Business Essentials for Professionals


Pension Plans To Be Launched By Uber For Its UK Drivers

Pension Plans To Be Launched By Uber For Its UK Drivers
It was a few months ago that the ride hailing firm Uber Technologies had finally granted workers’ rights to its drivers, and now the company has said that it would start implementing its pension plan for all drivers who are eligible to get it within the United Kingdom.
Following a Supreme Court judgment in March, Uber categorized its more than 70,000 drivers in the United Kingdom as its employees and automatically granted all employee rights applicable in the country. Uber also stated that it would provide fixed benefits to the identified drivers such as holiday pay, a pension plan, and a restricted minimum salary.
On Friday, the Silicon Valley firm said that it will contribute 3 per cent of a driver's earnings towards a pension plan, while its drivers would be able to contribute a minimum of 5 per cent of their qualifying earnings.
The GMB union in the United Kingdom represents the drivers of Uber in the nation and has the authority to bargain on their behalf.
Uber and GMB also asked other ride hailing firms, such as Ola, Bolt, and Addison Lee, to provide comparable perks to their drivers.
"I am extending an invitation to work with operators such as Bolt, Addison Lee and Ola to create a cross-industry pension scheme. This will enable all drivers to save for their futures whilst working across multiple platforms," said Jamie Heywood, an executive for Uber's northern and eastern European region.
While noting that the measures taken by Uber were "positive steps", Britain's Pensions Regulator urged all companies in the so-called gig economy to include all their eligible staff in pension schemes.
"The gig economy is set to grow further as the UK emerges from the pandemic and businesses recover and it is only right that all workers contributing to the economy receive the pensions they are entitled to," a spokesperson said in an emailed statement.
The spokesperson added of the pension regulator said that enforcement action would be taken by the regulator against those employers of the gig economy who did not enroll staff "voluntarily and promptly".
Uber said that its eligible drivers would be automatically enrolled in a pension scheme offered by NOW: Pensions and would be managed by workplace solutions provider Adecco.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc