The real loser will be the economy
It’s official. In Britain, Uber Technologies UBER drivers are now employees and not gig workers. The deal is a (minor) blow to the ride share company, but could become a major hit to the broader economy if policy makers don’t show restraint. On Friday, Britain’s supreme court ruled in favor of a group of former Uber drivers that they were employees and not contractors. Exactly how much compensation the workers will receive remains to be seem and will depend on the results of a U.K. employment tribunal. Uber shares were down 0.8% in early trading Friday. But the company maintains that the ruling applies solely to those who sued because it has substantially changed its policies since the suit was brought in 2016, according to a recent report from Motley Fool. Still, the court decision surely sets a precedent that other former drivers may try to exploit.
