Grocery chains nationwide ditching in-house delivery drivers in wake of Prop 22

From today’s Business Insider:

Albertsons and some of its subsidiaries, including Vons and Pavilions, are discontinuing their in-house delivery services in parts of California and other states starting in February. The grocery chains will instead rely more heavily on third-party delivery apps, including DoorDash, to handle grocery deliveries, local news outlet KNOCK reported Monday.

“In early December, Albertsons Companies made the strategic decision to discontinue using our own home delivery fleet of trucks in select locations, including Southern California, beginning February 27, 2021,” Albertsons spokesperson Andrew Whelan told Business Insider.

“We will transition that portion of our eCommerce operations to third-party logistics providers who specialize in that service. Our HR teams are working to place impacted associates in stores, plants, and distribution centers,” Whelan said.

Albertsons didn’t respond to questions about employees losing their jobs. In Texas, the company told the Dallas Morning News that it will also fire nearly 100 employees at Tom Thumb locations.

“With COVID-19 outbreaks spiraling out of control and overwhelming hospitals across California, it is stunning that Albertsons would fire these courageous and hard-working men and women keeping our food supply secure,” Marc Perrone, international president of United Food and Commercial Workers, a major union that represents many Albertsons workers, said in a press release, calling on Albertsons “to immediately halt these plans.”

The move comes weeks after a new California law went into effect that eliminated labor protections for app-based food delivery workers and rideshare drivers, which was authored and bankrolled by gig companies.

As DoorDash, Uber, Lyft, Instacart, and Postmates waged a $200 million battle last year to pass the bill, known as Proposition 22, they pointed to “independent” research claiming it would save as many as 900,000 jobs across the state (it turned out the companies had paid a combined $411,599 to the researchers behind the study).

Albertsons’ plans to cut in-house delivery and route new business to delivery companies like DoorDash, however, shows how Prop 22’s passage potentially pushes adjacent industries to consider cheaper labor options.

Read the complete article here.

Unfair ratings cost some Instacart shoppers hundreds a week

From today’s New York Times:

Bags of groceries don’t just vanish into thin air. But in case the laws of physics ceased to exist, Loreen Zahara does her due diligence. The Instacart shopper keeps receipts for purchases and even photographs them upon delivery — on a customer’s stoop or in front of their garage.

Yet when one customer gave her a one-star rating over a missing bag of pineapples and another awarded her one star and claimed an entire order wasn’t delivered, it was Zahara who suffered the consequences: a loss of hundreds of dollars of potential earnings per week.

Instacart’s order-allocation system takes the “customer is always right” mantra to new extremes, some of its professional shoppers say. The grocery delivery company presents its workforce of independent contractors with orders based in part on their in-app ratings — those with higher scores get first pick, often leaving behind fewer and less lucrative batches for everyone else. Interviews with more than 10 shoppers and receipts reviewed by The Times show a sharp decline in earnings for shoppers whose ratings drop just slightly below 4.95 out of 5 stars. Often, shoppers said, the negative reviews were beyond workers’ control.

Even though Zahara has evidence those two complete orders reached the customers’ homes, it was enough to drop her rating to a 4.94. She went from earning an average of more than $1,270 per week to $690 per week, while working the same total hours, screenshots and weekly earnings reports show.

When Zahara had a rating of 4.95, compensation for batches of deliveries available to her ranged from $15 to $45. At a 4.94, screenshots show orders dipped to $9 to $22, with those at the higher end in a different county than where she lived and typically worked.

“I just had to live with the bad ratings and bad batches and no money,” she said.

Instacart says the system was developed to ensure ratings are “fair and accurate,” and do not unfairly penalize shoppers.

To protect shoppers, Instacart automatically forgives a customer’s single lowest rating, said Instacart spokesperson Natalia Montalvo. And “ratings that are outside of shoppers’ control” are also forgiven — such as when a customer complains that requested item is out of stock at a store, she said.

Read the complete article here.

