One particular group of New York City’s essential workers is about to receive a pay bump at last. Mayor Eric Adams has announced a 5.3 per cent raise for drivers of high-volume, for-hire vehicle services including those who work for Uber and Lyft, Entrepreneur.com reports.
The order from the Taxi and Limousine Commission (TLC) will go into effect on March 1 and impact an estimated 90,000 drivers. It will increase the minimum driver pay rates to $1.161 per mile and $0.529 per minute.
In 2018 New York became the first city in the country to implement a minimum pay rate for Uber and Lyft drivers. Ride-hailing companies were required to begin paying drivers approximately $17.22 per hour after expenses; about $5 per hour more than they'd received previously.
In a statement posted to the city's official website, Mayor Adams acknowledged that the city's drivers have put themselves at risk to provide an essential service during the pandemic and deserve to be compensated accordingly.
“Drivers have served on the frontlines and have been there for their neighbours - driving them around the city and delivering food to those in need. This is about respect and paying each one of these individuals a fair and decent wage," the mayor said.
New York City ride-hail drivers have fought for the right to unionise for the past several years, it would enable them to bargain for improved pay and workplace benefits. But despite numerous protests, a union has yet to be formed.
Bhairavi Desai is the executive director of the New York Taxi Workers Alliance - a group that represents ride-hail and taxi drivers in the city - she noted that state regulations surrounding ride-hail services disproportionately affect some of the city's most vulnerable populations.
"[Uber, Lyft, and Via drivers] are the anchor in many neighbourhoods and are majority immigrants of colour working to transition out of poverty," Ms Desai said in a statement. "We all know the price of basic needs, like bread and milk, have gone up, and, for drivers, so have operating costs, like fuel and repairs. This 5.3 per cent raise will help thousands of families find security and give many the chance to live under better conditions."
Uber and Lyft, however, both have a history of pushing back against pay regulations, according to Vox reporting, the rideshare giants claim they make journeys more expensive for customers and limit business competition.
Both companies are also currently fighting to maintain their drivers' classification as "independent contractors" in Massachusetts and California. Independent contractors are not legally entitled to minimum wage, overtime and other benefits. In addition, Lyft and Uber are appealing a judge's ruling that a California ballot measure classifying ride-hailing drivers as contractors was unconstitutional.
Source: Entrepreneur.com
(Links and quotes via original reporting)
One particular group of New York City’s essential workers is about to receive a pay bump at last. Mayor Eric Adams has announced a 5.3 per cent raise for drivers of high-volume, for-hire vehicle services including those who work for Uber and Lyft, Entrepreneur.com reports.
The order from the Taxi and Limousine Commission (TLC) will go into effect on March 1 and impact an estimated 90,000 drivers. It will increase the minimum driver pay rates to $1.161 per mile and $0.529 per minute.
In 2018 New York became the first city in the country to implement a minimum pay rate for Uber and Lyft drivers. Ride-hailing companies were required to begin paying drivers approximately $17.22 per hour after expenses; about $5 per hour more than they'd received previously.
In a statement posted to the city's official website, Mayor Adams acknowledged that the city's drivers have put themselves at risk to provide an essential service during the pandemic and deserve to be compensated accordingly.
“Drivers have served on the frontlines and have been there for their neighbours - driving them around the city and delivering food to those in need. This is about respect and paying each one of these individuals a fair and decent wage," the mayor said.
New York City ride-hail drivers have fought for the right to unionise for the past several years, it would enable them to bargain for improved pay and workplace benefits. But despite numerous protests, a union has yet to be formed.
Bhairavi Desai is the executive director of the New York Taxi Workers Alliance - a group that represents ride-hail and taxi drivers in the city - she noted that state regulations surrounding ride-hail services disproportionately affect some of the city's most vulnerable populations.
"[Uber, Lyft, and Via drivers] are the anchor in many neighbourhoods and are majority immigrants of colour working to transition out of poverty," Ms Desai said in a statement. "We all know the price of basic needs, like bread and milk, have gone up, and, for drivers, so have operating costs, like fuel and repairs. This 5.3 per cent raise will help thousands of families find security and give many the chance to live under better conditions."
Uber and Lyft, however, both have a history of pushing back against pay regulations, according to Vox reporting, the rideshare giants claim they make journeys more expensive for customers and limit business competition.
Both companies are also currently fighting to maintain their drivers' classification as "independent contractors" in Massachusetts and California. Independent contractors are not legally entitled to minimum wage, overtime and other benefits. In addition, Lyft and Uber are appealing a judge's ruling that a California ballot measure classifying ride-hailing drivers as contractors was unconstitutional.
Source: Entrepreneur.com
(Links and quotes via original reporting)