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.

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.

How the Coronavirus Could Create a New Working Class

From today’s Atlantic Online:

Late last month, a photo circulated of delivery drivers crowding around Carbone, a Michelin-starred Greenwich Village restaurant, waiting to pick up $32 rigatoni and bring it to people who were safely ensconced in their apartment. A police officer, attempting to spread out the crowd, reportedly said, “I know you guys are just out here trying to make money. I personally don’t give a shit!” The poor got socially close, it seems, so that the rich could socially distance.

The past few weeks have exposed just how much a person’s risk of infection hinges on class. Though people of all incomes are at risk of being laid off, those who can work from home are at least less likely to get sick. The low-income workers who do still have jobs, meanwhile, are likely to be stuck in close quarters with other humans. For example, grocery-store clerks face some of the greatest exposure to the coronavirus, aside from health-care workers. “Essential” businesses—grocery stores, pharmacies—are about the only places Americans are still permitted to go, and their cashiers stand less than an arm’s length from hundreds of people a day.

My inboxes have filled up with outcries from workers at big-box retailers, grocery stores, and shipping giants who say their companies are not protecting them. They say people are being sent into work despite having been in contact with people infected with the virus. They say the company promised to pay for their quarantine leave, but the payment has been delayed for weeks and they are running out of money. Or the company denied their medical leave because they don’t have proof of a nearly impossible-to-get COVID-19 test. Or the company doesn’t offer paid medical leave at all, and they’re wondering how they’ll pay for gas once they recover from the disease.

Masks are in short supply nationwide, and some managers have resisted allowing workers to wear them, fearing it will disrupt the appearance of normalcy. Some companies have rolled out “hazard pay” for employees, but in many cases it amounts to about $2 more an hour. The Amazon employees I’ve spoken with largely work fewer than 30 hours a week, and the company does not provide them with health insurance. One Walmart employee used up all his attendance “points” while sick with the virus, and was fired upon his return to work. (Walmart did not comment on his situation for my story.) At least 41 grocery-store workers have already died from the virus. “I make $14.60 an hour and don’t qualify for health care yet,” one grocery-store employee in New Mexico wrote to me. “I am freaked out.”

Meanwhile, many white-collar workers have no “points” system. Many such jobs offer as much paid time off as an employee and her manager agree to—a concept far beyond even the most generous policies at grocery stores. Many PR specialists, programmers, and other white-collar workers are doing their exact same job, except from the comfort of their home. Some are at risk of being laid off. But for the most part, they are not putting their lives in danger, except by choice.

Read the complete article here.

Sen. Elizabeth Warren (D-MA) wants a bill of rights for essential workers

From today’s Boston.com:

Elizabeth Warren says the next coronavirus relief package should “put all workers front and center.” But the Massachusetts senator is also proposing a slate of new protections for those who don’t have the luxury of staying at home during the pandemic.

Warren and California Rep. Ro Khanna unveiled an “Essential Workers Bill of Rights” on Monday aimed at boosting protections and benefits for the employees most exposed to COVID-19.

Experts say between 49 million and 62 million Americans are employed by industries designated as “essential” by the federal government. And while health care employees are viewed to be at the greatest risk of contracting the disease, the list also includes other “frontline” workers whose jobs continue to require them to be in close contact with other people during the outbreak, from grocery store workers and janitors to truck drivers and transportation employees to government and child care workers.

“Essential workers are the backbone of our nation’s response to coronavirus,” said Warren, who has called on Congress to end its weeks-long recess to pass additional legislation in response to the economic and public health crises wrought by the pandemic.

The federal government has issued some guidance for workers in the food retail industry, but Warren and Khanna want Congress to strengthen and expand those policies in the next relief package,

Their “Essential Workers Bill of Rights” proposal would require employers to provide all frontline workers with personal protective equipment and robust hazard pay “retroactive to the start date of the pandemic.” It would create a program to require — and reimburse — employers to provide up to 14 days of paid sick leave and 12 weeks of paid family and medical leave during the public health crisis.

Read the complete article here.

Could the Pandemic Wind Up Fixing What’s Broken About Work in America?

From today’s New York Times:

Crises like pandemics, economic collapses and world wars have, at times throughout history, ended up reordering societies — shrinking the gap between the rich and the poor, or empowering the working class. The Black Death helped end feudalism. The Great Depression helped lead to the New Deal. Never has extreme economic inequality shrunk in a meaningful way, says the Stanford historian Walter Scheidel, without a major crisis.

The coronavirus pandemic, as of now, is not on the order of the plague, but it’s hitting the United States during a period of agitation about worsening inequality and waning power for workers. Already, it has made stark how precarious life is for many American workers, causing some to revolt. How employers and policymakers respond could improve work in the United States for the long term — or make the existing problems worse.

“Pandemics as a social shock do give workers more leverage to demand things,” said Patrick Wyman, a historian and host of the Tides of History podcast. “Crises like these reveal what is already broken or in the process of breaking.”

