City Officials Respond to Pay Rule Petition From Drivers for Apps like Uber, Lyft, Juno
New York, NY — In response to a formal rulemaking petition from the Independent Drivers Guild (IDG), New York City’s Taxi and Limousine Commission (TLC) stated it plans to put forward rules on industry-wide for-hire vehicle driver income and pay transparency later this summer. The Commission responded to groundbreaking new pay rules proposed by the IDG, a Machinists Union affiliate which represents and advocates for more than 60,000 app-based drivers in the city, stating that the Commission “is in the midst of analyzing various methodologies and will include the one you proposed in this process.” The city is required to respond to rule petitions within sixty days, either agreeing to initiate rulemaking by a certain date or denying the request. In this case, the city responded that it plans to initiate rulemaking in approximately two months.
“New York City could be the first in the nation to set a livable wage rule that applies to drivers for apps like Uber and Lyft. More than 60,000 New York City families depend on the earnings of app-based drivers, but are struggling under the weight of tens of thousands of dollars in annual expenses as apps take larger and larger cuts. Thousands of drivers with the Guild have been waging a campaign for a livable, minimum pay rate for many months and we are pleased that the TLC plans to act this summer,” said Jim Conigliaro, Jr., founder of the Independent Drivers Guild, which has provided the TLC with information on driver pay and expenses over the course of the last year, including IDG survey data, driver interviews, and input on and participation in TLC surveys.
More than 16,000 drivers signed on to the IDG’s petition, which also has support from labor and community leaders, including the International Association of Machinists, the New York City Central Labor Council, The Black Institute and the New York Immigration Coalition. IDG members have sent nearly 4,000 emails to the city’s Taxi and Limousine Commission urging adoption of the pay protections and run digital ads urging a raise for drivers and recently the New York Daily News and the New York Times editorial boards editorialized in favor of such pay protections. The IDG proposed rules also include a desperately needed raise to the city’s app-based drivers who shoulder tens of thousands of dollars in expenses each year.
“I just filed my taxes and the enormous expenses and commissions brought my total earnings down to $24,000. I’m lucky if i take home minimum wage. We are struggling to get by while the apps continue a race to the bottom, slashing pay and hiking fees. It’s time for the city to stand up for the more than sixty thousand working families like mine who depend on driving for apps for a living,” said Independent Drivers Guild member Tina Raveneau, who drives for Uber and Lyft. “I support my son without any coparenting, and I am crushed monthly by high insurance rates, high company commissions, gas, vehicle maintenance and a weekly rental payment of $425. It’s getting harder and harder to make enough money to sustain a living.”
The IDG’s proposed rules would also protect riders by prohibiting apps from charging riders more than 20 percent over what the driver is paid. It is unclear if the city’s Taxi and Limousine Commission intends to include rider app fees as part of its forthcoming rulemaking, though the commission already regulates rider fares and fees in the taxi sector. Currently, apps can charge passengers more than double what a worker is paid, and the IDG’s report has examples of just that. The IDG’s proposed rules would discourage price gouging and ensure drivers get to keep 80 percent of their earnings, which would return commissions to the rates riders and drivers agreed to before Uber and Lyft changed the fine print to allow for unlimited commissions.
“All working people deserve a livable wage. App-based workers are a large and growing class of Americans being denied this basic right. We are proud to stand in support of our affiliated Independent Drivers Guild, which is fighting to change that. These are landmark rules that would require ride-hail apps like Uber and Lyft to adhere to a minimum, livable pay rate for the very first time. It is a momentous decision that will advance the fight for a ‘sharing economy’ that actually shares,” said Machinists Union International President Robert Martinez Jr.
“The New York City Central Labor Council joins the Machinists Union and the Independent Drivers Guild in demanding an end to the minimum wage loopholes that force drivers to work longer and longer hours and still leave them unable to pay for housing and care for their families,” said Vincent Alvarez, President of the NYC CLC, AFL-CIO. “All workers have the right to a fair day’s pay for a fair day’s work. We support these efforts to secure a livable minimum pay rate for app-based drivers, so that these companies will no longer be able to make enormous profits while getting away with exploiting working people in our city.”
“Immigrant for-hire vehicle drivers – 90% of all such drivers – fuel New York’s five boroughs and our economy. New York City should enact a livable wage for drivers to give 60,000 families the key to unlocking greater access and opportunity,” said Steven Choi, Executive Director of the New York Immigration Coalition.
