Canada: Uber proposes social fund for platform workers

Faced with mounting demands for platform regulation, Uber Canada has chosen to take the lead. The U.S. company is proposing the payment of allowances to platform workers into a third party account, which could be used for retirement, life insurance, dental care and education benefits not covered by the Canadian social security system. Such a fund (Flexible Benefits Fund and detailed in a press release, from 30 August) would be managed by the app-based platforms under guidance by the provincial governments. Canadian delivery drivers and chauffeurs will benefit provided they have reached the app-based platforms’ working hours thresholds (which Uber does not specify), excluding the time between each accepted ride. Companies would be required to provide the workers’ working time data, and then make the additional payment in proportion to the number of hours worked. Uber now intends to open discussions with other industry app-based platforms over its proposal. With this, Uber may be able to effectively oppose more restrictive regulations. In spring 2021 Canada launched a consultation for a bill on this issue (c.f. article No. 12430). Uber is also making its move ahead of the proposal by the Conservative Party (front runners in the early elections set for 20 September), for mandatory contributions from gig economy platforms into a savings plan that benefits workers.