Tag Archives: Uber

The Predatory Fight to Keep Workers Temporary and “Independent”

Little Rock      Once upon a time we might have been able to look at the Department of Labor to lead the way in drawing the bright lines that establish whether a worker is an employee or an independent contractor, regular or temporary.  If that didn’t work, perhaps there might be some way to look at cases before the National Labor Relations Board that were forced to decide whether a worker was regular enough to vote and be part of a bargaining unit or temporary, casual, and out of luck.  Those were the “good” old days.  You know the 1900s.  The twentieth century.  Now, if you want to try and figure this out, especially given the predatory and pernicious way that app-based companies have hired hundreds of thousands of workers and pretended they are all free as birds, you have keep your eye on California, where legislators, regulators, and the public understand how critical this issue is.

California legislators, after years of struggle with the issue, decided once and for all, that gig workers, not just with the giant predators Uber and Lyft, but across the board, were employees, not independent subcontractors.  In California, as opposed to say, Arkansas or Louisiana or most of the lower forty-right, that actually means something.  A worker has some rights.  Higher minimum wage and paid sick days are a good examples, but that’s just where it starts.  The California Labor Code is extensive and gets over the walls and into the workplace and up in a boss’s face with a long list of “do rights.”

Uber, Lyft, Door Dash, and a gazillion others want to pretend they are tech companies and simply a computerized algorithm application that is linking a customer with some Joe or Jane out in the wild blue who wants to provide a service.  Of course, they want you to overlook the fact that they interview and qualify you, insist on what age and condition your vehicle is, set the rates you can charge, and on and on.  In labor unions, we would say that they set the hours, wages, and terms and conditions of employment.  The only thing they arguably don’t do is set the hours.

These companies aren’t happy with the California law.  They tried to make a deal.  They would agree to talk with their workers.  They would do a little of this and that, but, please, Mr. Golden Bear, don’t say the “e” word and make our workers officially “employees” of our companies.  The reason is clear.  Their business model is based on exploiting their workers and not paying minimum wages, social security, medical benefits, or of course any of the costs associated with the worker’s tools, meaning their car, its gas, and condition or the bicycle, scooter or whatever.  They now have raised a $100 million in hopes the voters of California will let them go back to rip-off the workers world.  That’s a long shot, if I were betting.  Californians are the France of America.  They like their benefits.  Who wouldn’t?

Listening to the radio on the road the other day, the absurdity became clear as I listened to one of the companies claim they were going to make a change in their app that would make their drivers more independent.  They were going to let them know if they picked up a fare on Uber how far they would have to go, so they could take it or pass.  My first thought was holy-moly, you mean a driver was clueless before on whether or not the fare was around the corner or miles away.  Sure enough, a driver was interviewed who talked about having landed a fare from Los Angeles to Bakersfield more than a hundred miles away.  He made money going, but then was out of luck on the way back.

A couple of tweaks are not going to change the story out there.  When you’re working for the man, you’re working for the man, whether you can see him through your app or not.  If the company controls the terms and conditions of employment, you’re an employee and entitled to the pluses or pitfalls that come with it.  Period.

Facebooktwitterredditpinterestlinkedinmail

Is the Gig Up or Down?

New Orleans      With statistical unemployment below 4% for the first time in years, economists, policy makers, politicians, and self-interested hucksters have found something new to throw statistics at each other backwards and forwards:  is the gig economy growing or slowing?  At many levels one might say it depends on who you ask.  At another level one has to worry about why it matters to the drum beaters.

So, just to review the field of battle for a minute.  The respected Economic Policy Institute in Washington weighed in recently that the gig economy was so marginal it was basically only worth a side room in an academic convention amounting to less than 1% of the jobs in the economy.  The federal Bureau of Labor Statistics trying to update its figures put the number higher than that but way less than double figures and cast doubt on whether the level of such employment was rising or falling.  Others argued that the BLS statistics were an undercount citing the almost 70% of Uber drivers who are not counted by BLS because they have payroll jobs, and Uber is their side gig, so to speak.  Gig promoters claim that more than one-third of the USA labor force is involved in some form of contract or freelance work.  No one disputes the fact that contingent, subcontract and temporary labor is huge, but sorting it out is guaranteed a migraine.

Let’s look at why it matters, big or small.

There’s a continuing push by the giggers to get changes in labor law protections, and that’s not good news for anyone but the giggers themselves who are trying to compete with more established employers in the same industries by sweating the labor of their workers.  Not having to pay social security, unemployment, health benefits and the rest of the package and instead pushing the costs over to the workers themselves saves a ton of money, if you are allowed to get away with it.  The whole point of Uber-kind businesses is in fact to get away with it, which is why they continue to fight here and abroad against any finding that they are responsible for their workforce and not simply an internet application.

It also matters when the bean counters determine how big the number is of fulltime gig workers, because these are workers who represent a long-term time bomb on society if they lack sufficient Social Security benefits to support themselves when they outlive their gigs.  A significant change in the composition of the workforce creates a burden that companies want to shed by passing their responsibility over to the rest of us.

Some good news came from an unexpected front in a southern California ruling against the Cheesecake Factory restaurant chain when they were hit along with their janitorial subcontractor for over $4 million on wage theft claims because workers were denied breaks and forced to work unpaid overtime hours before being released from the shift by Cheesecake managers.  Having employing companies held responsible for subcontractor violations could set precedents that protect contingent and temporary workers as well as gig workers.

We need a lot more victories along the Cheesecake lines because whether the number is huge or small we need to force these kinds of business in another direction where protection of workers’ rights and benefits is still part of the business model.

***

Please enjoy Fionn’s Magazine Face.

Thanks to KABF.

Facebooktwitterredditpinterestlinkedinmail