The Gig Economy Is Coming for Jobs

From today’s New York Times:

A few years ago, Adalberto Martín began to see some troubling changes at work. As a veteran member of the room service staff at Marriott’s W Hotel in downtown San Francisco, he was an expert in delivering carefully assembled trays of food and drink to hungry guests. But the number of orders had sharply decreased. What was once 50 glasses of orange juice every morning had dwindled to 10, and Mr. Martín’s tip income fell accordingly. At lunchtime, he seemed to make more deliveries of plates and silverware than actual food.

Room service, as we imagine it in the movies, with white tablecloths and silver cloches, has long been in decline, even at the fanciest hotels. But Mr. Martín attributes his loss of earnings to the proliferation of food delivery apps such as Uber Eats, DoorDash and Postmates, successors of online ordering services like Seamless. Now he wonders if soon he’ll be out of a job altogether. “We’re always worrying and concerned when we see other hotels nearby closing room service,” Mr. Martín told me. “It’s just a matter of time.”

His co-workers at the W and staff members at other hotels report similar trends: The doormen and bellmen who once summoned cabs for guests, and were tipped in return, now watch lines of Ubers and Lyfts coil in front of the lobby doors, while concierges have had their work outsourced to iPad consoles. Some hotels offer tablets in every room preloaded with food-delivery apps, and give guests vouchers for Uber and Lyft rides. In the microcosm of the hotel, the app economy has expanded choices for some (the guests) and shrunk options for others (the workers).

These currents in hospitality represent a subtle, sneaky form of technological displacement, care of the gig economy. They’re not robots stepping in for humans on a factory floor, but rather smartphone-based independent contractors and supplemental “cobots” (a portmanteau of “co-worker” and “robot”) chipping away at the careers of full-time and in some cases unionized employees.

In the beginning of the gig economy, people most feared one-to-one job loss: An Uber driver comes in, a taxi driver goes out. And taxi drivers have indeed lost their livelihoods — and taken their own lives. Yet many app workers are only part-time, driving or TaskRabbit-ing to supplement their wages in a traditional job. App companies, for their part, deny that even full-timers are employees, perpetuating the fantasy that gig workers are solo entrepreneurs. It’s a business model that reduces everything to a series of app-enabled transactions, and calls it work, leaving what’s left of the welfare state to fill in the rest.

Aaron Benanav, a labor historian at the University of Chicago, explains that this process of “de-skilling” and misclassification is happening all over the world. The gig economy “is being used to replace skilled workers with less skilled, or continuing a process that’s happening all over the world of ‘disguised employment,’ where you bring in independent contractors to replace employees,” he said. “There’s an app for that” means that there’s less steady, reliable work for traditional employees.

Read the complete article here.

Major union launches campaign to organize video game and tech workers

From today’s Los Angeles Times:

The last two years have witnessed a wave of walkouts, petitions and other workplace actions at video game and tech companies.

But despite this swell in labor activism, employees at no major video game studios and only a handful of tech offices have formally voted to form or join a union.

A new campaign launched Tuesday by one of the nation’s largest labor unions — and spearheaded by one of the leading video game industry activists in Southern California — aims to change that.

The Campaign to Organize Digital Employees (CODE for short) is a new project of the Communications Workers of America aimed specifically at unionizing video game and tech companies.

It grew out of conversations between the CWA and Game Workers Unite, a grass-roots organization that sprang up in 2018 to push for wall-to-wall unionization of the $43-billion video game industry, alongside conversations with organizers across the larger tech industry.

Separate from the new initiative, the Toronto chapter of GWU has also signed a formal partnership agreement with CWA to work on organizing in the area. (CWA is also the parent union of the NewsGuild, which represents workers at the L.A. Times and most major newspapers in the country.)

Read the complete article here.

Data Privacy: What Californians can do about creepy data collection in 2020

From today’s The Mercury News:

Starting New Year’s Day, Californians creeped out by the trove of personal data companies collect on their online shopping, searching and social media habits will get sweeping new privacy rights that will let them opt out of having their information sold or shared and let them demand that it be deleted.

“This is really a watershed moment for consumers,” said Scott W. Pink, a Menlo Park lawyer who advises companies on cybersecurity and privacy. “It’s the first law in the United States outside specialized industries like health care that provides consumers some degree of control and access over data collected on them.”