“Whether you drive a yellow, green, black, or app-based car, you should be on an equal and level pay rate. App-based drivers should not be paid less than other drivers for the same work. All of our city’s drivers should be paid fairly and that starts with equal pay and approving the Independent Drivers Guild’s petition to enact a livable minimum wage for drivers and their families. The TLC, City Council and Mayor need to treat all drivers fairly and ensure pay equity across the entire industry,” said Bertha Lewis, President and Founder of The Black Institute.
Last year, IDG members petitioned for and won a New York City law and a TLC rule which forced Uber and Via to add a tipping option to their apps. In that petition, the IDG noted that further protections were needed to ensure drivers could maintain a dignified living. The Commission responded in agreement, stating “we agree with your position that rules governing tipping are not a substitute for a regulatory scheme that ensures that Drivers earn a livable wage.” Guild members and the TLC have had ongoing discussions on the need for pay protection rules since shortly after the IDG’s launch in 2016 and continuing with the issuance of the IDG’s detailed proposal in November 2017.
A 2017 Independent Drivers Guild (IDG) survey of New York City Drivers found that:
73% of workers who had been in the industry for at least a year reported their financial well being was worse now than had been previously.
73% of Drivers worked more than 10 hours on their most recent shift, with Drivers reporting a median shift of 11 hours and a mean shift of 11.5 hours.
85% of Drivers work at least 30 hours per week and nearly two thirds drive at least 45 hours per week.
56% reported being paid less than $150 before business expenses on their most recent shift.
Workers who lease or rent their vehicle report mean annual expenses of $35,464, and a median of $31,200.
Workers who own their vehicle or have a loan had a mean annual cost of $30,056, and a median of $21,424.
89% reported that being a For-Hire Vehicle (FHV) worker was their main source of income.
57% identified their household income as less than $50,000/year. 22% of respondents reported household earnings of less than $30,000 per year.
56% indicated they care for a dependent under the age of 18.
New York, NY — New York City’s Taxi and Limousine Commission has until Monday, May 21st to decide whether to accept or reject groundbreaking new pay rules proposed by the Independent Drivers Guild, a Machinists Union affiliate which represents and advocates for more than 60,000 app-based drivers in the city. Support for the rules is growing, with more than 16,000 drivers signed on to the petition, along with support from labor and community leaders, including the International Association of Machinists, the New York City Central Labor Council, The Black Institute and the New York Immigration Coalition. IDG members have sent nearly 4,000 emails to the city’s Taxi and Limousine Commission urging adoption of the pay protections and run digital ads urging a raise for drivers and recently the New York Daily News and the New York Times editorial boards editorialized in favor of such pay protections.
The new rules would set the nation’s first minimum pay rate for app-based drivers, while also delivering a desperately needed raise to the city’s app-based drivers who shoulder tens of thousands of dollars in expenses each year. The rules would also protect riders by prohibiting apps from charging riders more than 20 percent over what the driver is paid. Currently, apps can charge passengers more than double what a worker is paid, and the IDG’s report has examples of just that. The IDG’s proposed rule would discourage price gouging and ensure drivers get to keep 80 percent of their earnings, which would return commissions to the rates riders and drivers agreed to before Uber and Lyft changed the fine print to allow for unlimited commissions.
“I just filed my taxes and the enormous expenses and commissions brought my total earnings down to $24,000. I’m lucky if I take home minimum wage. We are struggling to get by while the apps continue a race to the bottom, slashing pay and hiking fees. It’s time for the city to stand up for the more than sixty thousand working families like mine who depend on driving for apps for a living,” said Independent Drivers Guild member Tina Raveneau, who drives for Uber and Lyft. “I support my son without any coparenting, and I am crushed monthly by high insurance rates, high company commissions, gas, vehicle maintenance and a weekly car rental payment of $425. It’s getting harder and harder to make enough money to sustain a living.”
“All working people deserve a livable wage. App-based workers are a large and growing class of Americans being denied this basic right. We are proud to stand in support of our affiliated Independent Drivers Guild, which is fighting to change that. These are landmark rules that would require ride-hail apps like Uber and Lyft to adhere to a minimum, livable pay rate for the very first time. It is a momentous decision that will advance the fight for a ‘sharing economy’ that actually shares,” said Machinists Union International President Robert Martinez Jr.
