Government & Policy

EU’s provisional deal on gig worker rights fails to get enough backing from Member States

Comment

Uber Eats bike courier
Image Credits: Franklin Heijnen (opens in a new window) / Flickr (opens in a new window) under a CC BY-SA 2.0 (opens in a new window) license.

Not so fast on that Christmas present for precarious gig workers in the EU: A political deal announced mid month, which aims to bolster platform workers rights across the European Union by establishing a legal presumption of employment, does not have the necessary qualified majority backing among Member States, it emerged today.

In an brief update to the European Council’s online press release, where it had trumpeted the earlier political deal on the file, the institution writes: “[O]n 22 December 2023 the Spanish presidency concluded that the necessary majority on the provisional agreement among member states’ representatives (Coreper) could not be reached. The Belgian presidency will resume negotiations with the European Parliament in order to reach an agreement on the final shape of the directive.”

The development was picked up earlier by Bloomberg and Euractiv — which reported that the deal failed to secure a qualified majority in a Coreper held Friday.

“No formal vote was even held on the text, as it became clear there would be no majority,” said Euractive, citing information it obtained that the Baltics, Czech Republic, France, Hungary and Italy “formally said no to a deal they believed was too far gone from the Council’s version of the directive”.

France has been fingered as leading resistance to the agreement that was announced by exhausted parliamentary negotiators mid month, with the parliament’s co-rappoteur on the file blaming opposition to the deal on French president Emmanuel Macron earlier this month.

Depending on changes demanded by blocking Member States, the file could be forced back into the EU’s three-way lawmaking negotiation process, known as trilogues, where co-legislators in the European Parliament, Council and the Commission would have to try, once again, to find a compromise they can all agree on.

However if trilogues have to be reopened in January they would come with the added complication of a hard deadline, as European elections are looming.

A failure to find a way forward on the file in a matter of months would then leave the gig worker labor reform at the mercy of reconfigured political priorities under a new European Commission and parliament — which may be even more right leaning than the current formation.

In a thread posted on X, Joaquín Pérez Rey, labor minister in the Spanish government — which has held the rotating European Council presidency for the last six months; and had announced reaching a deal on the platform worker file on December 13 — blamed conservative and liberal governments for blocking the reform.

“The Spanish Presidency of the Council had reached an agreement that had the support of all political groups in [the European] Parliament except the Far Right,” he also wrote [translated from Spanish using AI]. “This directive was inspired by the one known as the Rider Law that came into force in Spain on August 12, 2021.”

“This pioneering regulation at the international level, which positioned the EU as the leader of a fair digital transition, will have to continue being debated in the next Belgian Presidency, based on the agreement reached by the Spanish Presidency with the European Parliament,” he added. “Spain and the Ministry of Labor and Social Economy will continue to defend an ambitious Directive that truly improves the situation of workers on digital platforms.”

At their press conference earlier this month to announce the provisional deal on the file, parliamentary negotiators had said the presumption of an employment relationship between a gig worker and a platform would be triggered when two out of a list of five “indicators of control or direction are present”. Although they declined to give details of what these criteria would be.

Opposition to the agreement may center on this element of the reform, as reports have suggested blocking Member States are pushing for a higher threshold before the presumption of employments kicks in.

Asked about this, a spokeswoman for the Council told TechCrunch: “I confirm that the disagreement centers on the issue of legal presumption.”

The Council’s position, reached back in June, required at least three of the seven criteria set out in the directive needed to be met for the employment presumption to be triggered. The (now failed) provisional deal had lowered the threshold to two out of five. But the agreement announced earlier this month had also allowed for Member States to expand to the list of criteria — so the blocker looks to be having just two criteria trigger the employment presumption, rather than three.

Parliamentarians who trumpeted the deal reached earlier this month had dubbed it “historic” and “ambitious”, suggesting it would “move the burden of proof” for precarious gig workers and stop them being “falsely deemed to be self employed” by putting the onus on platforms to demonstrate an employee really is self employed.

European Union lawmakers agree deal to bolster gig worker rights

More TechCrunch

SoLo Funds CEO Travis Holoway: “Regulators seem driven by press releases when they should be motivated by true consumer protection and empowering equitable solutions.”

Fintech lender Solo Funds is being sued again by the government over its lending practices

Hard tech startups generate a lot of buzz, but there’s a growing cohort of companies building digital tools squarely focused on making hard tech development faster, more efficient, and —…

Rollup wants to be the hardware engineer’s workhorse

TechCrunch Disrupt 2024 is not just about groundbreaking innovations, insightful panels, and visionary speakers — it’s also about listening to YOU, the audience, and what you feel is top of…

Disrupt Audience Choice vote closes Friday

Google says the new SDK would help Google expand on its core mission of connecting the right audience to the right content at the right time.

Google launches a new Android feature to drive users back into their installed apps

Jolla has taken the official wraps off the first version of its personal server-based AI assistant in the making. The reborn startup is building a privacy-focused AI device — aka…

Jolla debuts privacy-focused AI hardware

OpenAI is removing one of the voices used by ChatGPT after users found that it sounded similar to Scarlett Johansson, the company announced on Monday. The voice, called Sky, is…

OpenAI to remove ChatGPT’s Scarlett Johansson-like voice

Consumer demand for the latest AI technology is heating up. The launch of OpenAI’s latest flagship model, GPT-4o, has now driven the company’s biggest-ever spike in revenue on mobile, despite…

ChatGPT’s mobile app revenue saw biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

1 day ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

3 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024