The California Consumer Privacy Act approved in June 2018 was inspired by public outrage over data breaches at major companies such as Facebook, Yahoo and Equifax that exposed consumers to potential fraud and misuse of their personal information, and by the European Union’s General Data Protection Regulation.

The new law requires that businesses disclose their data gathering and sharing practices and allows consumers to opt out of it and to demand that businesses delete collected information on them. It prohibits companies from penalizing consumers with higher rates or fewer services for exercising their privacy rights and from selling information about children under age 16 without their explicit consent.

But questions continue to swirl as companies scramble to comply. The state attorney general is still finalizing proposed regulations intended to guide consumers and businesses in order to meet a July deadline when enforcement is expected to begin.

And both consumer and business advocates continue to spar over whether the new privacy provisions go too far or not far enough, with proposed state and federal substitutes in the works.

Read the complete article here.

A brutal year: how ‘techlash’ caught up with Facebook, Google and Amazon

From The Guardian Online:

What goes up must come down, and in 2019, gravity reasserted itself for the tech industry.

After years of relatively unchecked growth, the tech industry found itself on the receiving end of increased scrutiny from lawmakers and the public and attacks from its own employees.

Facebook and Instagram ads were linked to a Russian effort to disrupt the American political process.
Social Media, Fake News, and the hijacking of democracy by reactionary forces at home and from abroad.

“The whole year has been brutal for tech companies,” said Peter Yared, chief executive officer and founder of data compliance firm InCountry. “The techlash we have seen in the rest of the world is just now catching up in the US – it’s been a long time coming.”

From new privacy legislation to internal strife, here are some of the major hurdles the tech industry has faced in the past year.

As the 2020 presidential race intensified, tech companies faced a growing backlash over the campaign-related content they allow on their platforms.Advertisement

In October, Facebook quietly revised its policy banning false claims in advertising to exempt politicians, drawing fierce criticism from users, misinformation watchdogs, and politicians. Following the change in policy, presidential candidate Elizabeth Warren took out advertisements on Facebook purposely making false statements to draw attention to the policy.

Democratic lawmaker Alexandria Ocasio-Cortez grilled Facebook’s chief executive, Mark Zuckerberg, over the policy change in a congressional hearing in October. “Do you see a potential problem here with a complete lack of factchecking on political advertisements?” Ocasio-Cortez asked, as Zuckerberg struggled to answer. “So, you won’t take down lies or you will take down lies?”

Meanwhile, other tech companies took the opposite stance.TikTok, whose reported 500 million users makes it one of Facebook’s largest rivals, made clear in a blogpost in October it would not be hosting any political advertisements.

And Facebook rival Twitter banned almost all political advertising in October. Google stated in November it would no longer allow political advertisers to target voters based on their political affiliations.

Read the complete article here.

Opinion: One Man Can Bring Equifax to Justice (and Get You Your Money)

From today’s New York Times:

On Dec. 19, District Judge Thomas Thrash of Atlanta will hold a final approval hearing for the Equifax 2017 data breach settlement. There’s a lot at stake. If the settlement is approved, the $31 million pool earmarked for claims will be paid out to some victims. Others will get free credit monitoring (because the cash reward set aside for victims was so small, if all 147 million people affected by the breach filed a claim, everyone would get just 21 cents).

There’s another option. As I wrote in a September column, victims could file a formal, legal objection, which would nullify the settlement. If Judge Thrash finds those objections convincing, Equifax’s class-action counsel wouldn’t receive their $77.5 million fee and Equifax would be liable again to face a substantial penalty for the breach. I’m happy to report quite a few people — maybe even a record number — did just that.

Over the past month Reuben Metcalfe, the founder of Class Action Inc., helped 911 individuals object (another 294 objected but did not provide signatures by the Nov. 19 deadline) by creating a chatbot tool that allowed victims to file objections automatically for the Equifax settlement at no cost (Class Action Inc. waived its 5 percent fee for Equifax). Theodore H. Frank, a lawyer who specializes in class-action suits, has jumped in the ring himself along with another victim, David Watkins. Frank’s objections, which are more formal and detailed than Metcalfe’s many automated ones, argue that the settlement is too broad and doesn’t take into account state-by-state protections for data breaches (in Utah, where Watkins lives, victims could claim damages up to $2,000).

