The pay rules for ride-sharing companies are deeply flawed and they are leaving Minneapolis
Minneapolis Drivers Will Not Leave Me And Is This a Good Place For Them? A New Vote on the Minnesota Minimum Wage Measure
Last year, Minnesota Governor Tim Walz vetoed a bill that would’ve increased wages for Uber and Lyft drivers across the state, saying at the time it could “make Minnesota one of the most expensive states in the country for rideshare.” Concerns remain about how people will get around the city and the effect it will have on those with disabilities after both of them said they wouldn’t be coming back. The number of cab drivers in Minneapolis is less than in the previous year, according to a report.
Minneapolis Mayor Jacob Frey vetoed the minimum wage bill shortly after it was passed. Council members brought forward another measure to address driver pay, despite Frey saying he wouldn’t veto it. Then, on Thursday, the city council voted to override that mayoral veto.
The city council has done what should be done by government when it comes to fair labor and fair competition, according to a labor law professor at the University of California, Irvine School of Law. The companies are acting like children. Frankly, if they do leave, high road alternatives will take their place. It is possible to have both consumer convenience and good wages.”
Some areas already set a minimum wage for ridesharing and food delivery drivers. The minimum wage for drivers in New York City will go from $12 an hour to $18 an hour, while in Seattle it will go from $5 an hour to $7. In the United Kingdom, the ride-sharing service paid drivers a minimum wage.
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“This is a David and Goliath story,” Council Member Robin Wonsley, the lead author on the policy, said in a statement. The regular working-class people won the battle against the corporate giants.
Uber’s senior director of public affairs, Josh Gold, said “We are disappointed the Council chose to ignore the data and kick Uber out of the Twin Cities.”
The companies treat their drivers as independent contractors, which means drivers pay for their own work expenses, like car maintenance and gas. Drivers don’t get health insurance, sick pay or other employee benefits through the companies.
Labor advocates and Minneapolis ride-hail drivers say they should have the same opportunities to earn a living wage and the same rights as other workers.