Ride-hailing app Uber, master trust Now Pensions and workplace solutions provider Adecco are building what they say is the first ever pension scheme for flexible workers in the private hire vehicle industry, with union GMB calling on other operators to start offering pensions. Uber is inviting Bolt, Addison Lee and Ola to join its efforts in creating a multi-employer scheme. 

 

The ride-hailing app provider will start rolling out its pension plan to eligible drivers in the UK, who will be auto-enrolled into a pension scheme provided by Now Pensions and managed by Adecco. Uber will contribute 3% of a driver’s earnings into a pension pot – the legal minimum – while drivers will need to contribute at least 5% of qualifying earnings unless they opt out. 

 

 

The pension scheme will only cover Uber drivers, but the firm pointed out that many also work with operators such as Bolt, Addison Lee and Ola. Uber is therefore asking other operators to create a cross-industry pension scheme. 

  

“We want to ensure that all eligible drivers can benefit no matter who they earn with, so today I am extending an invitation to work with operators such as Bolt, Addison Lee and Ola to create a cross-industry pension scheme,” said Uber’s regional general manager of northern and eastern Europe, Jamie Heywood. 

Now Pensions CEO Patrick Luthi called the launch of the scheme a “landmark step forward for this sector”, pledging support to develop a cross-industry pension scheme. 

 

Luthi has his eyes set on acquiring further gig economy employers for Now Pensions, saying: “We want to help other industries provide their flexible workers with access to pensions as part of our mission to create a fair pension system for all.”

The launch of the new pension scheme follows a Supreme Court ruling in March 2021 to treat all 70,000 UK drivers as workers, with the introduction of a minimum earnings guarantee and holiday pay, which was followed by a trade union recognition deal with GMB. 

 

Uber is battling a series of similar cases in other jurisdictions; last week a Dutch court ruled its drivers are employees, and the Indian Federation of App-based Transport workers has recently filed a petition in India’s Supreme Court seeking social security benefits. 

Also last week, members of the European parliament voted in favour of giving gig economy workers the same rights as employees; the European Commission already had plans to propose legislative changes by the end of this year. 

  

Stephen Timms MP, who chairs the Work and Pensions Committee, applauded the launch of the scheme “following on from the recent court case and the landmark agreement between Uber and GMB”, as it extends pension saving to a large new cohort of workers.  

 

“I also welcome Uber’s call for a cross-sector approach to pension saving,” he added. “The all-party Work and Pensions Select Committee has called on ministers for a timetable for its promised Employment Bill, to improve protections for all gig-economy workers.” 

A spokesperson for the Pensions Regulator said TPR wants to see all eligible workers in this sector have access to pensions saving.  

 

“The gig economy is set to grow further as the UK emerges from the pandemic and businesses recover and it is only right that all workers contributing to the economy receive the pensions they are entitled to.  We welcome innovative solutions by the industry which aim to give staff across the sector the opportunity to save for their retirement," the spokesperson said.
 

“Employers in the gig economy should recognise and comply with their automatic enrolment responsibilities voluntarily and promptly.  We will take enforcement action where appropriate to ensure all savers are protected," they added.
 

Mick Rix, GMB national officer, said: "Uber's pension scheme is a massive step in the right direction and will no doubt help thousands of drivers as they reach retirement age. GMB urges other platform-based operators to follow Uber's lead."