“The New York City Central Labor Council joins the Machinists Union and the Independent Drivers Guild in demanding an end to the minimum wage loopholes that force drivers to work longer and longer hours and still leave them unable to pay for housing and care for their families,” said Vincent Alvarez, President of the NYC CLC, AFL-CIO. “All workers have the right to a fair day’s pay for a fair day’s work. We support these efforts to secure a livable minimum pay rate for app-based drivers, so that these companies will no longer be able to make enormous profits while getting away with exploiting working people in our city.”
“Immigrant for-hire vehicle drivers – 90% of all such drivers – fuel New York’s five boroughs and our economy. The New York City Council should enact a livable wage for drivers to give 60,000 families the key to unlocking greater access and opportunity,” said Steven Choi, Executive Director of the New York Immigration Coalition.
“Whether you drive a yellow, green, black, or app-based car, you should be on an equal and level pay rate. App-based drivers should not be paid less than other drivers for the same work. All of our city’s drivers should be paid fairly and that starts with equal pay and approving the Independent Drivers Guild’s petition to enact a livable minimum wage for drivers and their families. The TLC, City Council and Mayor need to treat all drivers fairly and ensure pay equity across the entire industry,” said Bertha Lewis, President and Founder of The Black Institute.
The city is required to respond to rule petitions within sixty days, either agreeing to grant the petition and initiate rulemaking or denying the request. While the TLC enforces certain protections for driver pay and to prevent consumer price gouging in the taxi industry, there have been no such protections in the app-based for hire vehicle industry.
Last year, IDG members petitioned for and won a New York City law and a TLC rule which forced Uber and Via to add a tipping option to their apps. In that petition, the IDG noted that further protections were needed to ensure drivers could maintain a dignified living. The Commission responded in agreement, stating “we agree with your position that rules governing tipping are not a substitute for a regulatory scheme that ensures that Drivers earn a livable wage.” Guild members and the TLC have had ongoing discussions on the need for pay protection rules since shortly after the IDG’s launch in 2016 and continuing with the issuance of the IDG’s detailed proposal in November 2017.
A 2017 Independent Drivers Guild (IDG) survey of New York City Drivers found that:
73% of workers who had been in the industry for at least a year reported their financial well being was worse now than had been previously.
73% of Drivers worked more than 10 hours on their most recent shift, with Drivers reporting a median shift of 11 hours and a mean shift of 11.5 hours.
85% of Drivers work at least 30 hours per week and nearly two thirds drive at least 45 hours per week.
56% reported being paid less than $150 before business expenses on their most recent shift.
Workers who lease or rent their vehicle report mean annual expenses of $35,464, and a median of $31,200.
Workers who own their vehicle or have a loan had a mean annual cost of $30,056, and a median of $21,424.
89% reported that being a For-Hire Vehicle (FHV) worker was their main source of income.
57% identified their household income as less than $50,000/year. 22% of respondents reported household earnings of less than $30,000 per year.
56% indicated they care for a dependent under the age of 18.
The Independent Drivers Guild is an affiliate of Machinists Union District 15 of app-based drivers. We are Uber, Lyft, Via, Juno workers united for a fair for-hire vehicle industry.
New York, NY — New York City’s Taxi and Limousine Commission has until Monday, May 21st to decide whether to accept or reject groundbreaking new pay rules proposed by the Independent Drivers Guild, a Machinists Union affiliate which represents and advocates for more than 60,000 app-based drivers in the city. Support for the rules is growing, with more than 16,000 drivers signed on to the petition, along with support from labor and community leaders, including the International Association of Machinists, the New York City Central Labor Council, The Black Institute and the New York Immigration Coalition. IDG members have sent nearly 4,000 emails to the city’s Taxi and Limousine Commission urging adoption of the pay protections and run digital ads urging a raise for drivers and recently the New York Daily News and the New York Times editorial boards editorialized in favor of such pay protections.
The new rules would set the nation’s first minimum pay rate for app-based drivers, while also delivering a desperately needed raise to the city’s app-based drivers who shoulder tens of thousands of dollars in expenses each year. The rules would also protect riders by prohibiting apps from charging riders more than 20 percent over what the driver is paid. Currently, apps can charge passengers more than double what a worker is paid, and the IDG’s report has examples of just that. The IDG’s proposed rule would discourage price gouging and ensure drivers get to keep 80 percent of their earnings, which would return commissions to the rates riders and drivers agreed to before Uber and Lyft changed the fine print to allow for unlimited commissions.