Coronavirus: Retail workers ‘scared’ as cases surge during U.S. holidays

From BBC News Online:

They are calling for hazard pay, paid sick leave and better communication about outbreaks, among other things. The campaign comes as workers across the US have spoken out about condition and concerns over their health.

“Associates like me are scared,” said Walmart worker Melissa Love.

The workers rights campaign launched on Monday was organised by United for Respect, a workers rights non-profit that says it represents more than 16 million people across the US. Separately, the labour union UFCW, whose members include grocery and meatpacking plant workers, also called on employers to do more to protect staff.

“Simply put, frontline workers are terrified because their employers and our elected leaders are not doing enough to protect them and stop the spread of this virus,” UFCW International President Marc Perrone said.

“As holiday shopping begins this Thanksgiving, we are already seeing a huge surge of customer traffic. Unless we take immediate actions beginning this holiday week, many more essential workers will become sick and more, tragically, will die.”

Ms Love, a member of United for Respect who has worked at Walmart for five years, said on a call organised for reporters that she feared a rush of holiday shoppers could turn Walmart into a “super-spreader” hub.

“Working Black Friday this year comes with an obvious danger,” said Ms Love, who is based in California. “I do not believe Walmart should be trying to entice crowds into our stores on Friday and risk a super-spreader event.”

Read the complete article here.

What Prop. 22’s defeat would mean for Uber and Lyft — and drivers

From today’s Los Angeles Times:

One way or another, the business of summoning a ride from your phone is likely to look different in California after Nov. 3.

The future of gig work could hinge on the success or failure of Proposition 22, called the App-Based Drivers as Contractors and Labor Policies Initiative. Uber, Lyft and other companies bankrolling the initiative say it would improve workers’ quality of life, providing new benefits while preserving their autonomy. If passed, the measure would cement gig workers’ status as independent contractors, dealing a huge blow to a labor movement striving to bolster protections for workers at the margins.

Abstract illustration of an app-based driver in a car

Gig companies’ business models rely on hiring large numbers of workers cheaply as independent contractors to provide rides, deliver meals and groceries and perform other services. Assembly Bill 5, a state law passed in 2019, aimed to expand protections to these workers, requiring gig companies to reclassify them as employees.

Proposition 22 represents the companies’ efforts to battle that law and the obligations that come with it.

Uber, Lyft, DoorDash, Instacart and Postmates (which was recently acquired by Uber) have jointly poured close to $200 million into the “yes” campaign, flooding the airwaves and their own apps with ads and making the measure the costliest in U.S. history.

At the heart of it all is a vicious fight to shape the prospects of hundreds of thousands of drivers and delivery workers across the state.

Here’s what you need to know.

What would happen if Proposition 22 passes?

For the companies sponsoring it, the short answer is: business as usual. For workers, it would bring some clarity, at a price.

The text of Proposition 22 assures drivers they would maintain flexibility as independent contractors. The measure offers some benefits similar to those conferred under AB 5, but significantly weaker.

Gig companies thus far have resisted compliance with AB 5, which went into effect Jan. 1. In early August, a judge ordered Uber and Lyft to convert their drivers to employees. At the 11th hour, the companies won a temporary stay of the order from a state appeals court, effectively pushing off the deadline until after voters have their say.https://datawrapper.dwcdn.net/Krp2r/6/

Uber and Lyft presented oral arguments before California’s 1st District Court of Appeal on Tuesday. The court has 90 days to decide whether it will uphold the lower-court ruling. But Proposition 22, if passed, would override protections granted by AB 5.

The measure instead would grant 120% of the minimum wage (state or local, depending on where the driver is). However, this minimum narrowly applies to “engaged time,” meaning the time a driver is on a trip with a passenger or en route to pick up a passenger. One study found drivers spend one-third of their time waiting between passengers or returning from trips, time that would not count toward the minimum wage.

Read the complete article here.

