Four New Zealand Uber drivers have won employment rights in a ruling against the company this morning, unions say.
The Employment Court has found the four current and former Uber drivers were employees, not independent contractors, in a case taken by FIRST Union and E tū.
The ruling, which sought a declaration of employment status for the four drivers, found: "Each of the plaintiff drivers was in an employment relationship when carrying out driving work for Uber and is entitled to a declaration of status accordingly."
"This is a landmark legal decision not just for Aotearoa but also internationally - what a way to finish Labour weekend," FIRST Union's Anita Rosentreter said.
"Uber has bullied its way into cities all over the world with a deliberate strategy of breaking the law and exploiting drivers - that ends here in Aotearoa today."
The case was first filed in July last year and was heard in the Employment Court in Wellington this year.
The unions representing the drivers were seeking a declaration that they were employees, with rights like minimum wage, guaranteed hours, holiday pay, sick leave and KiwiSaver contributions.
One of the drivers witnesses, Bill Rama, said: "Finally, there is justice for Uber drivers. This will mean drivers will have a say, not just be subject to the control of Uber."
"We are employees. It’s not a question of what we signed or what Uber says we are. The Court has looked at the reality of our relationship with Uber and said that drivers are employees."
Rosentreter said following today's outcome, FIRST Union will now accept Uber drivers as members and would "immediately move to initiate collective bargaining with the company."
The union says it's also acting on behalf of drivers to claim backpay for wages, holiday pay, plus other owed entitlements.
"Anyone who has driven for Uber - even if they no longer do so now - is encouraged to enquire with the union," Rosentreter said.
E tū Secretary Rachel Mackintosh says the decision has "wide-reaching implications"
"The stakes here are high - no industry is safe from being absorbed into the gig economy and, without decisions like this one, decent work is out of reach for gig workers who have little or no rights and protections."
"We’re even seeing gig work for the heroes of the Covid pandemic - many home support workers are now only able to pay their bills if someone swipes right," she said.
The judgement said the the ruling applied to the four drivers named as plaintiffs and does not mean all Ubers drivers are now employees.
"While a declaration attaches to the individual applicant worker it may well have broader impact, particularly where, as here, there is apparent uniformity in the way in which the companies operate, and the framework under which drivers are engaged."
Uber 'disappointed'
Uber said in a statement today: “We are disappointed by the Employment Court’s decision, particularly considering the same Court in 2020 ruled a rideshare driver using the Uber app was not an employee."
The company told 1News it is reviewing the decision "in detail" and will be filing an appeal.
Uber said it also wants to note that today's decision only applies to four people.
It says independent contractors play an important role in the economy. "Uber is committed to improving standards for all independent workers, across all platforms. Kiwi drivers consistently tell us that the flexibility that comes with driving with Uber is what they value most.
“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."
"We will continue to work collaboratively with industry and the New Zealand Government throughout the contractor policy reform process," the statement said.
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