Posts tagged gig work
Commentary: Plan B is Activated
November 19, 2024 // They are now turning to Plan B, which is sectoral organizing. And they notched a big win in the recent election with a ballot proposition in Massachusetts—a win that the mainstream media is heralding as a good thing. In fact, the same pro-union media bias that we saw with reclassification attempts such as Assembly Bill 5 and the PRO Act is simply resetting and restarting anew. Now, it’s being used to promote this other way of trying to limit self-employment.
Massachusetts Ballot Measure Would Shove Rideshare Workers Into the Arms of Unions
October 12, 2024 // Even as independent contractors, however, unions still threaten drivers’ flexibility. Unions might negotiate standardized rates, mandatory breaks, or limits on working hours, which, while beneficial in some industries, could restrict a driver’s ability to capitalize on peak demand periods or adjust their work hours to fit personal schedule. The risk of such changes only magnifies when one considers that the Ballot Measure only requires a 25% vote from drivers to form a union that would represent them as a whole. This means that the 30% of drivers working full-time, who would benefit most from being treated like employees, might be able to dictate policy for all rideshare drivers.
OPINION Why don’t unions have to stand for reelection?
September 16, 2024 // The federal Bureau of Labor Statistics reports that 7.4 million workers in the private sector belonged to labor unions in 2023. Yet according to a new study from the Institute for the American Worker, which promotes market-oriented labor reform, fewer than 400,000 of those unionized employees — about 5 percent — have ever voted in an election for the union that represents them. Like me, the vast majority of employees in unionized workplaces were hired after the union had already been voted in. Most unions have never been required to confirm that they have the support of current workers by winning a recertification election. In some workplaces, a lifetime has elapsed — that isn’t hyperbole — since the union was first certified. The United Auto Workers organized General Motors’ Michigan plants in 1937 and has represented the employees who work there ever since. Never once has it had to stand for reelection. What kind of “workplace democracy” is that?
Commentary: Kamala Harris Is Bad News for Gig Workers
August 8, 2024 // Though framed as an overdue deliverance for besieged workers, AB 5 was a gift to labor bosses who dreamed of organizing California gig workers, especially ride-share drivers, and who lusted after the potential dues they could rake in. It was also one of the most-detested laws passed in California in memory. There was no grassroots movement behind AB 5, no uprising among freelancers. It was a top-down scheme fueled by union agitation and then, like so many other lousy public policies hatched in California, unleashed across the country. AB 5’s impact was immediate — and ugly. Workers’ opportunities were narrowed. Many lost their incomes. Businesses faced higher labor costs, and entrepreneurs felt the chill of the dead hand of activist policy-making. The promise of the gig economy, expected to expand globally by roughly 123 percent over the next five years, turned bleak in California. With their businesses in the balance, Uber, Lyft, and DoorDash generously funded a ballot initiative, Proposition 22, that would classify “drivers for app-based transportation (rideshare) and delivery companies as ‘independent contractors,’ not ‘employees.’” Voters approved it overwhelmingly. App-based drivers favored Prop. 22 — four out of five said they were “happy” that it passed, 76 percent said it “benefits me personally,” and 75 percent recommended that lawmakers pass “similar laws in other states so drivers across the country can benefit.”
Side Hustles in Focus as Gig Worker Laws Stir Uncertainty
May 1, 2024 // In the debate over the classification of gig workers, Massachusetts finds itself at the center of a legislative whirlwind, echoing a lengthy battle around California’s AB5 Gig-worker law. Proposals to reclassify Uber and Lyft drivers as employees rather than independent contractors have sparked heated discussions about labor rights and the unintended consequences of regulatory measures.
Seattle’s new minimum wage rule undermining delivery drivers
April 25, 2024 // It’s not just restaurant owners who are being squeezed. So are drivers. Drive Forward Seattle, an app-based driver advocacy group, recently surveyed its members on the impact of the rule. A DoorDash driver identified as Marvin said, “I went from making $300 a day during the weekends to making $80 a day and that’s on a good day. It takes over 2hr to even get one order.” A driver named Sally told the advocacy group, “90 percent of the customers don’t tip since the app changed. So, they have to go back onto the app after the delivery, if they even remember to do so, in order to tip. That’s a big thumbs down.” The pushback has been so strong that the Seattle City Council has mulled repealing the rule altogether. Unions, who have struggled to organize the delivery drivers, have pushed back against the potential repeal, arguing that the wage system is working as intended.
New Law Redefines Employees and Contractors
March 7, 2024 // Data suggest worker misclassification may be the exception rather than the rule in many industries. Surveys consistently show that most independent contractors prefer their independence. Around 79% of them prefer their arrangement over a traditional job, according to the U.S. Bureau of Labor Statistics, while fewer than one in 10 contractors want a traditional work arrangement. "Since a lot of older Americans do seek out these flexible forms of work as they near retirement — or after — this rule will likely lead to reduced work opportunities for them." Implemented in 2020 when acting U.S. Labor Secretary Su was California's labor commissioner, California's Assembly Bill 5, or AB5, similarly set out to protect workers by getting more people on the payrolls. But many Californians working as legitimate contractors suddenly lost income after businesses and nonprofits stopped working with them as freelancers and didn't hire them as employees.
Collateral Damage in the War on ‘Gig Work’
February 12, 2024 // A new Department of Labor rule regarding independent contractors is likely to hurt overall employment.
California’s Attack on Gig Work Predictably Drove Workers Out of Jobs
January 19, 2024 // Last week, the DOL announced a new set of rules for determining whether a worker is an employee or an independent contractor. Like with California's A.B. 5, those proposed federal rules are meant to crack down on what the government sees as a deliberate effort to misclassify workers as contractors—which can change, among other things, the benefits that an employer is obligated to pay. Most gig workers and independent contractors are content with their more flexible, less structured employment arrangements—so in some sense, these governmental efforts seem to be trying to save workers from their own choices.
Are Unionized Gig Workers The Future Of Work?
June 2, 2023 // Additionally, some unions—because of a lack of resources—aren’t able to take the most direct approach to helping gig workers. “Unfortunately, right now there are some unions that have taken a ‘strategic’ approach of trying to work with the companies and become their labor partners,” says Dryburgh. “In May 2021, they tried getting a law passed in NYC that would provide Independent Drivers Guild and Transport Workers Unions fees for representing workers that would come from fares and delivery fees. The problem with these laws is that while they provide immediate benefits to workers, they create these carveouts that prevent app-based workers from being classified as employees. These kinds of deals can have irreparable consequences for the rest of the labor movement. If the new standard of whether you are an employee depends if you get your job through an app, all W2 employees are in trouble.”