Uber drivers win landmark appeal for employee rights

Uber drivers have won a landmark case to be classed as employees instead of contractors.

“I’m over the moon,” says Sonny Seuala, Uber driver of eight years in Wellington. “I'm very happy that it's done, it’s a good result for us.”

Seuala worked as a taxi driver before starting with Uber, and said there had been many issues.

“How they treat us, it seems to me [that] we are slaves, because if Uber gives you the job to go and do it, if you're not going to do it, they penalise you.

“Uber wants you to go to do the job 20 minutes [away], but that job is worth only four dollars, so it's a lot of stress, but you have to do it otherwise, once they penalize you, you're not coming to work for Uber anymore.”

The Court of Appeal has ruled the four Uber drivers who took the case should be classed as employees and be entitled to benefits including leave, minimum wage and holiday pay.

Seuala, who often worked 14 hour days, hoped drivers would now be entitled to years of back pay for holiday payments and has a meeting today to hear more details.

“You have to work long hours, otherwise you get nothing.”

Lalogafau Mea’ole Keil, one of the original Uber drivers who took the case, said he was proud that drivers took a stand against exploitation.

“It’s a relief. It’s been a long journey, a long fight … I think that personally for drivers, it’s an affirmation that we were right – we were not contractors but employees.

“We hope our win here will help others who are in unfair working relationships with employers to stand up for themselves.”

Photo/Austin Distel via Unsplash

A future precedent

First Union general secretary Dennis Maga said the ruling has ramifications for future negotiations with Uber.

“This is going to be a ruling that will favour many Uber drivers who are in the same condition.

“We also initiated collective bargaining with them on behalf of 1,000 drivers, and we will also continue to pursue our wage arrears, holiday entitlement and other work entitlement that workers deserve to benefit from.”

Speaking to William Terite on Pacific Mornings, Maga said there could be a wider impact for workers in other sectors.

“I've seen many Pasifika working in the industry, this will provide them some confidence and argue their case.

“I think this will also encourage not only Uber drivers but many workers in the same situation to challenge their arrangement or relationship with the economic employer, whether they can establish that they are employees or not.”

Uber plans to appeal the decision at the Supreme Court, however Maga is not giving up.

“This is a battle between David and Goliath. New Zealand was able to prove in the entire world that we can fight back against a multi-billion dollar company.

“We already assumed that Uber will appeal the case because that is their track record, but we're not going to stop and we will continue to pursue this case against Uber until such time that they recognize that they have to act as an employer rather than a company that actually can’t get away from taxes and other obligations.”

Less flexibility for workers

There are fears the case has made things more difficult for businesses who use contractors.

Uber Australia and New Zealand managing director Emma Foley said the court's decision "exacerbates the current state of uncertainty for workers who value the flexibility of contracted arrangements and for businesses across New Zealand that rely on contractor workforces."

"Flexibility and choice are hallmarks of today’s modern workforce, and Kiwis deserve certainty when it comes to the type of work they choose to do.”

“Ninety percent of drivers and delivery people tell us that they would not keep earning with Uber if the current flexibility of the work were to go away.

Workplace Relations and Safety Minister Brooke van Velden said contractors play an important role in New Zealand society.

“There are a range of workers and businesses across the country who are involved in contracting relationships, and who will benefit from increased clarity of worker status, which this Government will deliver.”

Watch the full interview on Pacific Mornings with First Union's Dennis Maga: