Uber faces internal crisis in Tenerife as workers call for strike action


  • 04-12-2024
  • Business
  • Canarian Weekly
  • Photo Credit: Stock Image
Uber faces internal crisis in Tenerife as workers call for strike action

Uber's operations in Tenerife are facing turmoil as employees voice growing discontent over working conditions, inadequate wages, and alleged workplace discrimination.

The crisis has led to a planned strike, with workers protesting what they describe as severe mismanagement and neglect by the company.

José Martínez, a union representative for Moovecars, which manages Uber’s fleet in Tenerife, has exposed the state of the company’s operations.

Initially launched 16 months ago with a fleet of 30 luxury Audi A6 vehicles under the Uber Black service, only five vehicles are currently operational. Martínez attributes this to poor maintenance and repeated mechanical failures, particularly with automatic transmissions.

“The Cabildo thinks there are 30 cars, but only four or five are actually working. The rest are broken down,” he said, criticising the local manager for neglecting routine maintenance. This neglect has reportedly led to 10 employees leaving due to stress, exacerbating the strained situation for the remaining workforce.

Economic Hardship and Discrimination

Martínez detailed the financial struggles facing drivers, many of whom now earn less than the Spanish minimum wage. “This month, I’ve worked only four days and earned €996, the same as my colleagues, essentially the minimum wage after taxes,” he explained.

At the service's inception, drivers reportedly earned between €1,600 and €1,800 per month. The lack of functioning vehicles has further impeded drivers' ability to reach the €4,000 monthly turnover needed to qualify for company incentives.

Adding to their grievances, Martínez accused the company of favouritism and workplace discrimination, claiming that employees with closer ties to the local manager are given more work opportunities while others are sidelined. “There’s clear discrimination against some drivers, including myself,” he said.

Critique of Uber’s Business Model and Local Transport Issues

Martínez has also criticised the broader structure of Uber’s operations on the island, suggesting that the Cabildo should allow individuals to apply for private hire vehicle (VTC) licenses independently rather than rely on large fleet operators.

“Why should someone need to depend on a company with 10 or more vehicles? A single car operating with Uber Black rates could generate up to €600 a day in the south,” he argued.

He also highlighted a mismatch between the demand for transport services and the limited availability of taxis, noting that tourists, who make up 95% of Uber's clientele, often choose Uber Black over traditional taxis due to convenience.

Popular spots like Siam Park and Tenerife South Airport frequently see long queues for taxis, making Uber’s service an attractive alternative despite higher fares.

Planned Strike in December

In response to these grievances, Uber's night shift drivers have announced plans for a strike in December, with some calling for a complete cessation of work. Key issues fuelling the strike include an unexpected increase in income tax retention (IRPF) without prior notice and the removal of night shift bonuses.

“Earlier, I’d receive partial night shift compensation. Now, I work the entire night shift and don’t even get €40 for it,” one driver added. Workers have accused the company of failing to provide clear or consistent tax policies, adding to their financial strain.

Calls for Accountability and Legal Action

Frustrated drivers are seeking legal advice to ensure the strike complies with regulations, aiming to maximise its impact. “We want to stage this strike now, during this critical time, and ensure no cars operate on the night shift until our demands are met,” one worker declared.

Martínez has also criticised unions for their lack of support, arguing that they have not sufficiently championed the rights of drivers. “Unions should be fighting harder when salaries don’t even reach €1,000, but we’re not seeing that kind of backing,” he said.

As the December strike looms, Uber faces mounting pressure to address its employees' concerns and resolve its operational issues in Tenerife.

Uber faces internal crisis in Tenerife as workers call for strike action

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