Uber drivers to begin collective bargaining after landmark court ruling

Monday, 13 February 2023

Better pay and conditions will be top of Uber drivers’ wish list as they head into negotiations with the company.

Uber drivers will be pushing for better pay and conditions during negotiations for their first ever collective agreement with the company.

Hundreds of drivers unionised after the Employment Court last year ruled that four Uber drivers were employees and not contractors of the ride-sharing provider.

The victory set the stage for collective bargaining which First Union confirmed had been initiated on Monday.

First Union strategic project coordinator Anita Rosentreter said it would be the first time Uber had to work constructively with drivers to reach agreement on pay and conditions since it arrived in New Zealand in 2014.

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'Collective bargaining is the most effective mechanism to increase workers’ wages and improve conditions on the job, and Uber drivers will finally have a united voice and a means to negotiate.'

Uber driver Bill Rama said drivers wanted to increase their pay, improve health and safety for themselves and their passengers and have more of a say in how the Uber system affected them and their families.

'At the moment, we’re paid on average less than the minimum wage, and only for about 50% of the hours we work, while Uber takes no responsibility for the safety of us or the riders.'

Uber New Zealand general manager Emma Foley said the company was committed to improving standards for all independent workers.

“Kiwi drivers consistently tell us that the flexibility that comes with driving with Uber is what they value most, and we will continue to advocate to protect that flexibility,” she said.

“We will continue to work collaboratively with industry and the New Zealand Government throughout the contractor policy reform process.”

Rosentreter said companies were obligated to engage in bargaining with unions and there were legal safeguards in place to help conclude the negotiation of a collective agreement if a company refused to participate.

'Drivers have been joining First Union so that they have a stronger collective position ahead of bargaining, and we’re continuing to welcome new members every day,” she said.

'Uber muscled into our country in 2014 without a second thought about employment law or the rights of the people working for them, and drivers are long overdue some agency in their lives.'

Last year, four drivers – through E Tū and First Union – took Uber to the Employment Court asking for a declaration that said they were employees.

The court ruled the drivers were employees and entitled to rights and protections under New Zealand employment law, including the minimum wage, guaranteed hours, holiday pay, sick leave, KiwiSaver contributions, the right to challenge an unfair dismissal, and the right to unionise and collectively bargain.

Foley said Uber was disappointed with the decision and had lodged an appeal, which would be heard in April.

“This ruling underscores the need for industry-wide minimum standards for on-demand work, while preserving the flexibility and autonomy that drivers tell us is important to them.