Companies threatened to shut down operations over a court judgment ordering them to classify their own drivers as workers by 20 August
Uber and Lyft drivers are bracing for a shutdown in California, one of the rideshare companies' largest markets. For drivers it's a bittersweet moment. One that could not come at a worse time and yet holds the promise of a greater future.
The coronavirus pandemic has struck so-called gig market workers challenging and ramped up state and local attempts to classify Uber and Lyft drivers as employees rather than contractors, a movement that would improve minimal salary and benefits for motorists.
A spokesperson for Lyft affirmed in an email that when efforts to expand the stay on the arrangement after 20 August are unsuccessful, Lyft will shut down operations in California.
Since the row continues rideshare drivers around the US are struggling to make ends meet, either continuing to work or relying on unemployment benefits from state approaches that have struggled to keep up with backlogs and cover full benefits.
This is a row that entails real cash. A report conducted by the UC Berkeley Labor Center in May 2020 found Uber and Lyft could have paid 413m to California's unemployment benefits system when motorists were categorized as employees rather than independent contractors.
California and many nations throughout the US are now fighting to maintain funds for unemployment insurance capital as yearly unemployment claims stay around 1m per week.
Jerome Gage has driven Lyft in Los Angeles since 2015. When California shut down businesses in reaction to this Covid-19 pandemic in March, Gage continued driving and saw his earnings fall significantly; the firms have cited ridership declines of around 75% nationally on account of the coronavirus pandemic.
However Gage had no choice except to continue driving since as independent contractors they weren't originally eligible for unemployment benefits, the government has since agreed to pay rewards to gig workers. But as independent contractors Uber and Lyft drivers aren't supplied with health insurance or paid sick leave.
"I was making less than $4 an hour with no other choice but to keep driving," said Gage. "The country keeps saying they are awaiting wage information to verify my employment," additional Gage.
At the meantime, Gage has continued driving while paying for personal protective equipment (PPE) out of his pocket. He said Lyft did not start providing any PPE to motorists before June. Since then, Lyft was selling PPE to drivers on its own website.
Chris Arellano, a Lyft driver and organizer in San Francisco for eight years, waited four weeks before he began receiving unemployment benefits during the pandemic. He claimed the declining cover for motorists since he started driving 2012 has stalled coordinating attempts to push for drivers to be classified as workers in California and around the united states.
"In these early days we had been making $30 to $40 an hour, if that was the situation there would be no AB5, no groups like Rideshare Drivers United," said Arellano. "It took a lot of miscalculations over time and broken promises to get drivers this mad and inspired to join a group . But while you make half $30 to $40 an hour and need to cover expenses, you make this sort of atmosphere"
Gig businesses have lost several court decisions over the last few months in regards to if their employees are classified as independent contractors or employees.
Abroad, Uber has faced intense scrutiny within its business models, including halts to surgeries or bans ordered by local and national authorities. In Germany and Spain, Uber utilizes a franchise model where drivers have been classified as employees while still devoting flexibility in job advertisements.
Other litigation and suggestions have recently been created by elected officials, who cited the coronavirus pandemic as reason for taking action.
The Massachusetts attorney general, Maura Healey, filed a similar lawsuit in July, noting in response to a question on the timing of the litigation which the coronavirus pandemic has jeopardized the needs of rideshare workers.
About 13 August in Seattle, Washington, Mayor Jenny Durkan released a proposal to force Uber and Lyft to cover drivers at least the regional minimum wage of $16.36 an hour and reasonable costs, effective 1 January 2021. Durkan stated:"The pandemic has thrown into sharp relief the outcome of the developing gig work industries."
Uber and Lyft have opposed these activities and proposals as well, with enormous resources being used in reaction to avoid interfering with California's Assembly Bill 5. The rideshare businesses have spent at least $30m each on a campaign in support of voter amendment Proposition 22 to overturn the bill, which California voters will decide on this November. "Finally, they are being held to account in their home state of California, and they're turning to the very same tricks as standard: threatening to suspend funding and operations a hazardous ballot initiative to purchase their way out of the obligations."