Will rideshare drivers get paid less than minimum wage under Proposition 22

From today’s Sacramento Bee:

Proposition 22 proposes that gig drivers for companies such as Uber, Lyft and Doordash will get paid 120% of the area’s minimum wage for the time they spend picking up and driving goods or passengers, plus 30 cents a mile.

Proponents of the proposition argue under its calculation, the drivers will get paid closer to $25 an hour after expenses, much more than the state’s minimum wage. But the initiative’s opponents cite a much-published study from the UC Berkeley Labor Center, whose researchers said Proposition 22 will guarantee only $5.64 an hour.

Amid an onslaught of advertisements, Proposition 22 still has a fundamental question to answer: How much will the gig drivers get under the initiative. A Sacramento Bee review found that the answer depends on how expenses and time at work are defined. But it is possible that workers would earn less than minimum wage under the measure.

In 2019, Ken Jacobs and Michael Reich at the UC Berkeley Labor Center published a report saying the gig drivers using Uber or Lyft will only be guaranteed a pay of $5.64 an hour under Proposition 22. They still stand by the number.

Under Proposition 22, drivers could get a pay cut from what they are paid now, Jacobs said. “The guarantee they claim to have,” he said of the gig companies. “is a false guarantee.”

Under Proposition 22, drivers will not be paid for the time they are waiting to give a ride, nor the time they spend preparing and cleaning their cars. That time accounts for some 33% of the drivers’ working time, Jacobs said, citing a 2019 study that looked at Lyft and Uber rides in six metropolitan areas across the country, including Los Angeles and San Francisco. “It’s impossible to do the work without having the time waiting for work,” Jacobs said.

Another report, “Rigging the Gig,” by the National Employment Law Project and the Partnership for Working Families found that drivers working 50 hours a week will be paid $175 to $210 less a week under Proposition 22 compared to the current minimum wage.

Read the complete article here.

Instacart shoppers face unforgiving metrics: ‘It’s a very easy job to lose’

From today’s Los Angeles Times:

Five days a week, Ryan Hartson scours the picked-over aisles of Mariano’s Fresh Market in Chicago to fill grocery delivery orders for Instacart. He clocks in for his shift exactly on the hour — if he’s even five minutes late, he’ll receive a “reliability incident.” Within four minutes he must accept any incoming orders. Any longer and he’ll be kicked off the shift and risk getting an incident. Three incidents in a week and he’s at risk of termination.

“It’s a very easy job to lose,” Hartson said.

To avoid missing orders, Hartson schedules his bathroom visits — after four hours of work, the app notifies him that he has earned a 10-minute paid break. Meanwhile, Instacart managers use the app to see if he’s running behind on his orders. The app also tracks Hartson’s customer communications, automatically searching for specific terms to ensure he’s using Instacart’s preferred script. If he doesn’t, his metrics will take another hit.

Metrics define the experience of Instacart’s part-time workforce. Measured weekly for employees such as Harston is the number of reliability incidents; the number of seconds it takes to pick each item; and the percentage of customers with whom they correspond. Some former and current employees say 5% to 20% of shoppers in a store can be fired weekly.

Even in the data-driven tech world, Instacart stands out for its metrics-oriented culture, interviews with more than 30 current and former employees as well as documents and recordings reviewed by The Times reveal. This drive toward productivity helps Instacart’s profit margins, a vital step for a start-up that recorded its first-ever monthly profit in April, as the coronavirus pandemic heightened demand for grocery delivery.

Instacart says it has eased enforcement of certain metrics during the pandemic, but shoppers say company policies often ignore the realities of the job, leaving them in constant fear of termination over things out of their control.

Instacart says it evaluates shoppers on more than just speed and efficiency. Natalia Montalvo, the company‘s director of shopper engagement and communications, said the in-store shopper role was built on the premise of “flexibility, efficiency, innovation and customer service.”

“Efficiency and fulfillment of customer orders in a timely manner is important,” Montalvo said, “but it’s just one of many factors we look at in our overall business health and growth relative to other contributors” such as revenue derived from advertising for and partnering with consumer brands.

Read the complete article here.