“I just filed my taxes and the enormous expenses and commissions brought my total earnings down to $24,000. I’m lucky if I take home minimum wage. We are struggling to get by while the apps continue a race to the bottom, slashing pay and hiking fees. It’s time for the city to stand up for the more than sixty thousand working families like mine who depend on driving for apps for a living. I support my son without any coparenting, and I am crushed monthly by high insurance rates, high company commissions, gas, vehicle maintenance and a weekly car rental payment of $425. It’s getting harder and harder to make enough money to sustain a living.”
– Tina Raveneau, Uber and Lyft driver, Independent Drivers Guild member
“All working people deserve a livable wage. App-based workers are a large and growing class of Americans being denied this basic right. We are proud to stand in support of our affiliated Independent Drivers Guild, which is fighting to change that. These are landmark rules that would require ride-hail apps like Uber and Lyft to adhere to a minimum, livable pay rate for the very first time. It is a momentous decision that will advance the fight for a ‘sharing economy’ that actually shares,”
– Robert Martinez Jr., Machinists Union International President
“The New York City Central Labor Council joins the Machinists Union and the Independent Drivers Guild in demanding an end to the minimum wage loopholes that force drivers to work longer and longer hours and still leave them unable to pay for housing and care for their families. All workers have the right to a fair day’s pay for a fair day’s work. We support these efforts to secure a livable minimum pay rate for app-based drivers, so that these companies will no longer be able to make enormous profits while getting away with exploiting working people in our city.”
– Vincent Alvarez, President of the NYC CLC, AFL-CIO.
“Immigrant for-hire vehicle drivers – 90% of all such drivers – fuel New York’s five boroughs and our economy. The New York City Council should enact a livable wage for drivers to give 60,000 families the key to unlocking greater access and opportunity.”
– Steven Choi, Executive Director of the New York Immigration Coalition
“Whether you drive a yellow, green, black, or app-based car, you should be on an equal and level pay rate. App-based drivers should not be paid less than other drivers for the same work. All of our city’s drivers should be paid fairly and that starts with equal pay and approving the Independent Drivers Guild’s petition to enact a livable minimum wage for drivers and their families. The TLC, City Council and Mayor need to treat all drivers fairly and ensure pay equity across the entire industry,”
– Bertha Lewis, President and Founder of The Black Institute.
The city is required to respond to rule petitions within sixty days, either agreeing to grant the petition and initiate rulemaking or denying the request. While the TLC enforces certain protections for driver pay and to prevent consumer price gouging in the taxi industry, there have been no such protections in the app-based for hire vehicle industry.
Last year, IDG members petitioned for and won a New York City law and a TLC rule which forced Uber and Via to add a tipping option to their apps. In that petition, the IDG noted that further protections were needed to ensure drivers could maintain a dignified living. The Commission responded in agreement, stating “we agree with your position that rules governing tipping are not a substitute for a regulatory scheme that ensures that Drivers earn a livable wage.” Guild members and the TLC have had ongoing discussions on the need for pay protection rules since shortly after the IDG’s launch in 2016 and continuing with the issuance of the IDG’s detailed proposal in November 2017.
A 2017 Independent Drivers Guild (IDG) survey of New York City Drivers found that:
73% of workers who had been in the industry for at least a year reported their financial well being was worse now than had been previously.
73% of Drivers worked more than 10 hours on their most recent shift, with Drivers reporting a median shift of 11 hours and a mean shift of 11.5 hours.
85% of Drivers work at least 30 hours per week and nearly two thirds drive at least 45 hours per week.
56% reported being paid less than $150 before business expenses on their most recent shift.
Workers who lease or rent their vehicle report mean annual expenses of $35,464, and a median of $31,200.
Workers who own their vehicle or have a loan had a mean annual cost of $30,056, and a median of $21,424.
89% reported that being a For-Hire Vehicle (FHV) worker was their main source of income.
57% identified their household income as less than $50,000/year. 22% of respondents reported household earnings of less than $30,000 per year.
56% indicated they care for a dependent under the age of 18.
##
CONTACT: Email press@drivingguild.org with questions or to request interview.
The Independent Drivers Guild is an affiliate of the International Association of Machinists and Aerospace Workers and represents and advocates for more than 60,000 app-based drivers in New York City. We are Uber, Lyft, Juno, and Via drivers united for a fair for-hire vehicle industry.