Some Uber and Lyft drivers allege the companies are planning to shut down operations as a strategy to try to manipulate people in California to support Prop 22.
"This is just a game," said Sam Monro, a motorist for Uber and Lyft in San Diego because 2014. "They won't abandon California.
Monro contested the idea Uber and Lyft drivers are independent contractors, mentioning the absence of management drivers have more than per mile reduction pay rates he's experienced since he started driving in 2014, also Uber and Lyft regularly charge passengers surge rates when demand for rides is elevated, without passing on that compensation to motorists.
"They're spending millions of dollars to attempt to get rid of this legislation. We cover the car, all of the maintenance, and if anything else occurs. In 2018 I had a car crash. I didn't receive any assistance out of Uber and Lyft and that I had a passenger in the vehicle," additional Munro.
Tonje Ettesvoll, a motorist for Uber and Lyft for four years at San Diego, said it took five weeks to get her unemployment benefits to begin after submitting in March when her child's school shut down.
"They are threatening us to frighten drivers and make us feel empowered," said Ettesvoll. "If you have a business model that can't accommodate the individuals that are doing the assistance of the operation using a fair living wage, then you ought to have another business model.
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... joining us from India, we have a small favour to ask. Millions are flocking into the Guardian for good news daily. We believe everyone deserves access to factual information, and analysis that's authority and ethics. That is why, unlike many others, we made a choice: to keep Guardian reporting available for all, regardless of where they live or what they can afford to cover.
As an open, independent information business we explore, interrogate and expose the actions of those in power, without fear. With no shareholders or billionaire owner, our journalism is free of political and commercial prejudice -- that makes us distinct. We could provide a voice to the oppressed and neglected, and stand in solidarity with people who are calling for a fairer future. With your help we could really make a difference.
We are determined to give journalism which helps us better understand the world, and take actions that challenge, unite, and inspire shift -- in times of crisis and outside. Our work wouldn't be possible with no subscribers, who support our work out of 180 countries around the world.
Uber and Lyft drivers are bracing for a shutdown in California, one of the rideshare companies' largest markets. For drivers it's a bittersweet moment. One that could not come at a worse time and yet holds the promise of a greater future.
The coronavirus pandemic has struck so-called gig market workers challenging and ramped up state and local attempts to classify Uber and Lyft drivers as employees rather than contractors, a movement that would improve minimal salary and benefits for motorists.
A spokesperson for Lyft affirmed in an email that when efforts to expand the stay on the arrangement after 20 August are unsuccessful, Lyft will shut down operations in California.
Since the row continues rideshare drivers around the US are struggling to make ends meet, either continuing to work or relying on unemployment benefits from state approaches that have struggled to keep up with backlogs and cover full benefits.
This is a row that entails real cash. A report conducted by the UC Berkeley Labor Center in May 2020 found Uber and Lyft could have paid 413m to California's unemployment benefits system when motorists were categorized as employees rather than independent contractors.
California and many nations throughout the US are now fighting to maintain funds for unemployment insurance capital as yearly unemployment claims stay around 1m per week.
Jerome Gage has driven Lyft in Los Angeles since 2015. When California shut down businesses in reaction to this Covid-19 pandemic in March, Gage continued driving and saw his earnings fall significantly; the firms have cited ridership declines of around 75% nationally on account of the coronavirus pandemic.
However Gage had no choice except to continue driving since as independent contractors they weren't originally eligible for unemployment benefits, the government has since agreed to pay rewards to gig workers. But as independent contractors Uber and Lyft drivers aren't supplied with health insurance or paid sick leave.
"I was making less than $4 an hour with no other choice but to keep driving," said Gage. "The country keeps saying they are awaiting wage information to verify my employment," additional Gage.
At the meantime, Gage has continued driving while paying for personal protective equipment (PPE) out of his pocket. He said Lyft did not start providing any PPE to motorists before June. Since then, Lyft was selling PPE to drivers on its own website.