Now it’s up to Judge Thrash to sift through the settlement and its objections and decide. Thanks to Metcalfe and Frank, he’s likely to be feeling some pressure. Back in September a class-action lawyer told me that even if only 1,000 people object, it can send a powerful message. Frank is hopeful the settlement will look weak on its own merits. “If the judge gives an honest look, he’ll realize it doesn’t meet muster,” he told me recently.

I’d argue there’s even more resting on Judge Thrash’s shoulders, including whether companies can get away with abusing our data in the future. Metcalfe, who has steeped himself in the world of class-action suits, suggested that the settlements, initially a method for accountability, have become a mechanism for companies to knowingly skirt liability for not protecting consumers. “It’s becoming cheaper to say sorry after the fact than to obey the law in the first place,” he told me.

This feels especially true in the world of data privacy, where breaches are so frequent that a discovery last week of an open database containing the personal information of 1.2 billion people hardly made news. We seem locked in a vicious cycle: Companies that gather and trade data have few checks or regulations. This allows them to collect more, which means more money. And deeper pockets make it harder to impose meaningful penalties that might deter repeat and future offenders (see: the Federal Trade Commission’s $5 billion slap on the wrist of Facebook). Judge Thrash, then, has a unique opportunity to make a statement by objecting.

Read the complete article here.

Andrew Yang claims, “Yes, Robots Are Stealing Your Job.” So now what?

From today’s New York Times:

During the last Democratic debate, in Ohio, there was a moment that stood out. Elizabeth Warren and I got into a debate over the impact of automation versus trade on the elimination of manufacturing jobs. Joe Biden also chimed in, agreeing that the fourth industrial revolution is costing jobs, so it’s important to deal with the root causes.

Immediately, fact checkers were quick to point to a study showing that 88 percent of factory job losses from 2000 to 2010 were caused by automation. Yet, in the days following that debate, some prominent media figures asserted that the threat of automation is not real. The Times columnist Paul Krugman even called it “a sort of escapist fantasy for centrists who don’t want to confront truly hard questions.”

It’s easy to cite incomplete statistics that ignore the full picture and the situation on the ground, but I’ve done the math while spending time in struggling communities. Venture for America, the nonprofit I founded, sent me across this country, to Detroit, St. Louis, Birmingham, Ala., and other communities, where we attempted to spur entrepreneurship and create jobs. It was during this time when I spoke with workers who had lost their jobs to automation and couldn’t find more work. My organization was helping to create jobs, but automation was displacing tens of thousands of workers in these states. We were pouring water into a bathtub with a giant hole ripped in the bottom.

On the campaign trail, I’ve spoken with workers in Michigan, Ohio and western Pennsylvania, workers who are worried about the inevitability of their jobs falling victim to automation.

Read the complete article here.

As L.A. ports automate, some workers are cheering on the robots

From today’s Los Angeles Times:

Day after day, Walter Diaz, an immigrant truck driver from El Salvador, steers his 18-wheeler toward the giant ports of Los Angeles and Long Beach. Will it take him half an hour to pick up his cargo? Or will it be as long as seven hours? He never knows.

Diaz is paid by the load, so he applauds the arrival of more waterfront robots, which promise to speed turnaround times at a port complex that handles about a third of the nation’s imported goods.

“I’m for automation,” Diaz says. “One hundred percent. One hundred percent.”

But what about the thousands of International Longshore and Warehouse Union workers who have mounted massive protests, saying the robots will replace human jobs? The ILWU members, who transfer cargo from ships to trucks and direct terminal traffic, “don’t care about the drivers,” said Diaz, 41, who has serviced the ports for two decades. “Never. We sit in line while they take two-hour breaks. With automation, we don’t have that problem.”

The arrival of robots at the nation’s largest marine terminal, a 484-acre facility run by Danish conglomerate A.P. Moller-Maersk, is exposing a stark economic divide between two sets of Southern California workers.

Read the complete article here.

