Can the EU unblock law to make gig work fairer?

A bicycle courier from Uber Eats checks his phone in the shade during the heatwave in Utrecht , Netherlands August 10, 2022. REUTERS/Piroschka van de Wouw
explainer

A bicycle courier from Uber Eats checks his phone in the shade during the heatwave in Utrecht , Netherlands August 10, 2022. REUTERS/Piroschka van de Wouw

What’s the context?

Gig workers are urging European states to salvage a deal to give them more labour and social rights during last-ditch talks next week

  • EU rules aim to give millions employment rights
  • Digital platform companies concerned over scope
  • Growing number of countries mull stronger gig worker rights

BRUSSELS - The employment rights of millions of European drivers and delivery riders at online platforms such as Uber and Deliveroo hinge on the outcome of last-ditch talks next week on rules aimed at making gig work fairer.

As digital platforms face scrutiny over gig workers' rights across the world, labour ministers from the 27-nation bloc are due to meet on Monday to try to agree a deal on draft employment rules for the sector, which have twice failed to win approval.

Next week’s meeting is seen as a last chance for agreement as the European Parliament, which has to endorse a final deal, gradually winds down ahead of a June election, with gig workers' unions using the slogan "Don't let Uber make the law" to call for approval.

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Here's what you need to know:

What are the rules and who will be affected?

The draft rules seek to stamp out what EU lawmakers have called "bogus self-employment" and recognise gig workers as employees with rights to sick pay and unemployment benefits.

However, following lobbying from platform companies and criticism from some member states, the latest draft scrapped formal criteria on how to classify workers and said it would be down to national laws and courts to determine whether a worker was an employee.

The watered-down deal would also allow the companies to challenge any ruling that their gig workers were employees.

More than 5 million of the EU's 28 million digital platform-based workers may be wrongly classified as self-employed, according to the European Commission.

A Glovo delivery rider passes by a pedestrian area in Barcelona, Spain, January 24, 2023. REUTERS/Albert Gea

A Glovo delivery rider passes by a pedestrian area in Barcelona, Spain, January 24, 2023. REUTERS/Albert Gea

A Glovo delivery rider passes by a pedestrian area in Barcelona, Spain, January 24, 2023. REUTERS/Albert Gea

The rules also seek to safeguard against abuses resulting from workplace automation, such as algorithms deciding working times, assigning clients and evaluating performance.

Under the current deal, automated decisions that affect working conditions must have some human oversight, and workers would have access to the information driving decisions powered by artificial intelligence (AI).

Who is opposing it and why?

The draft rules, which were first tabled in 2021, have been criticised by platform companies and some member states.

Companies including Uber and Deliveroo have said the new rules could lead to job losses, reduce rights to flexible working, and lead to more litigation over employment status.

In December, then French Labour Minister Olivier Dussopt said the government could not support any deal that would oblige self-employed workers who wanted to remain independent to be reclassified as employees.

That argument appeared to have gained wider support among bloc members when Estonia, Germany, Greece and France blocked the watered-down rules in February.

But gig workers and left-wing European lawmakers accused France and Germany, in particular, of putting "profit before people" and being swayed by pro-platform lobbyists.

Dutch leftist MEP Kim van Sparrentak said the failure to approve the deal was a lost opportunity to set a precedent for how Europe deals with AI in the workplace.

What are the risks for workers if talks fail again?

The March 11 talks could be the last chance for a deal on the draft legislation on gig workers' rights as the parliamentary term draws to a close in June, effectively killing the bill, political analysts and gig workers say.

After that, a newly appointed European Commission would have to make a fresh proposal before submitting it to the next European Parliament, which is predicted to swing to the right in June - likely making a deal even more difficult.

Advocates of the legislation say failure to approve EU-wide rules would leave millions of gig workers at the mercy of a patchwork of rules and legal uncertainties.

 That could lead to costly legal battles for workers and platforms alike, while perpetuating a "race to the bottom" in gig work pay and conditions, according to researchers at Fairwork, a gig research project at Britain's Oxford Internet Institute.

This article was updated on March 8, 2023, to reflect the latest developments.

(Reporting by Joanna Gill; Editing by Helen Popper.)


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Tags

  • Gig work
  • Future of work
  • Tech regulation
  • Workers' rights

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