Cab industry Criticism of Uber reaches the St. Gallen government

SDA

19.8.2024 - 16:20

Uber's driving services are criticized by trade unions and others as competition to conventional cab companies. They are now permitted in the city of St. Gallen. (archive image)
Uber's driving services are criticized by trade unions and others as competition to conventional cab companies. They are now permitted in the city of St. Gallen. (archive image)
Keystone

The St. Gallen city parliament has paved the way for app-based transportation services with new cab regulations. The city council countered criticism of the "free ride for Uber" by pointing out that the canton is responsible for labor law regulations. Now the issue has landed with the government.

Keystone-SDA

Criticism had been vociferous in the run-up to the vote - but after the debate, the result in the St. Gallen city parliament at the end of June was clear: A new passenger transport regulation was approved by 42 votes to 15. The referendum against it has since failed.

One of the changes is that app-based transport services such as those offered by Uber will also be possible in the city of St. Gallen. This change was also the target of criticism from Unia and Juso.

According to a communiqué, services such as those offered by Uber rely on systematic undeclared work because employees are used as bogus self-employed workers. For example, Uber employees are not registered with the social security system and do not receive wages that are customary in the industry.

During the debate, the city council argued that the canton was responsible for labor law matters. SP cantonal councillor Eva Lemmenmeier used this statement as the basis for a new proposal. In it, she wants to know from the government how the canton deals with bogus self-employment in the cab industry.

Who controls it?

In the motion, she referred, among other things, to a Federal Court ruling from February 2023, which states that the relationship between drivers and Uber is considered to be non-self-employment under labor law.

Among other things, the government should explain whether the Social Insurance Institution (SVA) has a practice for drivers who use the Uber app. "Does the SVA generally check cab drivers to see whether they are bogus self-employed?" is another question.