BUSINESS NEWS LESSONS

New apps, new work opportunities

1 Warmer

Look at the companies in the box and discuss the questions below with a partner.

Uber    Lyft    Deliveroo    Task Rabbit    Upwork

1. Do you know what all these companies do?

2. Do they operate in your country?

3. Do the companies you know have a positive or negative reputation?

2 Key words and expressions

Read the article. Find the words in the text with the same meaning as these terms.

1. Add to (para 1) 

2. A big effort (para 3) 

3. Using people for your own benefit (para3) 

4. Enough (para 5) 

5. Make something continue (para 12) 

6. A job for as long as you want it (para 17) 

7. Not have enough work (para 18) 

8. Really need something (para 22) 

Worksheet

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Gig economy app seeks to balance

UK workers and employers
Union-backed start-up part of a drive to improve rights of flexible workers
BY ROBERT WRIGHT

1 When Pat Sampson’s employer forced her to 9 Ms Sampson said she used the app because she still
retire from her job as a pharmaceutical technician wanted to work and needed some extra cash. “I’ve
when she turned 65, she was not ready to stop limited myself by the fact I’m running this charity,
working — nor was she confident that she would find so it fits in with everything I need,” Ms Sampson said.
casual work to supplement her state pension. “It’s a perfect scenario for me.”

2 But since April last year, the 74-year-old has 10 According to Jeremias Prassl, a law professor at
found temporary jobs at four different cafés in the University of Oxford who has studied the gig
her hometown of Southend-on-Sea. Each has economy, many apps provide a flexible source of
paid about £10 an hour — “not bad for café labour for employers but too narrow a range of work
work”, she said — and she has been able to work opportunities to offer workers real choice.
around commitments to a charity she founded.
11 “For the [Labour Xchange] deal to work in the
3 She found the jobs through Labour Xchange, an app interests of both parties, the platform needs to
supported by Community, a trade union, which seeks provide genuine, two-sided flexibility,” Prof Prassl
to link people with employers who need temporary said. “Work needs to be available for those seeking it
workers. It is part of a drive to improve the rights of at the times they need it.”
flexible workers and avoid the unfair exploitation
12 Mr Key admitted that when he was setting up the
associated with “gig economy” platforms.
service, most trade unions refused to be involved
4 Workers signing up to the app indicate their skills because they thought the service would perpetuate
and when they are available, then wait for employers short-term, insecure working rather than creating
to contact them. They are guaranteed to be paid at long-term, secure, full-time jobs.
least the living wage — £10.55 an hour in London and 13 “They told me to get lost because I was evil,” he said.
£9 an hour elsewhere in the UK.
14 Business users say the app has clear advantages.
5 Jonathan Key, co-founder of the new service, Gareth Lewis, a builder, said his company, Lewis &
said he set it up to help retired people like Pat, Walls, had used Labour Xchange when he needed
as well as workers who may be struggling for an “extra pair of hands” for a few hours to help with
sufficient hours from their employers or those with tasks such as unloading flat-packs or pouring a large
caring responsibilities. load of concrete near Southend.
6 “These are people who are desperate for work 15 “The sort of thing that we’ve used them for is small
because they’re the ones where £20 extra a week is jobs, not really skilled work,” Mr Lewis said. “It’s
the difference between them eating and not eating,” handy for me because once they’re done they’re done
Mr Key said. and I don’t have to think about them.”
Worksheet

7 Community has invested £40,000 in the 16 Mr Key insisted the app contained multiple
development of Labour Xchange. Funding has also safeguards to ensure that workers also benefited.
come from BGV, an investor specialising in socially The service is free for employees and is funded by
responsible technology start-ups. business users, who pay £10 per booking made
via the site or £150 if they take on a worker found
8 The app launched in Southend in June 2017 and
through the site permanently.
now also operates in the London boroughs of Lambeth
and Croydon. About 6,500 people have signed up. Continued on next page
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 BUSINESS NEWS LESSONS

17 The site also prevents employers from hiring the 21 “They actually kept me on, so it’s really good,”
same person more than three times for a job, saying Ms Kelsey said. 
they should instead offer the worker a permanent post.
In addition, it offers transparency, allowing workers to 22 Labour Xchange is now looking to expand beyond
download all the information the site holds on them. its three pilot areas and eventually cover the entire
According to Mr Key, this gives them far more power UK. Mr Key said negotiations were already close to
than other sites, where workers often have to guess completion with several large employers that were
how the site’s algorithms affect their rating. desperate for staff.