Uber likely to shut down in California for over a year if new ruling not overturned

From today’s NBC News Online:

In new court filings Wednesday, a top Uber official said the company would “almost certainly need to shut down” ride services in California for “likely more than a year” if a judge’s groundbreaking ruling issued this week is upheld on appeal.

In a new four-page declaration, Brad Rosenthal, Uber’s director of strategic operational initiatives, said that if the company has to reclassify the bulk of its workforce as employees rather than contractors, it will “force Uber to dramatically restructure its entire business model and its relationships with drivers and riders.”

In a call with investors Wednesday, Lyft CEO John Zimmer said the company would likely also suspend operations in the state for similar reasons.

Earlier Wednesday, Uber CEO Dara Khosrowshahi said the company would halt service in its home state of California for a few months if a judge’s groundbreaking ruling this week is upheld on appeal.

“We will have to shut down until November,” Khosrowshahi told MSNBC’s Stephanie Ruhle in an interview.

On Monday, Judge Ethan Schulman of the San Francisco County Superior Court found that there was an “overwhelming likelihood” that both Uber and Lyft had misclassified drivers as contractors rather than employees. Drivers make up the bulk of those companies’ labor forces.

The ruling was the latest twist in a lawsuit brought against the companies in May by the state’s attorney general. Schulman put a hold on enforcement of his ruling for 10 days pending appeal.

In the new filings, both companies asked the judge to at least extend this hold period beyond 10 days while they begin the appeals process. Schulman is set to hold a hearing on this issue Thursday.

Read the complete article here.

How COVID-19 turned a spotlight on weak worker rights in the U.S.

From today’s Harvard Gazette:

As the economy reopens after the COVID-19 shutdowns, businesses are taking a varied, often patchwork approach to ensuring health and safety for their workers, and much uncertainty persists regarding employers’ obligations and employees’ rights. The Gazette spoke with labor law experts Sharon Block, executive director of the Labor and Worklife Program, and Benjamin Sachs, the Kestnbaum Professor of Labor and Industry at Harvard Law School (HLS), about how the pandemic has turned a spotlight on the lack of clear workplace protections in general, and in particular for women and people of color, who were disproportionately represented among those deemed essential. Block and Sachs recently co-authored a report urging that U.S. labor law be rebuilt from the ground up. On June 24, they will release the report “Worker Power and Voice in the Pandemic Response.”

Q&A: SHARON BLOCK AND BENJAMIN SACHS

GAZETTE: What do you think the COVID-19 crisis has revealed about working conditions in the United States?

BLOCK: What it has revealed is something that many of us have known for a long time, but it’s been revealed in a much more urgent way, and it is how tattered our social safety net is in this country. That plays out in in a number of ways: for example, how inadequate our supports for workers are in terms of unemployment insurance. Just look at the desperate circumstances now more than 40 million workers have found themselves in. That’s been the reality for many low-wage workers, not on a mass scale, but that’s been their lived experience, even throughout a time when we thought we were in an expanding economy. The other side that has been exposed is that for workers who have been deemed essential and have worked throughout this crisis, how little protection they have in the workplace to be able to stand up for themselves, to say that their conditions are unsafe and they’re not being paid adequately for the important work they’re doing. On all sides of the social safety net and the ability of low-wage workers to have a decent life, what we’re seeing in myriad ways is how the system has failed workers.

SACHS: I would just add how weak the protections are for workers who stand up and demand safe, healthy, and fair working conditions, and how easy it is to fire workers who do that. It has also shown how badly broken our system of labor law is, which is to say that our system doesn’t give workers a voice so that the only recourse workers have is to take to the streets, and how little opportunity they have for an institutional structure of communication and demand-making. The other thing that Sharon and I would like to stress is how the crisis is being borne disproportionately by workers of color and women, which is another failing of our labor market and our system of labor law.

GAZETTE: Why are workers of color and women bearing the brunt of the coronavirus crisis? What role do the labor market and the labor law system play in it?

