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USA: Uber & Lyft's proposed alternative to bill ensuring worker protections criticised for not 'adding up’

Author: Faiz Siddiqui, The Washington Post, Published on: 2 September 2019

"Uber and Lyft are floating a $21 minimum wage. Critics say it’s closer to $15.", 30 August 2019

Uber and Lyft are floating a new proposal to pay drivers a $21 minimum wage. It may not add up. The ride-hailing giants are floating the new wage and benefits as the California State Senate is set to vote on a bill that could convert contracted workers into employees...

...To convince legislators, and drivers, that the move is unnecessary, Uber and Lyft have proposed a $21 hourly “on-trip” minimum wage. Workers also would have access to “portable benefits,” such as sick leave and workers’ compensation. Uber and Lyft have asked drivers to lobby for an alternative.

Those who study ride hailing say the wage proposed by the companies would amount to about $15 at most, because it excludes the time it takes for drivers to return from a drop-off and wait for another trip. Drivers typically spend about 30 to 40 percent of their time without a passenger, and roughly 10 percent is spent driving to pick up a passenger, according to studies. The pick-up period would be compensated...

...Uber argued that data shows its new minimum hourly wage would apply to just below 75 percent of the miles driven by its contractors...

Read the full post here