New York, NY — On Monday morning, more than 300 members of the Independent Drivers Guild marched on City Hall to protest City Council bill Intro 838. The app-based drivers caravanned from Brooklyn to City Hall in a funeral procession in hopes of burying the bill Intro 838, and picketed outside City Hall chanting the message: Kill the Bill. The bill, sponsored by For -Hire Vehicle committee Chairman Ruben Diaz Sr., singles out app-based for-hire vehicle drivers for yet another tax and takes away their right to work with multiple companies. The IDG held a press conference on the steps of City Hall directly prior to the City Council’s hearing on the bill at 9:30 AM. The Guild also published a strongly worded op-ed on Thursday and launched a digital ad campaign on Friday that is running on Facebook and on the sites of major media outlets, like the New York Times, New York Daily News, and New York Post.
The Guild’s aggressive response to the bill and large presence did not go unnoticed by city officials. Chairman Diaz was confronted by hundreds of IDG members protesting his bill when he arrived at City Hall for the hearing. Mayor Bill de Blasio’s administration announced its opposition to the proposal with the city’s Taxi and Limousine Commissioner voicing opposition to the bill’s key provisions, noting the financial burden they would create for drivers.
Intro 838 creates a new tax-to-work scheme that would cost working families $130 million per year – a sum struggling drivers cannot afford on top of existing fees and expenses. The bill would also prohibit drivers from driving for more than one company or app, a move that would create congestion and delays for riders as well as longer shifts and more unpaid down time for drivers. With such a forced choice, drivers would flock to the app with the largest market share — so the bill would also create an effective monopoly for Uber.
“Lawmakers are waging a war on professional drivers, but we are not going to take it any more. The endless taxes must stop,” said Guild member Aziz Bah, who has been driving for apps including Uber for four years to support his family.
“Like thousands of immigrants in this city, I drive to support my family, including my wife and my six children. But it has become harder and harder to make ends meet. Instead of helping, politicians add more taxes we cannot afford and are trying to block us from working for more than one company,” said Pedro Acosta, an immigrant from the Dominican Republic who has been driving professionally for 20 years and driving for Uber for 5 years.
“The Diaz bill’s one app rule would force us all to be a slave to one master,” said IDG member Michele Dottin, a single mother who lives in Brooklyn. “Forbidding us from working for multiple apps will mean even longer days as we face more unpaid down time between fares. We’re already averaging over 11.5 hours per shift. This bill will have us sleeping in our cars. Our families won’t even recognize us.”
“This $2,000 fee is nothing more than a $130 million annual pay-to-work tax on working poor, immigrant families — without any justification and without regard to its impact on individuals, families or consumers. The bill’s one-boss rule further poses a huge threat to jobs and economic security. Ride-hail apps are famous for slashing pay with no notice and firing hundreds of workers every month. Preventing drivers from working for more than one company means that when a driver is fired or mistreated, they will have no option to provide for their families.” said IDG founder Jim Conigliaro, Jr. “ALL DRIVERS across this industry — Livery, Medallion, Black Car and App-Based — are hurting. Instead of disingenuously pitting one set of the industry’s drivers against another — which is all this bill is doing — we should be working together on fair proposals that not only seek parity but that help all drivers, all immigrants, all working poor.”
The Guild’s prepared testimony from IDG founder Jim Conigliaro, Jr. is here: http://idg.ms/Intro838Jim.
In March, the IDG formally petitioned New York City to enact a livable minimum wage for app-based for-hire vehicle drivers, which would increase pay rates by 37 percent, and to discourage price gouging in the industry, by capping rider app fees at 20 percent, which would also guarantee drivers 80 percent of the fare. Nearly16,000 drivers signed the petition in support of the proposal. The city is required to decide on the proposed rule by May 21st.
LEGISLATIVE REFERENCE: Introductory No. 838 (by Council Member Diaz)
TITLE: A Local Law to amend the administrative code of the city of New York, in relation to the licensing and regulation of app-based for-hire transportation and services.
SUMMARY: This legislation attempts to create a new category of for-hire vehicles and services to be licensed and regulated by the Taxi and Limousine Commission, which would be known as app-based for-hire vehicles and app-based for-hire services, and sets out several licensing requirements, including applicable licensing fees and restrictions on operation of said vehicles and services. Specifically, this bill would require a $2,000 annual licensing fee to app-based vehicle owners and prohibit any worker who drives for an app-based company (such as Uber, Lyft, Juno, Via, etc.) from driving for more than one app-based platform or any other transportation service including a black car, livery or medallion service.