BLOCK: This is the result of the broken safety net we have. These are workers who are deemed essential, but the law has not treated as essential. They don’t have basic rights or the law doesn’t adequately address their situation. For lots of low-wage workers who are in these essential industries, the current labor law is particularly broken. They really have almost no real access to being able to act collectively and have the law recognize that and thereby give them power to affect their situation at work. As Ben said, they are predominantly workers of color and women, and that’s a big piece of why this pandemic has hit them so hard. We’re really seeing this connection that a lot of people intuitively knew, but hopefully more people understand now, which is that it is hard to separate economic issues and public health issues and issues of physical well-being. It’s not an accident that most people who are getting sick are poor or paid low wages.

Read the complete article here.

Strikes erupt as US essential workers demand protection amid pandemic

From The Guardian Online:

Wildcat strikes, walkouts and protests over working conditions have erupted across the US throughout the coronavirus pandemic as “essential” workers have demanded better pay and safer working conditions. Labor leaders are hoping the protests can lead to permanent change.

Food delivery workers have become essential in New York after the city closed restaurants and bars to the public on 16 March.

Norma Kennedy, an employee at an American Apparel clothing plant is one of those people. Kennedy along with dozens of other workers walked off her job in Selma, Alabama, on 23 April after two workers tested positive for coronavirus. The plant has remained open during the pandemic to manufacture face masks for a US army contract.

“We left for our own protection,” said Kennedy. “Beforehand, management said if someone tested positive they would shut down and have the plant cleaned. When workers tested positive, they didn’t want to shut it down. They’re not really concerned about the workers.”

Working conditions, low pay and lack of safety protections have triggered protests throughout the pandemic as workers across various industries, including food service, meat processingretail, manufacturing, transportation and healthcare have come together to protest about issues, many of which were apparent before the coronavirus.

“There are no federal mandates or requirements to implement the social distancing guidance or anything else. It’s only guidance and employers can choose to implement them or not,” said Deborah Berkowitz, director of worker safety and health for the National Employment Law Project. “And that is why, in an unprecedented way, they are walking out to bring public attention to the fact that their companies are not protecting their safety and health.”

Read the complete article here.

Congress calls essential workers ‘heroes,’ hasn’t passed hazard pay raise

From today’s CNBC News:

Anyone listening to congressional leaders speak during the coronavirus outbreak has heard a lot about the “heroes” sustaining the rest of the country. 

A view outside Bellevue hospital during the coronavirus pandemic on May 1, 2020 in New York City.

Senate Majority Leader Mitch McConnell, R-Ky., on Tuesday lionized “American heroes” in the health-care industry whom he said should have stronger protections from lawsuits. About a month earlier, Senate Democrats proposed a “Heroes Fund” to give a $13 an hour hazard pay raise to workers — from doctors and nurses to grocery and transit employees — who face a heightened risk of contracting Covid-19, the deadly disease caused by the coronavirus

House Democrats, who hold the majority in the chamber, also used the term “heroes” on Tuesday, calling their next $3 trillion relief bill the “HEROES Act.” The proposal, which could pass in the Democratic-controlled House but has little chance of getting through the GOP-held Senate and becoming law, includes a $200 billion “Heroes Fund” to offer front-line employees a raise.

Two months into the pandemic, only some businesses and cities have given the people still required to go into work a raise. While lawmakers have put forward several hazard pay plans, none of them made the cut in the four bills Congress has passed to try to mitigate the coronavirus’s devastation. 

As workers deemed essential “heroes” during the pandemic push for better compensation, no legislation with a real chance of becoming law has yet included better pay for them. As Republicans pump the brakes on another major federal spending bill, passage of a widespread wage hike for front-line workers appears unlikely in the coming weeks.  

“They’re putting their lives on the line, they’re essential employees. They should be compensated for that. This is above and beyond the normal call of duty,” said Bob Gibson, vice president of Service Employees International Union Local 1199 in Florida, a state where the union represents more than 25,000 health-care employees. 

Read the complete article here.