Question
Read the case study below and answer ALL the questions that follow. Uber loses battle over drivers' rights in the Netherlands In 2014, Uber was
Read the case study below and answer ALL the questions that follow.
Uber loses battle over drivers' rights in the Netherlands
In 2014, Uber was one of Silicon Valley's most valuable startup however, at a private dinner, Emil Michael, Uber's SVP of business, suggested a plan to spend $1 million on a revenge campaign against journalists, in particular Sarah Lacy, a writer who has criticized the ridesharing startup. Michael's apparent plan involves using data, which the company has access to through its app, to dig up information about Lacy's personal life, then publicly distribute the compromising information. He also talked about hiring opposition researchers to dig up more dirt. This was the beginning of a series of challenges that put the spotlight on the company, Uber, which through its operational model offers ride sharing services around the world using drivers with their cars as service providers rather than employees.
More recently, Uber lost another suit over its drivers' working rights after an Amsterdam court ruled workers who ferry passengers using the Uber app in the Netherlands are covered by a local collective labour law.
The legal relationship between Uber and its drivers meets all of the characteristics of an employment contract, the court said in its judgement. Uber must apply the Collective Labour Agreement for Taxi Transport to protect drivers, allowing them in some cases to claim overdue salary. Uber was also ordered to pay the local labour union, FNV, 50 000 euros (~R837 000) in compensation for failing to comply with the agreement.
Uber said it will appeal the decision.
"We are disappointed with this decision because we know that the overwhelming majority of drivers wish to remain independent," Maurits Schnfeld, Uber's general manager, Northern Europe said in a statement. "Drivers don't want to give up their freedom to choose if, when and where to work."
A spokesperson for Uber said the company has no plans to employ drivers in the Netherlands. It expects the ruling to have major implications for the entire taxi sector, and will assess the potential implications of the decision, he said.
Uber is fighting labour unions, civil rights groups and even Democratic Senator Elizabeth Warren in the US over benefits for its drivers. In the UK, Uber earlier this year lost a lawsuit over whether its drivers are workers, forcing the company to formally recognize a labour union that will give its drivers greater collective bargaining powers.
The FNV union called Monday's ruling a "big win" in a statement, and claimed that the verdict means the Uber drivers should automatically be considered employed by the company.
(Adapted - April Roach and Ellen Milligan, 2021 - https://www.news24.com/fin24/companies/uber-oses-battle-over-driversrights-in-the-netherlands-20210913)
Answer ALL the questions in this section.
QUESTION 1 (20 Marks)
Discuss the factors that usually lie at the heart of corporate crisis and evaluate the two (2) factors being presented in the case study.
QUESTION 2 (20 Marks)
Based on the case study, discuss the five (5) most relevant ways in which personality risks in corporate governance may be managed.
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