As a vote nears this week to reconsider Minneapolis’ new rideshare minimum wage law, City Council President Elliott Payne and council members Katie Cashman and Aurin Chowdhury say they will seek to push back the date entry into force of the order of two months, on July 1.
Council members say the delay would allow them to work with state lawmakers and give more time to new ride-hailing startups looking to enter the metro market. Several companies have expressed interest in operating in the Twin Cities to fill gaps left by Uber and Lyft, which have pledged to leave the city once the order takes effect.
The city’s ride-sharing ordinance, passed last month over Mayor Jacob Frey’s veto, has caused growing consternation among business groups and advocates for the disabled and elderly as it approaches date of entry into force, May 1.
Council member Andrea Jenkins, who voted for the ordinance, asked the council to reconsider it at its meeting Thursday.
Payne, Cashman and Chowdhury say they are open to changes and will seek to extend the implementation date to July 1. All three members would need to provide enough votes to enforce the deadline.
“This is a good faith extension for us as Council members to work on our legislative process, collaborate with state leaders, ensure drivers receive the fair compensation they need and supporting emerging ride-sharing companies and the passengers who embrace them,” the three men said. a joint statement on Wednesday. “It is up to Uber and Lyft to decide whether they will treat their workers fairly, pay them adequately, or continue their egregious behavior of scaring the public with their threats to leave Minneapolis residents behind.”
Uber spokesman Josh Gold said Wednesday the company would continue operating in Minneapolis until July 1 if the council pushes back the effective date.
“The proposed delay gives us more time to continue working with state leaders on a comprehensive statewide solution that would raise wages statewide, protect flexibility, and keep travel affordable “, did he declare.
City and state analyzes show that both rideshares currently pay drivers — many of whom are working-class immigrants — less than the Minneapolis minimum wage. But at city-mandated rates of $1.40 per mile and 51 cents per minute, Uber and Lyft have threatened to abandon the market, saying it would be too expensive to operate here. The move would be chaotic in the short term, before competing ride-hailing startups have a chance to obtain a license and recruit drivers, according to representatives of the Minneapolis-St. Paul International Airport and the hospitality industry said at a news conference earlier this week.
Four new rideshare companies have applied for licenses to work in Minneapolis, but none have completed the process yet.
A majority of 13 council members must agree to reopen the ordinance for further review Thursday before modifying it in any way, including changing the effective date.
Additional proposals
The ordinance’s original authors, Council Members Robin Wonsley, Jason Chavez and Jamal Osman, also issued a joint statement Wednesday, saying they would support delaying implementation until July 1 — but would not support l cancellation of the order or modification of the rate if this would cause drivers to continue driving. be paid below the Minneapolis minimum wage of $15.57.
The co-authors said they would introduce a proposal Thursday to ensure fare transparency by requiring ride-hailing companies to send receipts to passengers and drivers showing how much the driver was paid, as well as requiring that ride-sharing companies make regular reports to the city.
“Uber and Lyft drivers are paid less than minimum wage, which is fundamentally wrong and goes against our shared values. We passed this ordinance because the current rideshare system is broken, and we have been shocked at how much it leads to abusive labor practices,” according to the statement from Payne, Cashman and Chowhury. “Inaction was not and is not a choice.”
Uber and Lyft said they might be willing to stay if driver compensation rates were limited to more modest increases, such as the rate of 89 cents per mile and 49 cents per minute, identified in a report from the state Department of Labor and Industry.
Meanwhile, Council Members Jenkins and Emily Koski also released a joint statement Wednesday saying they would propose changing the ordinance rate to $1.21 per mile, as recommended in the state report, while maintaining the city’s per minute rate at 51 cents, and conducting evaluations six months and one year from the implementation date. Both Jenkins and Koski support moving the effective date to July 1.
“This is the only plan to address fare disparities that has been clearly presented to the public and will provide an effective and timely resolution to this issue,” the statement said. “It is time to move forward based on both our intentions and the data currently available, not one or the other.“
News Source : www.startribune.com
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