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.

Pandemic Erodes Gig Economy Work

From today’s New York Times:

It was just after 11 a.m. last Wednesday when Jaime Maldonado, 51, pulled his rented Nissan into a lot outside San Francisco International Airport. He figured he had a long wait ahead — about two hours — before Lyft would ping him to pick up a passenger.

Occasionally, jets roared overhead — but not many, which meant not enough passengers for Mr. Maldonado, who said that before the coronavirus outbreak, he spent just 20 to 40 minutes waiting outside the airport for customers. To kill time, he got out of his car, looping the mask he recently started wearing around his wrist, and went to talk to other drivers.

As the minutes ticked by, Mr. Maldonado wondered out loud, “What am I going to do to pump gas and feed my kids tomorrow?” His number of rides in a typical week had dropped to around 50 from 100 earlier in the month, he said, and his payout had plunged by half to about $600 a week, from which Lyft would subtract the rental fee for his car.

The coronavirus pandemic is exposing the fragile situations of gig economy workers — the Uber and Lyft drivers, food-delivery couriers and TaskRabbit furniture builders who are behind the convenience-as-a-service apps that are now part of everyday life. Classified as freelancers and not full-time employees, these workers have few protections like guaranteed wages, sick pay and health care, which are benefits that are critical in a crisis.

While gig economy companies like Uber and DoorDash have promoted themselves as providing flexible work that can be lifelines to workers during economic downturns, interviews with 20 ride-hailing drivers and food delivery couriers in Europe and the United States over the past week showed that the services have been anything but that.

Instead, as the fallout from the coronavirus spreads, gig workers’ earnings have plummeted and many have become disgruntled about their lack of health care. Many others are also feeling economic pain from the outbreak — layoffs have hit workers in retailing, airlines, hotels, restaurants and gyms — but even as public health agencies have recommended social isolation to insulate people from the virus, gig workers must continue interacting with others to pay their bills.

Read the complete article here.

In major ruling, San Diego judge says Instacart will flunk AB 5 contractor test

From today’s San Diego Union-Tribune:

A San Diego Superior Court judge has ruled that Instacart is likely misclassifying some of its workers as contractors — when the law requires they be classified as employees — marking a notable step toward enforcement of the controversial new state law known as AB 5.

But the ruling came with a healthy dose of skepticism from the judge over the “wisdom” of the law itself.

Judge Timothy Taylor issued an injunction Feb. 18 against Instacart in San Diego Superior Court, essentially warning the San Francisco company that it’s failing to comply with the state’s labor laws. Instacart disagrees with the ruling, and plans to file an appeal, the company said in a statement Tuesday.

Instacart, which operates nationally and has a presence in San Diego, is an app that allows customers to place grocery orders online, which are then purchased and delivered by gig workers called “shoppers.” The labor law case, filed by San Diego City Attorney Mara Elliott in September, takes issue with how the grocery delivery company classifies its shoppers.

The suit alleges that Instacart shoppers do not qualify as independent contractors under a 2018 California Supreme Court decision (Dynamex Operations West, Inc. v. Superior Court). It’s the Dynamex case that spurred Assembly Bill 5 to move its way through the state legislature last year, sponsored by Assemblywoman Lorena Gonzalez (D-San Diego), and signed into law by Gov. Gavin Newsom. The law went into effect Jan. 1.

According to Judge Taylor, the law makes it clear that Instacart is in violation, calling California state policy “unapologetically pro-employee.”

“While there is room for debate on the wisdom of this policy, and while other states have chosen another course, it is noteworthy that all three branches of California have now spoken on this issue,” Taylor wrote in a court filing dated Feb. 18. “The Supreme Court announced Dynamex two years ago. The decision gave rise to a long debate in the legal press and in the Legislature. The Legislature passed AB 5 last fall. The Governor signed it. To put it in the vernacular, the handwriting is on the wall.”

Read the complete article here.

DoorDash’s anti-worker tactics just backfired spectacularly in court

From today’s Vox News Online:

The food delivery company DoorDash made its delivery workers sign away their right to sue if a legal dispute arises between a worker and the company. Instead, disputes would be resolved by a privatized arbitration system that tends to favor corporate parties.

It’s a common tactic, often used by companies seeking to discourage workers from asserting their legal rights at all. And, if a decision handed down Monday by a federal district judge stands, the tactic backfired spectacularly for DoorDash.

Under Judge William Alsup’s order in Abernathy v. DoorDash, DoorDash must arbitrate over 5,000 individual disputes with various workers who claim that they were misclassified as independent contractors, when they should be treated as employees. It also must pay a $1,900 fee for each of these individual arbitration proceedings.

