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Uber reaches landmark agreement on drivers’ minimum wage in France

In a 'first of its kind' ruling for France, ride-hailing platforms including Uber have signed an agreement to establish minimum income per ride for drivers. Here is how that could impact both drivers and customers across France.

Uber reaches landmark agreement on drivers' minimum wage in France
An Uber logo in Paris in 2016 (Photo by Lionel BONAVENTURE / AFP)

On Wednesday, ride-share platforms (Voiture de Transport avec Chauffeur or VTCs in French) in France signed an agreement establishing a minimum income per ride, which has been hailed as a “first of its kind” for France.

Unions and ride-share workers (such as Uber drivers) have been seeking to strengthen protections in the sector for several years, which led to the decision on January 18th to institute a minimum income per trip will be set to €7.65, “regardless of the application being used.” 

Ride share organisations also agreed to institute a minimum price for rides – setting it to at least €10.20 for the cheapest ride, which represents a rise of about 27 percent from previous minimum fares.

The new minimum ride fares in France will go into effect on February 1st.

The agreement follows the ruling by a French court that VTC drivers were employees, not self-employed, and the subsequent selection of a union to represent drivers.

Unions say that the minimum pay agreements are a “first step” and that the goal would be to “negotiate about other issues faced by drivers” later this year, according to Ouest France.

The precedent for more worker’s protections

The status of gig-economy workers has been the focus of the European Union for several years. In 2017, the European Court of Justice ruled that Uber should be considered a transport services company, rather than a technology company, which paved the way for countries to impose stricter rules on the company.

In 2021, a top court ruling in the United Kingdom allowed for strengthened worker’s protections for gig economy workers, who at the time represented about 5.5 million people in Britain, according to France 24

The ruling allowed for drivers with Uber to earn a minimum wage, holiday pay and a pension, and for the “more than 70,000 drivers in the UK [to] be treated as workers, earning at least the national living wage when driving with Uber,” the taxi app said in a statement in March 2021.

READ MORE: French ‘gig economy’ workers to elect union reps for the first time

Will the court ruling mean that prices rise?

Even though Uber and other ride-shares in France will begin raising minimum prices in February, Paris prices are already quite high by international standards. 

Paris was ranked the fourth most expensive global city for the price of a 10-kilometre ride after a study by Net Credit, with average prices set to $28.89 [€26.56] as of July 2022. 

In comparison, the most expensive city, Bern, Switzerland, saw $42.80 as the average price for a 10-kilometre ride, while Dublin, Ireland, the fifth most expensive right after Paris, tracked averages for this distance at $28.58. 

In London, even after Uber raised fares when courts ruled the company should add a 20 percent value added tax (VAT), the average price of a 10km ride came out to £20.50 [€23.41] still less than that of Paris.

But in New York city, where Uber fares have been known to be high, the average price per 10-kilometre trip was $34.74.

When compared with a standard taxi, in Paris it depends where you are going. If you are travelling to one of the Paris region airports, like Charles de Gaulle or Orly, then taxis will institute a standard price which could be higher (or lower, in some cases) than an Uber. 

READ MORE: The alternatives to taking taxis when visiting Paris

In contrast, the Paris Hotel Guide estimates that the price of an Uber going from Gare de Lyon to La Défense would cost between €35-47, whereas a taxi would cost between €33-39.

Outside of the large cities in France, ride shares can be hard to come by, making taxis still an important travel alternative for people in the French countryside.

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TRAVEL NEWS

How do the EU’s new EES passport checks affect the 90-day rule?

As European travellers prepare for the introduction of enhanced passport checks known as the Entry & Exit System (EES), many readers have asked us what this means for the '90-day rule' for non-EU citizens.

How do the EU's new EES passport checks affect the 90-day rule?

From the start date to the situation for dual nationals and non-EU residents living in the EU, it’s fair to say that readers of The Local have a lot of questions about the EU’s new biometric passport check system known as EES.

You can find our full Q&A on how the new system will work HERE, or leave us your questions HERE.

And one of the most commonly-asked questions was what the new system changes with regards to the 90-day rule – the rule that allows citizens of certain non-EU countries (including the UK, USA, Canada, Australia and New Zealand) to spend up to 90 days in every 180 in the EU without needing a visa.

