With Uber about to start operating in N.L., labour group says drivers need better legal protection

When Uber begins operations in St. John's later this month, there will be no legal obligation for its drivers to be paid a minimum wage, and no guarantees that they'll get benefits such as workers' compensation or employment insurance.

That's because the global ride-hailing company considers its workers to be contractors, not employees.

The Newfoundland and Labrador Federation of Labour is renewing its call for the province to capture these workers in its labour standards legislation, to ensure they don't end up falling through the cracks.

"Those types of protections that are guaranteed to workers who are classified as employees, workers for ride-hailing or app-based companies wouldn't have access to those," said NLFL president Jessica McCormick.

McCormick said that classification — as contractors, not employees — also means the company doesn't have to contribute payroll tax or workers' compensation premiums to the province.

"I think that it's just fair that a private company operating in the province would make the same contributions that other firms in the province are contributing to," McCormick said.

Uber has announced its intention to begin operations in Newfoundland and Labrador by the end of April and is currently recruiting drivers. (Ben Nelms/CBC)

It's been flagged as a problem in other areas around the world, and Ontario and British Columbia have taken steps to amend legislation to encompass those workers.

British Columbia changed its legislation last November, ordering companies to ensure delivery and ride-hailing drivers are paid a minimum wage.

McCormick said the NLFL has had discussions with Bernard Davis, the province's labour minister. She said he's told her the province wants to see how amended legislation works out in other provinces before committing to changes here.

"I'm not sure the wait-and-see approach is the right approach here for these workers," McCormick said.

"There's a huge number of gig workers already in our province, but right across the country, that deserve workplace protections. And rather than waiting to see what happens elsewhere I think we should be looking to develop a Newfoundland and Labrador approach to ensure those workers have some rights in the workplace."

MUNSU ride service shares concerns

John Harris, a director with the Memorial University of Newfoundland Students' Union, agrees with the labour federation's stance.

MUNSU has operated a car service on campus since 2001, offering free rides to students from 7 p.m. to midnight nightly from Sunday to Thursday. He said the service has always been staffed by student-employees hired by the union, granting them all the basic rights under the province's Labour Standards Act.

John Harris, Memorial University of Newfoundland Student Union’s director of external affairs, says he's alarmed by Uber's classification of its drivers as contractors. (Submitted by John Harris)

Harris said he has problems with the structure of companies like Uber.

"I think the fact that Uber does not qualify its workers as workers is very alarming," he said. "The fact they don't pay into employment insurance, the fact they don't pay into workers' compensation, the fact they don't guarantee a minimum wage … it's a bit concerning."

Harris said many of the drivers who will sign up for Uber over the next few weeks will be students, since it offers flexibility between classes or other jobs. He also wants to see the province ensure those drivers are covered by labour laws.

"While I welcome more opportunities for employment and more opportunities for transportation for students, I think that it's definitely concerning, bringing in a new group of workers that are not under labour standards or labour protections."

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