Media release
14 December 2018
Claims from the US that Uber is illegally denying its drivers their right to arbitration on issues such as low pay and poor working conditions must be heeded by authorities in Australia, warns the Taxi Council of Queensland (TCQ).
A lawsuit being brought by more than 12,000 Uber drivers in California claims that the booked-hire platform is refusing to deal fairly with driver complaints in allowing a backlog of disputes to build up which could take 10 years to clear. This is just the latest in a long line of reports from around the globe of breakdowns in relations between Uber and its drivers.
This allegation of disregard for its drivers’ rights and wellbeing comes as Uber further expands its operations in Australia, having recently rolled out services in regional areas of Queensland. These allegations are something for consumers who may be attracted to cheaper prices to consider because most people will draw a line when cheaper prices involve the exploitation of gullible or vulnerable workers.
Uber requires its drivers in Australia to sign an agreement that stipulates disputes will be resolved by mediation and arbitration in Europe, in Amsterdam, so forfeiting their right to legal action in an Australian court. The lawsuit in the US involves drivers who claim their requests for arbitration of their complaints, including failure to pay minimum wage and driver safety, have been repeatedly and unnecessarily delayed by Uber. If Uber drivers in the US are finding that the arbitration process is not working, it doesn’t bode well for Australian drivers given Uber could require them to travel to Amsterdam.
TCQ CEO, Blair Davies says the Queensland Government has a crucial role to play in protecting the State economy and local job markets in regional communities. He believes greater scrutiny should be applied to companies like Uber and their overseas activities.
“These reports from California are yet another example of the bully-boy tactics which Uber and its like adopt when dealing with drivers when the regulatory environment is found wanting. How many warning signs does the State Government need before it pays heed to the risks which Uber poses to local jobs and the economy?” said Mr Davies.
“While there may be an option to opt-out of the disadvantageous arbitration provisions in the driver agreement, very few drivers would be knowledgeable enough to ask about such a possibility and even less assertive enough to follow through on exercising the option. Unfortunately, it seems that Uber picks and chooses when and how it adheres to its arbitration obligations and so drivers are likely to always receive the short end of the stick when it comes to pay and conditions.
“We’ve heard time and time again of the unsustainable and unfair conditions in which ride-sourcing drivers, such as Uber’s, work. These drivers are increasingly vocalising that they want to be listened to and for action to take place, but it never seems to be a priority.
“Uber shows little concern for the wellbeing of their customers and drivers and we fear as more overseas platforms enter and expand their operations across our State, that it will be gullible and vulnerable Queenslanders signing up as booked-hire drivers who will be the ones being taken for a ride.”
The report estimates at the rate at which Uber is processing the complaints, it will take 10 years for all to be heard, which Mr Davies believes is the company’s way of avoiding resolution of the disputes and the costs associated with the arbitration process.
“Under the agreement it uses with US drivers, Uber must pay $1,500 per driver to the arbitration service provider it has nominated. With 12,500 disgruntled drivers, the arbitration fees alone equate to over $18.75 million, and that’s before consideration of any compensation and restitution amounts payable to genuinely aggrieved drivers.
“The company has long touted that arbitration is a more efficient and cost-effective alternative to allowing its drivers access to the courts. It has been their way to avoid class action lawsuits and pretend an interest in quick and easy settlement operates behind closed doors. However, Uber’s lack of response and action in the US exposes it’s support of arbitration as a facade. It’s nothing more than a way of avoiding responsibility and hiding their lack of concern from public knowledge.
“The TCQ just wants to see a personalised transport sector where everyone gets a fair deal. Booked-hire drivers deserve to have their concerns heard and labours properly valued, and the Queensland Government should look at what’s happening globally now before it becomes too late,” concluded Mr Davies.
ENDS