Tech Crunch learned it Uber A temporary settlement was offered to pay 11 cents per mile driven to Ober (including neighboring services such as Uber Eats) for drivers who were in individual arbitration with the company on their job classification. The drivers have been following individual arbitration yet Court of Appeal ruled In September they Can not be combined Their cases are in a collective lawsuit.
Ober refused to comment on the story, and none of the companies representing the drivers, to circumcise nor Riordan, responded to our request for comment.
If it goes back to years and covers nine states, About 160,000 Drivers were seeking to classify them as employees rather than independent contractors, partly in order to receive compensation for the company's driving expenses, such as used gasoline and vehicle maintenance.
There is another big complaint in the case concerning advice: Drivers said Ober would not be allowed to take or keep passengers' advice. (Claim that preceded June 2017, when Iber officially Give tips In its application, some retina 600 million dollars Extra drivers in one year.)
The Ober settlement, which is 11 cents per mile in all the miles of the flight to Ober, helps to go beyond these specific details. It should be noted that the drivers who accept settlement registration documents for the release of all actions filed against OBER relate to employee mismanagement.
Temporary settlement based on the sufficient number of drivers who sign the agreement (we do not know what is the minimum), among other factors, it may take six months for payments to reach the drivers.
On the one hand, this is a good result in what was a challenge for the litigation drivers. A collective lawsuit, involving several people in one case, would have resulted in economies of scale in terms of legal costs, which could have meant stronger compensation for the group.
But with appeal judges dropping this possibility, individual drivers could have been allowed to pursue their own cases against the company. This is a costly and time-consuming process and may not have been considered by many plaintiffs wanting to fight.
Perhaps it was unpopular for the operas as well. As the company prepares for the general listing and all the audit that comes with it, drawing a line in these cases by settlement is a better result than multi-year arbitration cases.
It's also an important step in Uber to fix its image with current and potential drivers.
The company went through a huge crisis last year that highlighted questionable management and bad corporate culture when it came to employees, handling drivers, communicating with regulators and so on.
(In fact, the goods were introduced as part of the company's broader efforts to repair its business and image among drivers, passengers and employees. The new CEO. )
Having a loyal and growing base of drivers is essential to expanding its business, and this is one indication of the drivers Ober is trying to do right.
However, the bargaining power here seems to have been more than Uber's.
Ober, valued at $ 72 billion, is the latest financing and is likely to reach $ 120 billion in an initial public offering, one of the world's largest private technology companies. It is estimated that 11 cents per mile offered as a settlement represents only one-third of what the driver could have recovered against only one claim, namely, reimbursement, if he had followed the arbitration instead of choosing the settlement.
Ensuring rights for the growing number of labor-market workers was one of the most controversial aspects of the flourishing of the feudal economy. It would be interesting to see how and if more of these types of cases have emerged, and if regulators have begun to wade, in cases where employers have not done so.