18 Les Bayliss, head of special projects for 23 But he cautioned that expansion would have to be
Community, said many underemployed workers undertaken carefully, to ensure the site maintained
sought casual work and that Labour Xchange its two-sided flexibility. New local managers would
ensured that they were properly paid. need to be hired in each area to ensure the app signed
up appropriate numbers of suitable businesses and
19 “We’re working with employers to have a better found enough workers. 
environment for people that they’re employing,
under whatever contractual relationship,” 24 “One of the things that I always intended with
Mr Bayliss said. Labour Xchange was that it was a tool to connect
people to businesses on a level playing field, so
20 Jade Kelsey, 28, said Labour Xchange had helped people benefit and businesses benefit,” Mr Key said.
her to boost her income from shifts at a fast-food
restaurant chain in Southend. She had been offered
work cleaning two evenings a week at a local estate
agent, which had turned into a permanent post.

Robert Wright, 21 February 2019.

© The Financial Times Limited.
All rights reserved.
Articles republished from the Financial Times

3 Understanding the article

Read the article again and answer the questions in as much detail as you can.

1. What does Labour Xchange do?

2. Who supports the app?

Worksheet

3. Where does it operate?

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4. What do workers think about the app?

5. What do employers think about the app?

4 Business Language

A Match the words from the article (1–8) with the correct definition (a–h)

1. platform a.  Workers who you can hire and fire easily

2. start-up b. Protections

3. flexible labour c.  A new company

4. trade unions d.  A website that offers a service

5. safeguards e.  To employee someone after their initial contract

6. rating f.  Organizations that protect workers’ rights

7. contractual relationship g.  A score of how good you are at something

8.  keep someone on h.  The link between parties in a contract

B Complete the sentences with words 1–8 above. Change the form of the word if necessary.

1. We got a five-star on the customer feedback  .

2. Our equipment has to protect users.

3. I work for a . It’s only been in business for six months.

4. We’re much busier in summer than winter so we hire  then.

Worksheet

5. The states we must deliver the goods on the 14th.

6. My contract finished but the firm decided to  .

7. The demanded workers’ salaries were increased.

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5 Discussion

Discuss the questions with a partner.

1. Do you think the App is positive or negative?

2. Would you use it? Why / Why not?

3. Do many people work in the ‘gig economy’ in your country?

4. Do you think a growing ‘gig economy’ is positive or negative? Why?

5. Are trade unions weak or strong in your country?

6. How do trade unions affect work in your country?

6 Wider business theme – Self-employment and workers’ rights

A Complete the sentences with the words in the box.

contractor    employee    worker    self-employed

1. A has a full time, permanent job, holiday pay and sick pay.

2. A has their own company.

3. A works for lots of different companies for a short time.

4. A doesn’t have a full time job but has holiday pay and sick pay.

B Read either Case 1 or Case 2 and explain it to your partner.

Case 1 – Uber Workers

Uber, the taxi app, lost an employment case in the UK in 2018. Uber insisted that its drivers were
self-employed. They owned their own cars and had total freedom about when they worked. This is the
same as people who run their own business. Because the drivers were self-employed, Uber did not need
to pay them holiday or sick pay.

The Uber drivers argued that Uber controlled when they worked and made them keep their car in a
Worksheet

specified condition and follow lots of rules, like employees. The drivers took Uber to court claiming that
they were ‘workers’. This group do not have permanent work in a company but work like employees. They
must be paid holiday pay and sick pay.

The court found that the Uber drivers were ‘workers’ because they did not have control over how and when
they worked. Uber was ordered to pay the drivers holiday pay and sick pay.
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Case 2 – Deliveroo

Deliveroo, the food delivery company, won an employment case in 2018. Deliveroo insisted that it’s delivery
riders were self-employed. They worked when they wanted and were able to swap shifts with other riders,
something employees could not do. Because the riders were self-employed, Deliveroo did not need to pay
them holiday pay or sick pay.

The riders argued that they had to wear a Deliveroo uniform just like employees, and were put under
pressure to take shifts at the company. The riders took Deliveroo to court claiming that they were ‘workers’.
This group do not have permanent work in a company but work like employees. They must be paid holiday
pay and sick pay.

Deliveroo won the case. The court found that because the riders were able to swap shifts with others or
even select any other person to take their shift, they were not employees or workers. Deliveroo did not
have to pay the riders holiday pay or sick pay.

C Now discuss the questions.

1. How similar do you think the cases are?

2. Who do you support in each case?

3. Do you think employees would win in your country?

4. Are there any similar cases in your country?

Worksheet

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