Minneapolis Mayor Jacob Frey has vetoed a city ordinance that would have set a minimum wage and other protections for Uber, Lyft and other ride-hailing drivers. Instead, he announced a deal with Uber to pay its drivers at least $15 an hour and $5 per trip in the metro area. Lyft drivers are not included in the deal and will continue to earn less than the city’s minimum wage.
The ordinance was passed by the City Council last week after months of consultation with drivers, city staff and national experts. It would have required ride-hailing companies to pay drivers at least $15 an hour plus expenses, provide paid sick leave and health care subsidies, and allow drivers to form a union. The ordinance was modeled after a similar law in Seattle, which was upheld by a federal appeals court last year.
Many of the drivers are African immigrants who have been demanding fair wages and working conditions. They said they were earning as little as $5 an hour after expenses and faced discrimination and harassment from customers and companies. They formed a group called the App-Based Drivers Association (ABDA) and organized rallies, petitions and strikes to pressure the city to pass the ordinance.
“This is an inexcusable betrayal of Minneapolis workers. It is a slap in the face to the hundreds of drivers who have organized for years to win basic workplace rights,” said Abdi Muse, executive director of ABDA.
Frey said he vetoed the ordinance because it was “legally indefensible” and would have exposed the city to costly litigation from the ride-hailing companies. He said he negotiated a deal with Uber to pay its drivers at least $15 an hour and $5 per trip in the metro area, which he claimed would benefit more than 90% of Uber drivers. He said the deal was “groundbreaking” and “guaranteed” by Uber.
“We are proud to partner with Mayor Frey on this groundbreaking agreement that will guarantee earnings for drivers, no matter how many trips they complete,” said Danielle Burr, head of Uber’s federal affairs.
However, the deal with Uber does not include Lyft drivers, who make up about 40% of the ride-hailing market in Minneapolis. Lyft said it was not part of the negotiations and did not agree to the terms. Lyft drivers will continue to earn less than $15 an hour and will not receive any additional benefits or protections.
“Lyft remains committed to working with the city on a path forward that benefits drivers, riders and the community,” said Lyft spokeswoman Campbell Matthews.
The deal with Uber also does not address other issues that drivers have raised, such as health care subsidies, paid sick leave, union representation, driver safety and customer accountability. The deal is also not legally binding or enforceable by the city or the drivers. It is unclear how Uber will monitor and verify its own compliance with the deal.
“This is not a deal. This is a giveaway to Uber,” said Council Member Phillipe Cunningham, who sponsored the ordinance. He said the deal with Uber was not transparent, enforceable or comprehensive. He said he will try to override the mayor’s veto with a two-thirds majority vote from the City Council.
“We have been fighting for this for a long time. We are not asking for too much. We are asking for dignity, respect and a living wage,” said Mohamed Ibrahim, a driver and leader of the Minnesota Workers Center.
Relevant articles:
– Minneapolis mayor vetoes measure for minimum wage to Uber and Lyft drivers, Associated Press, August 22, 2023
– Minneapolis Mayor Jacob Frey vetoes rideshare minimum wage measure, CBS News, August 22, 2023
– Frey vetoes Minneapolis City Council’s minimum wage ordinance for Uber, Lyft drivers, Twin Cities Pioneer Press, August 22, 2023
– Uber, Lyft Driver Minimum Pay Bill Vetoed by Minneapolis Mayor, Bloomberg Law, August 22, 2023
– Frey vetoes rideshare benefits but announces pay boost for Uber drivers, Star Tribune, August 22, 2023