“They are attacks on a particular socioeconomic way of organizing your society,” he said. “The question is whether your institutions can make collective things happen.”

The United States is distinctive among rich countries in its lack of worker protections like nationwide paid sick leave, paid family leave and universal health insurance, and in its minimal labor union membership. For both high and low earners, many employers expect workers to be on call around the clock. Companies are typically beholden to shareholders first, above employees, customers and communities.

But the coronavirus pandemic has shown the flaw in that logic: Worker well-being is the foundation for everything else.

Read the complete article .

Grocery workers are beginning to die of coronavirus

From today’s Washington Post:

Major supermarket chains are beginning to report their first coronavirus-related employee deaths, leading to store closures and increasing anxiety among grocery workers as the pandemic intensifies across the country.

A Trader Joe’s worker in Scarsdale, N.Y., a greeter at a Giant store in Largo, Md., and two Walmart employees from the same Chicago-area store have died of covid-19, the disease the novel coronavirus causes, in recent days, the companies confirmed Monday.

Though more than 40 states have ordered nonessential businesses to close and told residents to stay home to stem the spread of the virus, supermarkets are among the retailers that remain open. Thousands of grocery employees have continued to report to work as U.S. infections and death rates continue to climb, with many reporting long shifts and extra workloads to keep up with spiking demand. Many workers say they don’t have enough protective gear to deal with hundreds of customers a day. Dozens of grocery workers have tested positive for the coronavirus in recent weeks.

Industry experts say the rise of worker infections and deaths will likely have a ripple effect on grocers’ ability to retain and add new workers at a time when they’re looking to rapidly hire thousands of temporary employees. Walmart, the nation’s largest grocer, is hiring 150,000 workers, while Kroger is adding more than 10,000. Many are offering an extra $2 an hour and promising masks, gloves and hand sanitizer. But finding people willing to work on the front lines for little more than the minimum wage could be an increasingly tough sell, according to supermarket analyst Phil Lempert.

“One of the biggest mistakes supermarkets made early on was not allowing employees to wear masks and gloves the way they wanted to,” he said. “They’re starting to become proactive now, but it’s still going to be much tougher to hire hundreds of thousands of new workers. We’re going to start seeing people say, ‘I’ll just stay unemployed instead of risking my life for a temporary job.’ “

Read the complete article here.

Freelancers can get unemployment pay for jobs lost to coronavirus

From today’s Los Angeles Times:

New coronavirus laws provide a litany of benefits to the self-employed, freelancers and workers in the gig economy. But what are the benefits, and how do you claim them? Here are some answers explaining how the laws impact freelancers.

I lost my part-time gig because of the coronavirus lockdown. Can I claim unemployment insurance?

Yes. The federal CARES Act creates a temporary Pandemic Unemployment Assistance program, which provides unemployment insurance coverage to self-employed individuals, independent contractors and those with limited work history. (You must be available for work but unable to do your job as the result of the pandemic.) All of these individuals were barred from claiming state unemployment insurance benefits prior to the passage of this law.

How much will I get?

That depends on where you live. Each state operates its own unemployment insurance program. Requirements and pay-out ratios vary from state to state. For instance, California’s unemployment insurance program provides about 46% of working wages, up to set limits. Maximum unemployment benefits amount to $450 a week.

Thus, if you previously earned $1,000 a week ($4,000 a month), you’d get $450 in weekly unemployment coverage, or $1,800 per month from the state of California. The new CARES Act adds a federal payment of $600 a week to that. So, this hypothetical worker could get as much as $4,200 a month.

However, if you live in Alabama, the state’s maximum weekly benefit caps out at $275. Thus, an unemployed worker in Alabama would receive a top benefit of $1,100, plus $600 weekly from the CARES Act, for a total of $3,500.

Read the complete article here.

Amazon, Instacart Workers Demand Coronavirus Protection And Pay

From NPR News Online:

Some Amazon warehouse workers in Staten Island, N.Y., and Instacart’s grocery delivery workers nationwide walked off their jobs on Monday. They are demanding stepped-up protection and pay as they continue to work while much of the country is asked to isolate as a safeguard against the coronavirus.

The protests come as both Amazon and Instacart have said they plan to hire tens of thousands of new workers. Online shopping and grocery home delivery are skyrocketing as much of the nation hunkers down and people stay at home, following orders and recommendations from the federal and local governments.

This has put a spotlight on workers who shop, pack and deliver these high-demand supplies. Companies refer to the workers as “heroes,” but workers say their employers aren’t doing enough to keep them safe.

The workers are asking for a variety of changes:

  • Workers from both Amazon and Instacart want more access to paid sick time off. At this time, it’s available only to those who have tested positive for the coronavirus or get placed on mandatory self-quarantine.
  • Amazon workers want their warehouse to be closed for a longer cleaning, with guaranteed pay.
  • Instacart’s grocery delivery gig workers are asking for disinfectant wipes and hand sanitizer and better pay to offset the risk they are taking.

Read the complete article here.