Uber Lawsuit Blocks Pay Raise For NYC Drivers

14 Dec 2022
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Uber Lawsuit Blocks Pay Raise For NYC Drivers

 In Scrooge Move — Rideshare Giant Blocks Desperately Needed Increase that Was Supposed to Begin December 19th

New York, NY— Despite record profits, rideshare giant Uber sued to block a desperately- needed increase to the minimum driver pay rate in New York City. Uber petitioned the courts to halt the pay increase, slated to go into effect next week. 

Last night, the court granted Uber’s request for a temporary restraining order, leaving the city’s 80,000 Uber drivers in the lurch right before the holidays. 

While Uber has recorded record profits from its rideshare business, the rideshare drivers who work on the platform have been struggling to make ends meet amid soaring expenses. The increase to the minimum pay rate, approved by the NYC Taxi and Limousine Commission, is a necessary adjustment to ensure drivers are paid no less than the equivalent of New York City’s minimum wage after expenses ($17.22 per hour, the independent contractor equivalent of the $15 per hour minimum wage). By fighting this increase, Uber is actually fighting to CUT driver pay to BELOW MINIMUM WAGE.

“This is a nasty stunt for Uber to pull on its drivers— especially right before the holidays. Even this would make Scrooge blush,” said Brendan Sexton, President of the Independent Drivers Guild. “While Uber has been recording record profits on its rideshare business, the drivers who make the service workers have been stuck shouldering soaring expenses on their own. We fought hard to win this desperately needed increase to the minimum pay — and we will not let a billion-dollar corporation snatch that victory from the 80,000 rideshare drivers who keep our city moving.”

“Like everyone else, our costs have soared the past few years.  It has been one hit after another. First, the pandemic destroyed our livelihood while we still had car payments, insurance, and rent to pay. Then gas prices and expenses soared. Thousands of families like mine were depending on this raise to finally break even. Now I don’t know what we will do,” said IDG Member Arifa Tirmizi, who has driven for Uber for six years to support her family, including her seven children.

The Independent Drivers Guild is a Machinists Union affiliate that represents and advocates for more than 250,000 drivers across NY, NJ, CT, MA, and IL. We are Uber and Lyft workers united for a fair industry. The Guild’s organizing has secured landmark victories that put billions of dollars in the pockets of drivers, including requiring a tipping option in the Uber app and winning the nation’s first minimum wage (after expenses) for rideshare drivers in New York City.
 

 MEDIA CONTACT: Moira@drivingguild.org

IDG PR from November 15, 2022
https://ny.driversguild.org/rideshare-drivers-win-desperately-needed-pay-raise-in-nyc/

Rideshare Drivers Win Desperately Needed Pay Raise in NYC

The Independent Drivers Guild Thanks City Leaders for Listening to Drivers

New York, New York – New York’s Uber and Lyft drivers will soon be receiving a much needed pay raise. The Independent Drivers Guild, which represents the city’s 80,000 Uber and Lyft drivers, urged the city to raise the minimum pay rates in the face of soaring expenses and gas prices the last two years. Today, the city’s Taxi and Limousine Commission voted to approve the increase to minimum driver pay, raising per minute pay by 7.42 percent and per mile pay (which reflects per mile expenses) by 23.93 percent. (See TLC slides below)

“Gas prices and expenses have soared the last two years, and rideshare drivers are struggling to make ends meet. This increase to the minimum pay is critical and an important step to protect the 80,000 rideshare drivers who keep our city moving. We want to thank the Taxi and Limousine Commission staff, Commissioner Do and the Adams Administration for listening to drivers and taking action,” said Brendan Sexton, President of the Independent Drivers Guild. 

In a hearing last month, the Independent Drivers Guild shared the results of a survey of more than 1,100 Uber and Lyft drivers. The Guild found that nine in ten drivers have trouble paying their monthly bills. Other findings include:

  • Over 90 percent of drivers say that Uber and Lyft don’t pay them enough to survive.
  • Nearly 80 percent of drivers have trouble paying their rent or mortgage.
  • Two-thirds of drivers have trouble making car payments, paying credit card bills, and affording vehicle insurance.
  • Over 50 percent of drivers struggle to afford food.
  • Nearly 75 percent of drivers have children to support with their earnings.

The Guild also applauded the city for adopting the Guild’s recommendation to set an industry-wide rate, removing the financial incentive for rideshare app companies to manipulate driver access to the app and lock drivers out of the app in order to reduce driver pay.

The Independent Drivers Guild is a Machinists Union affiliate that represents and advocates for more than 250,000 drivers across NY, NJ, CT, MA, and IL. We are Uber and Lyft workers united for a fair industry. The Guild’s organizing has secured landmark victories that put billions of dollars in the pockets of drivers, including requiring a tipping option in the Uber app and winning the nation’s first minimum wage (after expenses) for rideshare drivers in New York City.

Contact: Moira@DrivingGuild.org


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