5-Hour Workdays? 4-Day Workweeks? Yes, Please

From today’s New York Times:

A German entrepreneur named Lasse Rheingans has become a subject of attention since The Wall Street Journal recently reported on a novel idea he has put in place at his 16-person technology start-up: a five-hour workday. Mr. Rheingans is not just reducing the time his employees spend in the office; he’s reducing the total time they spend working altogether. They arrive at 8 a.m. and leave at 1 p.m., at which point they’re not expected to work until the next morning.

This distinction between time in the office and time spent working is critical. In our current age of email and smartphones, work has pervaded more and more of our waking hours — evenings, mornings, weekends, vacations — rendering the idea of a fixed workday as quaint. We’re driven to these extremes by some vague sense that all of this frantic communicating will make us more productive.

Mr. Rheingans is betting that we have this wrong. His experiment is premised on the idea that once you remove time-wasting distractions and constrain inefficient conversation about your work, five hours should be sufficient to accomplish most of the core activities that actually move the needle.

To support this new approach, he has employees leave their phones in their bags at the office and blocks access to social media on the company network. Strict rules reduce time spent in meetings (most of which are now limited to 15 minutes or less). Perhaps most important, his employees now check work email only twice each day — no drawn out back-and-forth exchanges fragmenting their attention, no surreptitious inbox checks while at dinner or on the sidelines of their kids’ sporting events.

The Wall Street Journal described Mr. Rheingans’s approach as “radical.” But as someone who thinks and writes about the future of work in a high-tech age, I’ve come to believe that what’s really radical is the fact that many more organizations aren’t trying similar experiments.

Read the complete article here.

Opinion: You Call It the Gig Economy, but California Calls It “Feudalism”

From today’s New York Times:

Labor leaders cheered in the balcony and lawmakers embraced on the floor of the California Senate on Tuesday as it passed a landmark measure that defines employees, a move that could increase wages and benefits for hundreds of thousands of struggling workers.

Image result for uber

But the bill is as much a starting point as an endgame: It will drive a national debate over how to reshape labor laws fashioned in the industrial era of the 1930s to fit a 21st-century service and knowledge economy.

With the measure, which Gov. Gavin Newsom says he will sign, California will lead in a shift that will likely redefine the roles of governments, unions and worker organizations. Just as federal labor laws were promulgated to help the country recover from the Depression, the imperative to extend basic guarantees like a minimum wage stems from the staggering income inequality in California, the state with the highest poverty rate in the country.

The new paradigms will need to fit not the relatively stable industrial work force of the last century but a gig economy in which workers are increasingly likely to hold multiple jobs or report to no workplace at all. California lawmakers took a major step in constructing the foundation of such a model with the new measure, which presumes workers are employees, entitled to all concomitant protections and benefits, unless they meet strict criteria as truly independent contractors.

Read the complete article here.

Sweeping bill rewriting California employment law sent to Gov. Newsom

From today’s Los Angeles Times:

California lawmakers rewrote the rules of employment across a wide swath of industries Wednesday in legislation that could grant hundreds of thousands of workers new job benefits and pay guarantees.

After vigorous debates over what occupations should be exempted, Assembly Bill 5, which curbs businesses’ use of independent contractors, gained final approval in the state Senate and the Assembly and was sent to Gov. Gavin Newsom, who has pledged his support.

The 6,700-word bill is one of the most controversial of the year. It could upend the relationship between workers and bosses across businesses as varied as ride-hailing tech giantsconstruction, healthcare, truckingjanitorial servicesnail salonsadult entertainment, commercial fishing and newspapers.

The message of the legislation, said its author, Assemblywoman Lorena Gonzalez (D-San Diego), is “we will not in good conscience allow free-riding businesses to continue to pass their own business costs on to taxpayers and workers. It’s our job to look out for working men and women, not Wall Street and their get-rich-quick IPOs.”

Contractors, including many in multibillion-dollar technology companies, are not covered by laws guaranteeing a minimum wage, overtime pay, sick leave, family leave, unemployment and disability insurance, workers’ compensation and protection against discrimination or sexual harassment. Nor do businesses pay into Social Security or Medicare for contractors.

After months of lobbying by the California Chamber of Commerce and a score of trade associations, AB 5 exempted a host of occupations — but not platform-based gig giants Uber, Lyft, DoorDash, Postmates and others that mounted a powerful push to avoid reclassifying their workers as employees with labor law protections.

Read the complete article here.