Testimony by James Conigliaro, Jr, Founder & President, Independent Drivers Guild
Before the Committee on For-Hire Vehicles
April 30, 2018
Good Morning Chairman Diaz, members of the Committee on For-Hire Vehicles. My name is James Conigliaro, Jr., I am the Founder and President of Independent Drivers Guild. I am also joined here today by Ryan Price, IDG’s Executive Director and Muhammed Barlas, a member of IDGs Board of Directors.
The Independent Drivers Guild is a nonprofit affiliate of the International Association of Machinists and Aerospace Workers (IAMAW) that represents 65,000 working drivers throughout the for-hire vehicle industry. The IAMAW has been the only union to successfully organize black car workers in New York City, and has been doing so for twenty years. Ninety percent of our members are immigrants fighting for the American dream, representing 190 countries; they are young entrepreneurs, parents, seniors – the working poor. We are Uber, Lyft, Via, Juno workers united for a fair for-hire vehicle industry.
Council Members, I want to apologize upfront if my tone, at times, appears contentious. But we are beyond frustrated and taken aback — not only by the unjust treatment of our drivers which we will get to, but by the questionable process by which you are taking up these very serious matters that will impact the livelihoods of thousands of hard working immigrant families.
Intro 838 was only introduced last Wednesday, April 25th and a hearing is being held three (3) business days later. Then on Thursday afternoon several more bills are added to the agenda, each bill dealing with very serious and complex matters, each of which deserving of their own separate hearing. Now, here we and others are having very limited time — as you very well know — to deal with seven (7) matters of significant public policy import. Council Members, is this really how we want to deal with these important issues? The challenges facing this industry are real, but rushing through ill- conceived legislation will only worsen the situation. Let’s get it right. So much is at stake.
In the interest of time and as to not be distracted from the most destructive proposal, I will focus the majority of my testimony on Intro 838 (by Council Member Diaz) and look forward to taking questions on the other bills, and talking and working with Council Members Rodriguez, Levin, Lander on their very important proposals.
While the IDG agrees with the need for an improved regulatory system for app-based transportation services, especially with regard to driver pay and protections, we stand in strong opposition to this Intro 838 as it will only serve to harm the more than 65,000 app-based drivers and their families while putting their livelihoods in serious jeopardy.
Specifically, this bill would require a $2,000 annual licensing fee to app-based vehicle owners and prohibit any worker who drives for an app-based company (such as Uber, Lyft, Juno, Via, etc.) from driving for more than one app-based platform or any other transportation service including a black car, livery or medallion service.
Both of these provisions combined will force a significant amount of drivers out of the industry, into unbearable debt and abject poverty and God help us in how they deal with and overcome these unbearable burdens for them and their families.
It already has been well publicized that drivers are struggling to make minimum wage in a 12-hour work day after years exploitation and pay cuts by owners. It already has been well publicized that the increased stress and burdens that have been placed on drivers have caused some app-based drivers to resort to suicide right outside the gates of City Hall. Therefore, requiring an additional $2,000 annual fee on struggling drivers would only be callous and add insult to injury.
This $2,000 fee is nothing more than a $130 million annual pay-to-work tax on working poor, immigrant families — without any justification and without regard to its impact on individuals, families or consumers. $2,000 is equivalent to a full month’s pay for many drivers. Furthermore, there appears to be no other public policy purpose behind such a fee other than to punish workers for their career choice. The Taxi and Limousine Commission (TLC) has not requested such a fee. So, we question the real and legitimate public policy purpose behind this legislation.
Not only is it unprecedented, no driver — whether yellow, green, livery or black car — pays a $2,000 fee to operate their vehicle. The annual TLC fees for vehicles are either $550 per year for Medallion Owners or $550 every two years for Livery and Black Cars, including app-based drivers. In addition, the costs of the barrier to entry for all drivers to get a license, including app-based drivers, is already at least $769. That’s the facts. ALL DRIVERS across this industry — Livery, Medallion, Black Car and App-Based — are hurting. Instead of disingenuously pitting one set of the industry’s drivers against another — which is all this bill is doing — we should be working together on fair proposals that not only seek parity but that help all drivers, all immigrants, all working poor.
We call on this Committee and the Council to substantially reduce or eliminate ALL TLC driver fees. We strongly support eliminating all fees for all drivers or decreasing the fees for Medallion Owner-Operators to $550 every two years so as the entire industry is treated equally. That would be the fair and honest thing to do.
