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Wage Cut by 2.5%. Uber takes even more from the drivers.

Discussion in 'Uber Drivers Brisbane (all QLD towns)' started by Jobless Broke, Jul 23, 2017.

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Do we take this to the Ombudsman?

This poll will close on Aug 22, 2017 at 10:43 AM.
  1. Yes

    50.0%
  2. No

    50.0%
  3. I am happy. Do nothing.

    0 vote(s)
    0.0%
Multiple votes are allowed.
  1. On Friday when I signed on to drive, I had to sign a new agreement before commencing. In the agreement it seems that Uber have reduced our portion of the ride by 2.5%, from 75% to 67.5% as from 1st August 2017. If you don't click to accept the agreement then you cant drive. It is unfair not to give us an option. I joined after April 24, 2016. I have been driving for a year and steadily my income has been whittled away by several factors, one of theses factors is that there are now too many drivers and not enough rides, and now a pay cut.
    This is the only industry in Australia where "Independent Contractors". Have absolutely no control on what they charge their customers. We also pay GST to Uber and we cant claim it back from the ATO. If GST is charged to the customer then Uber should pay us the 10% before they take their cut. Currently they are taking a portion of our GST. Early last year I wrote to the ATO asking them about this GST situation with Uber and their take on it was simple. "You signed the contract, so its your problem." I guess they are right, but what gets to me, is that we are powerless to do anything about the new contracts that keep popping up. In which industry in Australia are employees (sic) "contractors" contracts changed willy nilly. If you read your contract you will see that it is open ended, and the contract can be changed at any time. This is as good as not having a contract at all. Surely this is illegal. I believe that we should take action to set things right. All our contracts should be written using guidelines set out by the fair works ombudsman before we are asked to sign them.

    If you were working for any other company as an independent contractor, and at the start of your agreement both you and the company signed an agreement stating that you would work under specific conditions and that you would be paid a specific amount. If that company were to change that agreement at any time after the signing, with a threat that you would no longer do any more work for them unless you signed a new contract that would change the conditions and or reduce the amount of money you receive. If this had to happen, then I am sure that the fair work ombudsman would take action against the company. So what about Uber. Are there different rules for them. Uber is a money company and as you all know, money can bend governments.

    What do we do? Just take it on the chin, or do we do something about it?
     

    Attached Files:

  2. Uberx zoom

    Uberx zoom Well known member (founder)

    Drivers had to pay GST on the full gross fare before. Uber now pay their own share of GST directly to the ATO (GST on the "commision" they charge drivers). Drivers can later claim back the extra 2% charge as input creditS on their BAS statments.

    Under current classification all drivers must pay GST so there is actually no change to drives' bottom line. It is either the driver pay this portion to the ATO on behalf of Uber or Uber (now) pay it directly themselves.

    You can avoid the situation by uploading your ABN to Uber. They will not deduct the extra 2% in that case but you will need to pay GST on the full fare come BAS time.
     
  3. I am not aware that this has changed, from my last correspondence with the ATO, they did not mention it, however I will taker it at face value and investigate it later.

    I notice that you made no comment on the wage/fee reduction of 2.5%. This has probably been introduced to cover Uber's cost on the GST payments.

    FYI - I did upload my ABN to Uber months ago, and there has been no change, the fee is still the same. 25%/75% split. No change at all. I pay my GST this is not the issue. The issue is the extra 2.5% that Uber is taking.

    A contract can not be legal if it has been submitted in a manner where the lesser party to the contract feels that he/she has been pressurised into signing it (Under duress). As in. "You can no longer drive (Earn Money) if you do not agree to the contract."

    I must point out to you that this is proof that you are not in control of your service fee. If you were than you would have the power to pass this extra cost that you have just incurred, on to your riders. Do you have that option? Its Ubers way of controlling the drivers as they please. How on earth can a contract be binding if only one party is able to change it, and they change it at will. Whenever they please! They have us by the short and curlies. Ether you sign the contract or you get out! You have no option.
     
  4. DriverX

    DriverX Active Member

    Try re-uploading your ABN number to Uber. According to Uber it is business as usual and there is no change to commission for drivers who supply an ABN number.
    Other drivers, those who dont supply Uber with an ABN number can claim back the extra 2% in commission as GST input credits when they do their BAS.

    The other points you raise are spot on. Uber can change the contract at will with no prior notice and drivers have absolutely no say about it all. They must accept the new contract or be out of a job. Great "partnership" we've got going there...
     
  5. I agree with Jobless Broke, its an increase of UBER's commission by 2,5%. GST is a separate issue
     
  6. Toucan12

    Toucan12 New Member

    The 2.5% increase is only for the drivers who have not submitted their ABN and GST details to Uber as Uber will need to cover the GST to the ATO. If you have provided your ABN then the 25% (Uber take) is unchanged.
     
    Uberx zoom likes this.

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