Question: What might uber management do to keep uber drivers happy, and not fike lawsuits against the company? how might the job of an uber driver
What might uber management do to keep uber drivers happy, and not fike lawsuits against the company? how might the job of an uber driver be enriched? why is this case significant for management throughout most of tge modern world?
Travis Kalanick, the former CEO of the app-driver, car-hailing service, Uber Technologies Inc., was used to engaging in legal battles and protests about his company. Many city governments have fought the right of Uber to exist in their city because they believe Uber does not conform to regulations for taxi services. Now many of the part-time drivers who use their own vehicles to transport customers are claiming they should have the same types of benefits as full-time employees. A handful of lawyers are encouraging some of these drivers to sue Uber to meet their demands, saying the company is violating labor laws. One driver who works about 20 hours per week said, "Life is tough enough as a cabble without being treated like a second- class citizen." Uber management pointed out that more than half of Uber's drivers work nine hours per week or less, therefore they should be classified as contractors, not employees. According to the CEO, driving for Uber is not a full-time job, but a way to fill in the gaps." He also argued that the drivers want to be independent contractors because they enjoy being their own bosses. One group of drivers filed a lawsuit against the company, with the contention that Uber is illegally classifying them as contractors to avoid paying them millions of dollars in expenses. In one specific suit, an Uber driver named Barbara Ann Berwick filed a wage complaint with the California Labor Commissioner. Among her demands was reimbursement for gas and bridge tolls. The Uber attorney argued that Berwick was not an employee and was therefore not entitled to reimbursement for business expenses. The California labor Commissioner disagreed and awarded Berwick over $4,000 in business expenses and back interest. Among the many legal points raised was that drivers are not engaged in an occupation that is separate and distinct from Uber's core business. Also, the fact that the company provided drivers with iPhones and monitors their approval ratings by passengers moves the drivers closer to employee status. Uber management's argument of classifying drivers as contractors was strengthened by a National Labor Relations Board advisory memo in May, 2019. ployees under federal law. Peter Robb, the general counsel of the board, concluded that Uber drivers are independent contractors and not employees. He argued that the drivers set their hours, own their vehicles, and are free to work for Uber competitors, so they cannot be considered employees A pending California law later in 2019 threatened Uber's position that its drivers should be classified as contractors. The law states that a worker is only an independent contractor if (a) he or she is not under the control or direction of the company while working (b) if the work is "outside the usual course of the company's business, and C) if he or she is "customarily engaged" in the same kind of work that he or she performs for the company. Yet Uber Chief Legal officer Tony West argued that the company should be able to continue to classify drivers as contractors. "Just because the test is hard doesn't mean we will not be able to pass it" One Uber argument is that the usual course of its business is to provide a technology platform to its drivers, in exchange for a service fee. Uber customers are therefore the drivers, not the riders. To mollify the drivers a little, Uber management has given drivers some benefits, such as access to healthcare coverage and discounts on gasoline. Case Questions 1 What might Uber management do to keep Uber drivers happy, and not file lawsuits against the company? 2 How might the job of an Uber driver be enriched? 3 Why is this case significant for management throughout most of the modern world? Source: Original story created from facts and observations in the following sources: Sachi Barreiro, "Are Uber Drivers Employees Poor