Chris Arellano, a Lyft driver and organizer in San Francisco for eight years, waited four weeks before he began receiving unemployment benefits during the pandemic. He claimed the declining cover for motorists since he started driving 2012 has stalled coordinating attempts to push for drivers to be classified as workers in California and around the united states.
"In these early days we had been making $30 to $40 an hour, if that was the situation there would be no AB5, no groups like Rideshare Drivers United," said Arellano. "It took a lot of miscalculations over time and broken promises to get drivers this mad and inspired to join a group . But while you make half $30 to $40 an hour and need to cover expenses, you make this sort of atmosphere"
Gig businesses have lost several court decisions over the last few months in regards to if their employees are classified as independent contractors or employees.
Abroad, Uber has faced intense scrutiny within its business models, including halts to surgeries or bans ordered by local and national authorities. In Germany and Spain, Uber utilizes a franchise model where drivers have been classified as employees while still devoting flexibility in job advertisements.
Other litigation and suggestions have recently been created by elected officials, who cited the coronavirus pandemic as reason for taking action.
The Massachusetts attorney general, Maura Healey, filed a similar lawsuit in July, noting in response to a question on the timing of the litigation which the coronavirus pandemic has jeopardized the needs of rideshare workers.
About 13 August in Seattle, Washington, Mayor Jenny Durkan released a proposal to force Uber and Lyft to cover drivers at least the regional minimum wage of $16.36 an hour and reasonable costs, effective 1 January 2021. Durkan stated:"The pandemic has thrown into sharp relief the outcome of the developing gig work industries."
Uber and Lyft have opposed these activities and proposals as well, with enormous resources being used in reaction to avoid interfering with California's Assembly Bill 5. The rideshare businesses have spent at least $30m each on a campaign in support of voter amendment Proposition 22 to overturn the bill, which California voters will decide on this November. "Finally, they are being held to account in their home state of California, and they're turning to the very same tricks as standard: threatening to suspend funding and operations a hazardous ballot initiative to purchase their way out of the obligations."
Some Uber and Lyft drivers allege the companies are planning to shut down operations as a strategy to try to manipulate people in California to support Prop 22.
"This is just a game," said Sam Monro, a motorist for Uber and Lyft in San Diego because 2014. "They won't abandon California.
Monro contested the idea Uber and Lyft drivers are independent contractors, mentioning the absence of management drivers have more than per mile reduction pay rates he's experienced since he started driving in 2014, also Uber and Lyft regularly charge passengers surge rates when demand for rides is elevated, without passing on that compensation to motorists.
"They're spending millions of dollars to attempt to get rid of this legislation. We cover the car, all of the maintenance, and if anything else occurs. In 2018 I had a car crash. I didn't receive any assistance out of Uber and Lyft and that I had a passenger in the vehicle," additional Munro.
Tonje Ettesvoll, a motorist for Uber and Lyft for four years at San Diego, said it took five weeks to get her unemployment benefits to begin after submitting in March when her child's school shut down.
"They are threatening us to frighten drivers and make us feel empowered," said Ettesvoll. "If you have a business model that can't accommodate the individuals that are doing the assistance of the operation using a fair living wage, then you ought to have another business model.
As you're here...
... joining us from India, we have a small favour to ask. Millions are flocking into the Guardian for good news daily. We believe everyone deserves access to factual information, and analysis that's authority and ethics. That is why, unlike many others, we made a choice: to keep Guardian reporting available for all, regardless of where they live or what they can afford to cover.
As an open, independent information business we explore, interrogate and expose the actions of those in power, without fear. With no shareholders or billionaire owner, our journalism is free of political and commercial prejudice -- that makes us distinct. We could provide a voice to the oppressed and neglected, and stand in solidarity with people who are calling for a fairer future. With your help we could really make a difference.
We are determined to give journalism which helps us better understand the world, and take actions that challenge, unite, and inspire shift -- in times of crisis and outside. Our work wouldn't be possible with no subscribers, who support our work out of 180 countries around the world.