Jon Weinberg is a student at Harvard Law School.
In addition to yesterday’s news out of California, there have been several recent developments affecting workers in the gig economy.
The labor movement appears to be embracing the conclusion that gig economy workers are employees. The AFL-CIO released a statement affirming that “working people in the gig economy share a single common designation: employees” and “working people deserve the full benefits that come with that status.” The statement notes the important benefits tied to the existence of an employment relationship, and expresses a desire on the part of the AFL-CIO to work with their “allies, businesses and community partners to enact policies that will prevent gig economy workers from falling through the cracks.”
Concerted activity by Uber drivers has attracted considerable attention and prompted a response from Uber. The New York Times reports that in New York “Uber’s indomitable rise has been clouded by an insurgency from a small but vocal portion of its own drivers who say they feel neglected, even used.” The article notes the tenuous relationship between Uber and its drivers, and recent protests by drivers over significant pay cuts which make it exceedingly difficult to earn a living driving for Uber. In addition, the coverage focuses on Uber’s culture, the difficulties with organizing drivers, pending litigation, and the development of a driver-owned app to compete with Uber. According to Quartz, Uber has responded to driver organizing by having its customer service representatives call Seattle Uber drivers and read a script explaining why unionization is bad for them. The representatives referred to their activity as “union busting.”
Those customer service workers have their own labor dispute with Uber. Buzzfeed News notes that between December 2014 and February 2016 “about 500 [customer service representatives] who joined the company as contractors were let go in droves — often without notice, and despite what many insist were promises of ongoing employment and even full-time gigs at Uber itself. Meanwhile, the quality of Uber’s customer support stuttered as the company quietly replaced U.S.-based CSRs with contractors in the Philippines and India, transitioning away from its system of U.S.-based CSRs to a global one with “Centers of Excellence” in key cities in the states and abroad — sometimes via politically motivated deals.” Workers quoted explain how they lost job security and benefits as Uber transitioned its customer service operations.
Two comprehensive studies reveal much about the composition of the gig economy workforce. Quartz reports that “a new study from the JPMorgan Chase Institute, a think tank under the bank, finds that people who rent out assets on “capital” platforms like Airbnb or car-sharing site Turo are bringing in supplemental income. That’s starkly different from people who sign up for “labor” platforms like Uber or TaskRabbit. They’re typically working to offset shortfalls in their monthly earnings.” Separately, The Rideshare Guy reported findings from a survey of 433 Uber drivers who responded to an email inquiry. The survey shows most drivers are dissatisfied with their experience driving for Uber.
Finally, Forbes reviews what Democratic and Republican presidential candidates are saying about the gig economy.
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July 3
Unions seek a preliminary injunction to prevent USDA downsizing; the D.C. District Court issues a preliminary injunction against new student loan regulations; Matt Bruenig releases an analysis of Starbucks’ ongoing legal battle against Starbucks Workers United.
July 2
First Circuit denies federal worker unions’ mandamus petition; federal court denies preliminary injunction against new union reporting rule; House introduces the Securing Agriculture’s Workforce Act.
July 1
Trump nominates Keith Sonderling as Labor Secretary; DOL eliminates disparate-impact liability from Title VI regulations; OPM finalizes rule allowing suitability-based removal of federal employees for post-appointment conduct.
June 30
SCOTUS ends removal protections for agencies; staff at NYC cocktail bar vote to unionize.
June 29
In today’s News and Commentary, student-athletes file a class action suit challenging the NCAA’s new Age-Based Rule, a federal judge declines to issue a preliminary injunction against FEMA’s reduction in force but expedites proceedings, and Gavin Newsom opposes California’s proposed billionaire tax in favor of a federal approach. On Thursday, DeJuan Campbell, at basketball player […]
June 28
Philadelphia utility workers announce July 4 strike; national parks workers vote to unionize; Michigan considers “right to disconnect” bill.