Though DoorDash might settle the various claims before it is hit with these fees, Alsup’s order means that if it doesn’t, the delivery company will face a bill of nearly $10 million before any of the individual proceedings are even resolved. Add in the cost of paying for lawyers to represent them in each proceeding, plus the amount the company will have to pay to the workers in each proceeding that it loses, and DoorDash is likely to wind up paying far more money than it would have if it hadn’t tried to strip away many of its workers’ rights.

Ordinarily, when thousands of workers at the same company all raise very similar legal claims against that same employer, those workers will join together in a class action lawsuit — a process that allows all of the disputes to be resolved in a single suit rather than in thousands of separate proceedings. But DoorDash required these delivery workers to sign away their right to bring a class action as well.

That decision also appears to have backfired.

Read the complete article here.

New York Governor Lays Down Ultimatum on Gig Worker Rights

From today’s Bloomberg Law Online:

New York Gov. Andrew Cuomo (D) kicked gig worker rights out of the state’s budget discussion, instead creating a task force to study the issue. But he also provided lawmakers with an ultimatum.

If the issue isn’t resolved by May 1, the state’s labor department will be authorized to enact regulations protecting workers, Cuomo announced Jan. 21 as part of his executive budget proposal.

Policy is often negotiated alongside fiscal plans in the state’s budget process, which is kicked off by the governor. The state budget is due by March 31, before the next fiscal year begins.

One political expert says creating a task force is a way to delay a difficult decision that puts the governor between the state’s powerful unions and popular companies like Uber Technologies Inc. and Lyft Inc.

Some Albany insiders, companies, and lobbyists say the governor’s legislative proposal is vague. Several lawmakers and union leaders, however, are applauding Cuomo’s plan to further study whether many workers currently operating as independent contractors should instead be classified as employees, entitling them to benefits such as minimum wage, overtime, workers’ compensation, and the right to collectively bargain.

“We certainly are in a better place now, than we were at the end of last session,” New York State AFL-CIO President Mario Cilento said in an emailed statement. “In addition to creating a task force, the legislation would establish a framework to provide rights and protections to workers in the growing gig economy.”

Companies and business coalitions said they’re glad to have a seat at the table. “No matter the forum, we are ready to discuss solutions that provide workers with the protections they deserve while maintaining the flexibility they want and the economic growth vital to the state,” said Christina Fisher, a spokeswoman for Flexible Work for New York, a coalition of app-based technology companies, business groups, and civic organizations.

Read the complete article here.

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.

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.

Uber drivers are contractors, not employees, U.S. labor agency says

From today’s Reuters News Service:

Drivers for ride-hailing company Uber Technologies Inc are independent contractors and not employees, the general counsel of a U.S. labor agency has concluded, in an advisory memo that is likely to carry significant weight in a pending case against the company and could prevent drivers from joining a union.

The recommendation by the office of general counsel Peter Robb, who was appointed to the National Labor Relations Board by President Donald Trump, was made in a memo dated April 16 and released on Tuesday.

The general counsel said in the memo that Uber drivers set their hours, own their cars and are free to work for the company’s competitors, so they cannot be considered employees under federal labor law.

A ruling on the case is to be made by an NLRB regional director. Advisory memos from the general counsel’s office are generally upheld in rulings. Any decision could be appealed to the NLRB’s five-member board, which is also led by Trump appointees but is independent of the general counsel.

Read the complete article here.

Labor Dept. Says Workers at a Gig Company Are Contractors

From today’s New York Times:

The Labor Department weighed in Monday on a question whose answer could be worth billions of dollars to gig-economy companies, deciding that one company’s workers were contractors, not employees.

As a result, the unidentified company — whose workers, it appears, clean residences — will not have to offer the federal minimum wage or overtime, or pay a share of Social Security taxes. And while the decision officially applies only to that company, legal experts said it was likely to affect a much larger portion of the industry.

The move signals the Trump administration’s approach to the way gig companies, a growing share of the economy, must treat their work force. As companies like Uber and Lyft begin to sell shares to the public, industry officials estimate that requiring them to classify their workers as employees would raise their labor costs by 20 to 30 percent.

“Today, the U.S. Department of Labor offers further insight into the nexus of current labor law and innovations in the job market,” Keith Sonderling, an official in the division that oversees such issues, said in a statement. It is a longstanding policy for the department not to disclose the names of companies receiving such letters.

Read the complete article here.