only a modest 4.3% support among young Germans, a share that does not increase among those out of stable work. The Liberals (FDP), who were absent from the lower house during the last legislative period, may get 9% of the youth vote, matching the predictions of the general vote – though we see much less support among young people in precarious work.

Left parties like the DieLinke or Greens get slightly higher shares of votes among young people in precarious work compared to people in stable work. Together, the smaller parties do get 5% of votes among young people but none attracts enough support to make it into parliament alone.

Reluctantly backing the status quo

Young Germans in precarious positions can’t seem to find a political party that represents their interests so they are likely to stay away from politics and elections. Surprisingly, if they do vote, they do as a majority support centre-right parties.

Politically, Angela Merkel has attracted a lot of support and respect for her open borders policy towards refugees. She is also credited with modernising the CDU, enabling the right to same sex marriage and making it legal for same-sex couples to adopt. Merkel’s CDU is a less conservative party than that of Helmut Kohl, which may be why it appeals to our group when they do vote.

At the same time, the Social Democrats have moved towards the middle and lost their distinct profile as a workers’ party committed to social justice.

A sociological explanation for this situation would be that precarity has already become part of an accepted new normality that the young generation does not rebel against. Rather than trying to change their lot with their vote, they turn their back on politics. They may come to change their minds on this point, but it doesn’t seem likely for this election.

Authors: Dr Vera Trappmann, University of Leeds; Dr Danat Valizade, University of Leeds
Originally published on The Conversion, 21st September, 2017