In this issue, you can read about:
Why burritos are worth their weight in gold in Seattle - and why riders fear the same will happen in New York City
Heat waves, dropping tips, and "dangerous" app features: top issues recently raised by gig workers worldwide
Why Cyprus made the headlines in the delivery sector
A Burrito Worth Its Weight In Gold: Why Passing Minimum Pay Legislation for Gig Workers Isn't Easy - The Seattle and NYC Cases
MINIMUM PAY RATE FOR GIG WORKERS IN SEATTLE AND NEW YORK CITY: HOW IS IT CALCULATED?
Seattle's App-Based Worker Minimum Payment Ordinance recognises the gig workers' right to a minimum pay based on time worked. "Companies must pay at least 44 cents per minute, plus 74 cents per mile during orders, or a minimum of 5 dollars per order."
For New York City, the Department of Consumer and Worker Protection (DCWP) requires apps that pay for all the time a delivery worker is connected to the app (i.e., time spent waiting for ride offers and ride time) to pay a minimum of 17.96 dollars per hour (approximately 30 cents per minute), not including tips. Apps that only pay for trip time (i.e. the time from accepting a ride offer to dropping off the delivery) must pay a minimum of approximately 50 cents per minute of trip time, not including tips.
Skyrocketing prices and minimum pay for gig workers in Seattle and New York City
“I get like 1 order a day”. “I drove 3 hours at dinner tonight and made $50”. “If you're online for 10 hours, don't expect to work for more than 45 minutes”. Uber Eats delivery workers in Seattle expressed concerns about their earnings after the city council mandated higher pay in January 2024.
In response, delivery companies have raised their fees, leading to higher prices deterring customers from ordering.
For their part, gig workers in Seattle report earning higher hourly pay but fewer tips and reduced demand, prompting the city to consider reversing the law.
Meanwhile in New York…
Similarly, New York City passed an ordinance in December 2023 requiring a minimum pay of $17.96 per hour for delivery workers, a significant increase from the 2022 average earnings of $14.18 per hour with tips and $7.09 without.
Despite union opposition, New York declared its new pay rate a success. However, a July report by the Department of Consumer and Worker Protection found that while the average hourly pay has increased by 56%, the average tip per hour has decreased by 47%.
… and elsewhere in the US and beyond
Meanwhile, Uber and Lyft will adopt a $32.50 minimum hourly pay standard in Massachusetts starting August 15, plus benefits. Waiting time won't be paid, however, and drivers fear it could increase competition, so the pay rise may not be as significant as many think.
But the same issues exist in different countries: Uber Australia has told drivers that fares will be lowered starting Aug. 7, and in Canada they predicted a surge in costs for residents due to British Columbia's new gig-worker regulations.
More on Regulation: Taxes and cost of living, a closer look at Brazil
If the tax reform proposed by the Chamber of Commerce Working Group is approved, app drivers will keep only 13 to 33 reais of every 100 reais earned, after costs and new taxes.
According to WageIndicator data, work-related costs for Brazilian gig workers have risen since last year, particularly for laptops, car insurance, and bicycles.
Recent Gig Worker Issues Raised Around The World: Heat Waves, Dropping Tips, And "Dangerous" App Features
Australia: Theguardian.com France: Francebleu.fr Malta: TimesofMalta; Netherlands (the): IIedereeneenvastcontract (IG); New York: FastCompany; Seattle: Wsj.com
Months of Protests at a Glance 🌍
Over the past three months, we've been tracking the top issues that gig workers around the world are raising and creating maps of them.
Check out our maps to see what they were protesting and where!
Airport Protests, Automatic Account Suspensions, and City Regulations: The April Edition
Repeat Robbery, Proposition 22, and Focus on Poor Pay: The May Edition
Shifts in peak demand, Heat Waves, and Gamification: June Key Issues
Worker Issues July Edition (1): Heatwaves, Deactivations, and... Elevator Problems
Solution to the quiz: a) First collective agreement in the sector
The Cypriot Ministry of Labour and the unions have reached a tentative two-year collective agreement for the delivery sector after negotiations.
The agreement requires platforms to provide helmets, vehicles, and fuel, but there are criticisms:
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The minimum wage, though higher than the national minimum, is less than 6 euros per hour for a 40-hour week.
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Drivers may not reach six months of continuous employment due to job nature and dismissal loopholes.
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There's no clarity on enforcing the 40-hour workweek or defining ‘work.’ (Is waiting time between orders 'work time'?)
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Enforcement relies on drivers' compliance, but most want to work and earn more. A higher minimum wage and generous overtime provisions could be solutions.
FOR DETAILS, SEE THE MIND MAP BELOW:
A Burrito Worth Its Weight In Gold: Why Passing Minimum Pay Legislation for Gig Workers Isn't Easy - The Seattle and NYC Cases