With regard to the bill’s provision that prohibits all for-hire vehicle workers from driving for more than one app-based company or any other transportation service like black car, livery, green, or yellow (referred to herein as the one-boss rule) — this provides undue power to employers, medallion owners, base-owners, and app-based companies and significantly weakens drivers’ leverage. The vast majority of for-hire vehicle workers use multiple platforms and services in order to provide for their families, and to hedge their support for specific companies. Even many green and yellow medallion drivers are Uber and Lyft drivers as are black and livery services drivers.
The one-boss rule further poses a huge threat to jobs and economic security. Ride-hail apps are famous for treating drivers as expendable, like slashing pay with no notice and firing hundreds of workers every month. Preventing drivers from working for more than one company means that when a driver is fired or mistreated, they will have no option to provide for their families. Forget severance pay or unemployment checks as app-based drivers are deemed “independent contractors”. Under the one-boss rule, they will be forced to pay another month’s worth of taxes for the privilege of working 12-hour shifts under a different boss.
This will also hurt consumers, especially those in the outer boroughs, as competition will decrease, resulting in higher costs and longer wait times. The one-boss rule also has the dangerous possibility of harming smaller and family-owned businesses while providing a monopoly to Uber as upwards of 80% of app-based drivers are signed up with Uber and would likely stay with this app-based company if this bill was passed. This legislation, simply put, misses the mark and gets it wrong. Recent technology, specifically app-based technology, has transformed the entire for-hire vehicle industry and thus reform and parity is needed on a grander scale. Professional drivers are in desperate need for livable pay, benefits, and workplace protections. Let’s work together and get it right.
With regard to the other bills on the agenda today, which again deserve more time and a separate hearing, here are our thoughts.
Pay Equity and Protections: We look forward to working with Council Member Lander on his legislation and appreciate his efforts on this front. On March 30th, 2018, with the support of almost 16,000 workers who signed a petition, the Independent Drivers Guild submitted a formal rulemaking petition for the Taxi and Limousine Commission to regulate driver pay in an effort to enable our members to make a livable wage in an eight hour day. The proposed rules would reduce their time on the road and ensure that government taxes and company fees would not be allowed to be taken from the driver’s pay, increase pay for workers who choose to operate a Wheelchair Accessible Vehicle, disincentivize price gouging, and give workers more basic workplace rights. We feel that before any other regulations, the basic protection of minimum pay is essential. The TLC
has until May 21st, 2018 to respond.
Cap on Driver Licenses, Not Vehicles: We look forward to working with Council Member Levin on his legislation, Intro 144. The most overwhelmingly supported action by our members that the City Council has the authority to accomplish is to limit the number of workers entering the industry as opposed to placing a cap on vehicles. A cap on vehicles provides more power to owners and companies, while limiting the workforce provides power and value to the drivers. We support a limit to the number of newly issued Universal Drivers Licenses based on the total and expected number of for-hire and taxi trips. Limiting the labor pool will require all companies to compete to keep drivers working for them, meaning the competition shifts away from a race to the bottom on
driver pay, and shifts to providing benefits.
Wheelchair Accessible Vehicles: We look forward to working with Council Member Rodriguez, as we have so well in the past, on his legislation, Intro 855. As described in our public comment to the TLC, our membership staunchly opposes outright percentage requirements for Wheelchair Accessible Vehicles. Costs for conversion or purchase for Wheelchair Accessible Vehicles should not be passed on to workers. It is essential that the transition to a more accessible industry incentivizes preferred behavior for it to be successful, in this case purchasing and operating a Wheelchair Accessible Vehicle. We propose a three-part plan for a more equitable and comprehensive transition to an accessible industry.
1. Regulate an increased pay rate for Wheelchair Accessible Vehicle operators as proposed in IDG’s rulemaking petition currently before the city’s Taxi and Limousine Commission.
2. Mandate enhanced WAV classes.
3. Implement a For-Hire Vehicle Improvement Fund similar to the Taxi Improvement Fund, to subsidize costs for conversions and purchases of accessible vehicles.
Thank you Chairman Diaz and Council Members, we look forward in the weeks ahead to talking and working with all of you on all these important matters and we will be happy to take your questions.
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Formal Rulemaking Petition Requires City To Decide in Sixty Days
More than 15,000 Drivers Sign Petition Calling for City to Close the Minimum Wage Loophole, Raise Pay and End Price Gouging
New York, NY — Today, the Independent Drivers Guild (IDG) is formally petitioning New York City to enact a livable minimum wage for app-based for-hire vehicle drivers, which would increase pay rates by 37 percent, and to prohibit price gouging in the industry, by capping rider app fees at 20 percent. The IDG, a Machinists Union affiliate which represents and advocates for more than 60,000 of these drivers, submitted the proposed rule today to the city’s Taxi and Limousine Commission (TLC), the agency responsible for licensing and regulating New York City’s taxis and for-hire vehicles. The IDG’s petition advocating for the proposal has garnered support from more than 15,000 signers. The IDG will continue its campaign for these pay protections by launching calls and emails to city officials as well as promoting the cause with flyers and ads.