And the short answer is – nothing. The key thing to remember about EES is that it doesn’t actually change any rules on immigration, visas etc.

Therefore the 90-day rule continues as it is – but what EES does change is the enforcement of the rule.

90 days 

The 90-day rule applies to citizens of a select group of non-EU countries;

Albania, Andorra, Antigua and Barbuda, Argentina, Australia, Bahamas, Barbados, Bosnia and Herzegovina, Brazil, Brunei, Canada, Chile, Colombia, Costa Rica, Dominica, El Salvador, Georgia, Grenada, Guatemala, Honduras, Hong Kong, Israel, Japan, Kiribati, Kosovo, Macau, Malaysia, Marshall Islands, Mauritius, Mexico, Micronesia, Moldova, Monaco, Montenegro, New Zealand, Nicaragua, North Macedonia, Palau, Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, San Marino, Serbia, Seychelles, Singapore, Solomon Islands, South Korea, Taiwan, Timor-Leste, Tonga, Trinidad and Tobago, Tuvalu, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Vatican City and Venezuela.

Citizens of these countries can spend up to 90 days in every 180 within the EU or Schengen zone without needing a visa or residency permit.

People who are citizens of neither the EU/Schengen zone nor the above listed countries need a visa even for short trips into the EU – eg an Indian or Chinese tourist coming for a two-week holiday would require a visa. 

In total, beneficiaries of the 90-day rule can spend up to six months in the EU, but not all in one go. They must limit their visits so that in any 180-day (six month) period they have spent less than 90 days (three months) in the Bloc.

READ ALSO How does the 90-day rule work?

The 90 days are calculated according to a rolling calendar so that at any point in the year you must be able to count backwards to the last 180 days, and show that you have spent less than 90 of them in the EU/Schengen zone.

You can find full details on how to count your days HERE.

If you wish to spend more than 90 days at a time you will have to leave the EU and apply for a visa for a longer stay. Applications must be done from your home country, or via the consulate of your home country if you are living abroad.

Under EES 90-day rule beneficiaries will still be able to travel visa free (although ETIAS will introduce extra changes, more on that below).

EES does not change either the rule or how the days are calculated, but what it does change is the enforcement.

Enforcement

One of the stated aims of the new system is to tighten up enforcement of ‘over-stayers’ – that is people who have either overstayed the time allowed on their visa or over-stayed their visa-free 90 day period.

At present border officials keep track of your time within the Bloc via manually stamping passports with the date of each entry and exit to the Bloc. These stamps can then be examined and the days counted up to ensure that you have not over-stayed.

The system works up to a point – stamps are frequently not checked, sometimes border guards incorrectly stamp a passport or forget to stamp it as you leave the EU, and the stamps themselves are not always easy to read.

What EES does is computerise this, so that each time your passport is scanned as you enter or leave the EU/Schengen zone, the number of days you have spent in the Bloc is automatically tallied – and over-stayers will be flagged.

For people who stick to the limits the system should – if it works correctly – actually be better, as it will replace the sometimes haphazard manual stamping system.

But it will make it virtually impossible to over-stay your 90-day limit without being detected.

The penalties for overstaying remain as they are now – a fine, a warning or a ban on re-entering the EU for a specified period. The penalties are at the discretion of each EU member state and will vary depending on your personal circumstances (eg how long you over-stayed for and whether you were working or claiming benefits during that time).

ETIAS 

It’s worth mentioning ETIAS at this point, even though it is a completely separate system to EES, because it will have a bigger impact on travel for many people.

ETIAS is a different EU rule change, due to be introduced some time after EES has gone live (probably in 2025, but the timetable for ETIAS is still somewhat unclear).

It will have a big impact on beneficiaries of the 90-day rule, effectively ending the days of paperwork-free travel for them.

Under ETIAS, beneficiaries of the 90-rule will need to apply online for a visa waiver before they travel. Technically this is a visa waiver rather than a visa, but it still spells the end of an era when 90-day beneficiaries can travel without doing any kind of immigration paperwork.

If you have travelled to the US in recent years you will find the ETIAS system very similar to the ESTA visa waiver – you apply online in advance, fill in a form and answer some questions and are sent your visa waiver within a couple of days.

ETIAS will cost €7 (with an exemption for under 18s and over 70s) and will last for three years.

Find full details HERE

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