What could happen if Uber drivers become employees in South Africa

Hanno Labuschagne

MyBroadband
Staff member
Super Moderator
Joined
Sep 2, 2019
Messages
2,107

What could happen if Uber drivers become employees in South Africa

South African Uber riders could soon be paying more for trips available from a fewer number of Uber drivers.

This may happen if a class action lawsuit being prepared by Mbuyisa Moleele Attorneys and Leigh Day seeking to classify South African Uber drivers as employees is successful.

The claim is based on the drivers’ entitlement to rights as employees under South African legislation and will seek compensation for unpaid overtime and holiday pay.
 

ToxicBunny

Oi! Leave me out of this...
Joined
Apr 8, 2006
Messages
94,758
If the case is successful in this country, the gig economy in this country will be dead almost instantly really.

No major international company will offer their platform in this country due to the complexities and risks associated with it and having to have actual employees.
 

ToxicBunny

Oi! Leave me out of this...
Joined
Apr 8, 2006
Messages
94,758
I cannot unfortunately see this case go in the way of the drivers.

There are aspects that I can see going there way, but I think the complexities of how many drivers operate will make it a difficult one to win overall for them... but that doesn't necessarily mean the judgement couldn't be seriously bad for the gig economy type setup in general in this country.
 

eg2505

Honorary Master
Joined
Mar 12, 2008
Messages
22,792
SA isnt competitive globally with rules and laws like this.
 

grok

Honorary Master
Joined
Dec 20, 2007
Messages
23,191
Increased prices & fewer drivers ie. fewer cars to pick us up?

Who wouldn't want such a fantastic deal SA ****up?
 

Sapphiron

Centadel
Company Rep
Joined
Jan 29, 2004
Messages
2,358
Are Uber drivers being exploited by Uber:
Yes

Do Drivers deserve a larger percentage of the fees collected:
Yes

Is having them recognized as employees the solution:
Maybe, in theory

Is the South African legislation, creating an extreme amount of employment overheads, the real problem here:
Yes
 

GhostSixFour

Mafia Addict
Joined
Nov 9, 2009
Messages
14,195
If the case is successful in this country, the gig economy in this country will be dead almost instantly really.

No major international company will offer their platform in this country due to the complexities and risks associated with it and having to have actual employees.

This.

Whether SweepSouth or money4jam - they will all suddenly become employees. Eish. Well, I'm assuming here that the mentioned operate in a similar fashion to Uber.
 

killerbyte

Expert Member
Joined
May 10, 2007
Messages
2,029
Uber's model is based on drivers being contractors. I suspect that if the drivers win this case then Uber will just close up shop.
 

G.A.S

Well-Known Member
Joined
Jul 12, 2007
Messages
239
Increased prices & fewer drivers ie. fewer cars to pick us up?

Who wouldn't want such a fantastic deal SA ****up?
Whoever came up with the idea to take this to court, of course.
 

Matt91

Expert Member
Joined
Sep 4, 2014
Messages
1,738
Taxi Drivers:

tenor.gif
 

ToxicBunny

Oi! Leave me out of this...
Joined
Apr 8, 2006
Messages
94,758
SA isnt competitive globally with rules and laws like this.

There is largely very little wrong with our employment laws when they are applied correctly, and not abused (which is unfortunately very often the case from both sides).

Employees need protection from unscrupulous employers, but we also need an environment that provides an avenue for things like the Gig economy to work without the huge overhead... but it needs oversight so that it doesn't become the preferred option of "hiring" staff in the country.
 

Toxic T

Expert Member
Joined
Mar 13, 2013
Messages
1,103
There is a simple solution. Pay them their minimum wage. Limit their time on the app, therefore limiting overtime payment. Pay the drivers a commission for their trips.
 

supersunbird

Honorary Master
Joined
Oct 1, 2005
Messages
55,182
Uber's model is based on drivers being contractors. I suspect that if the drivers win this case then Uber will just close up shop.

In SA many of the drivers do not own the car, their employer would actually be some guy/girl that owns a car/a few cars, not Uber.

Maybe that's why the drivers are unhappy, the car owner takes a cut too, leaving them with too little (in their opinion).
 
Top