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Treat Uber bands like they do in the UK, but here’s another story

A fun new world.

Uber CEO Dara Khosroshahi earned $ 12.2 million in compensation last year. Khosrovshahi resigned from his base salary after the company was forced to cut 25% of its employees, or 6,000 people, due to demand for the epidemic. Even then, the CEO-employee ratio was 123: 1.

So far no one was able to send in the perfect solution, which is not strange.

But Uber also has about 1 million drivers in the United States, 3 to 4 million people worldwide. They are the backbone of the company’s revenue. But they are not considered workers. They are so-called band workers, independent contractors, earning about $ 9 an hour after spending. They are also not calculated at a ratio of 1 to 123.

It is not surprising that in 2020, Seattle set a minimum wage of $ 16.39 for drivers such as Lyft և Uber. New York City did the same. (A 2015 decree allowing drivers to unite has faced years of legal challenges, forcing the city council to water it down.)

The band’s giants returned immediately, winning a landslide victory in California with an offer that canceled out groups that classified the band as employees. They spent $ 200 million to persuade voters. Companies are now hoping to transfer that success to other states.

That is another story in the United Kingdom, where Uber simply agreed to classify its 70,000 drivers as employees who will receive the minimum wage, vacation pay and pension plan entitlements. It came after a court ruled that Uber drivers had more protection. The EU is also considering similar measures.

The victory of Great Britain for the workers is a difficult time to jump into the pond.

Biden’s Department of Labor plans to repeal Trump administration rule, which makes it easier to classify workers as constructors But companies that depend on construction contractors plan to fight it.

“Uber և Lyft have shown that they will go to the carpet to pay millions of dollars to have their employees classified as independent contractors,” Caroline Bruckner, a professor of tax policy at American University, told Bloomberg.

It is estimated that the bands’ business costs would increase by 40% if they were required to treat contractors as employees.

This fun new world is going to be like the old fabric world where workers had little benefit or protection.

Although companies like Uber claim that their drivers voluntarily take on these bands for flexibility and independence, we are seeing a significant increase in low-wage Americans having no access to company health insurance or 401 (k) sec. և inconsolable. In case of future retirement. if they ever retire.

With the rise of inequality in the digital age, there is a big divide between those who have a real job and all the benefits that come with them և those who have bands. Although many of them are skilled tech consultants or people who prefer to earn some money to drive a side car, many prefer real employment but are stuck in speeches.

Milken Institute Review 2020 The article, which was almost non-existent on the left, found that the orchestra’s economy exacerbated inequality and was more severe on racially discriminated racial groups.

These very valuable companies also force the normal salary costs to be borne by the taxpayers. For example, during the epidemic, tens of thousands of Uber և Lyft drivers received $ 80 million in assistance even when companies avoided paying for unemployment insurance.

The Uber announcement of independent entrepreneur drivers does not pass the olfactory test either. The 2019 report of the Labor-Supported Institute for Economic Policy points out the many ways in which the company is strictly controlled.

For example, drivers can not control prices or expand their customer base. They can only drive more hours. The entry states: “Uber drivers are ‘controlled’ by semi-automated algorithmic systems, which track their acceptance rates, route times, speeds, customer ratings and other factors. Drivers can be ‘disconnected’ from those factors.” »

The problem is much more than floating companies.

Federal Reserve Household և Decision Making (SHED) 2019 The study found that three out of every 10 adults in the United States perform in a particular band at least once a month prior to the survey. It ranged from personal services to renting property to selling goods online.

It is not limited to application-based companies. The most common speeches were the care of children, the elderly, cleanliness, and the maintenance of property. A Boston Fed study found that only one in 10 gig employees did what is called “internet-based work.”

The band’s workforce is growing. Corporations and shareholders make huge profits from band members, many of whom have no other choice. And the companies showed a strong political force. If orchestra-based companies can withdraw legal protection from workers in blue California, where can they be stopped?

It took decades for the gilded era to reach its peak in the 1890s to see the rise of the Progressive Movement, and finally the New Deal, the triumph of the unions, to secure a wider middle class and secure jobs.

Then the progressives were Republicans (Theodore Roosevelt) and Democrats (Woodrow Wilson, FDR).

Now, in a country so closely divided and polarized, such progress depends on the fact that only Democrats depend on Congress for their nails.

Then the bands were what the musicians played.

Now the band is a lifeline, a song of despair for many.

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