Recently, MIT researchers found that a significant portion of Uber and Lyft Drivers make less than minimum wage after expenses. Even in New York City, where nine in ten Drivers drive as their household’s main source of income, IDG survey data shows that many Drivers make less than minimum wage after expenses.
“After years of pay cuts and exploitation, New York City’s ride-hail drivers can’t make ends meet and many are making less than minimum wage after expenses. New York has a long history of standing up for working families and must not allow these apps to violate our values. We are calling on the city to close this minimum wage loophole and enact a livable minimum pay rate for app-based drivers. We cannot allow multi-billion dollar corporations to profit off the labor of New York workers without paying them a fair rate,” said IDG founder Jim Conigliaro, Jr.
“We are making much less than we were just a few years ago — and companies like Uber and Lyft are pocketing more. To try to make up the difference, drivers are forced to work longer and longer hours, but we are still unable to make ends meet,” said app-based driver and IDG member Aziz Bah. “I am an immigrant from Senegal supporting my family, including two children. I came to this country to work hard and make a better life for my family, but now it seems like the promise and protections America is known for simply don’t apply to us.”
The city is required to respond to rule petitions within sixty days, either agreeing to grant the petition and initiate rulemaking by a specific date or denying the request. While the TLC enforces certain protections for driver pay and to prevent consumer price gouging in the taxi industry, there have been no such protections in the app-based for hire vehicle industry.
Last year, IDG members petitioned for and won a New York City law and a TLC rule which forced Uber and Via to add a tipping option to their apps. In that petition, the IDG noted that further protections were needed to ensure drivers could maintain a dignified living. The Commission responded in agreement, stating “we agree with your position that rules governing tipping are not a substitute for a regulatory scheme that ensures that Drivers earn a livable wage.” Guild members and the TLC have had ongoing discussions on the need for pay protection rules since shortly after the IDG’s launch in 2016 and continuing with the issuance of the IDG’s detailed proposal in November 2017.
A 2017 Independent Drivers Guild (IDG) survey of New York City Drivers found that:
73% of workers who had been in the industry for at least a year reported their financial well being was worse now than had been previously.
73% of Drivers worked more than 10 hours on their most recent shift, with Drivers reporting a median shift of 11 hours and a mean shift of 11.5 hours.
85% of Drivers work at least 30 hours per week and nearly two thirds drive at least 45 hours per week.
56% reported being paid less than $150 before business expenses on their most recent shift.
Workers who lease or rent their vehicle report mean annual expenses of $35,464, and a median of $31,200.
Workers who own their vehicle or have a loan had a mean annual cost of $30,056, and a median of $21,424.
89% reported that being a For-Hire Vehicle (FHV) worker was their main source of income.
57% identified their household income as less than $50,000/year. 22% of respondents reported household earnings of less than $30,000 per year.
56% indicated they care for a dependent under the age of 18.
The IDG proposed rule includes:
1) A minimum pay rate that would raise wages by 37 percent for New York City app based drivers. This rate would apply across all platforms including Uber, Lyft, Juno, and Via.
According to a 2017 survey, the average work day for drivers is more than 11 hours, which is 37 percent above 8 hours: the basic right of a maximum work day. The Guild proposed a minimum pay scale based on a 37 percent increase over 2017 rates to promote safe driving and return driver compensation to be nearer the rates offered in the past. The Guild proposal also includes a premium pay rate for drivers of Wheelchair Accessible Vehicles to incentivize the transition to such vehicles and to offset the increased costs.
Here is a side by side comparison of a sample five mile, thirty minute ride in New York City in 2013, today and under the IDG’s proposal:
UberX
Driver Pay
Passenger Fare*
2013
$20.25
$28.50
2018
$14.68
Varies**
IDG Proposal
$20.11
$27.42
*Includes taxes and company fees
**Passenger fare is no longer bound to actual mileage or minutes traveled.
2) Prohibit price gouging. Currently, apps can charge passengers more than double what a worker is paid, and the IDG’s report has examples of just that. The IDG’s proposed rule would prohibit Uber, Lyft and other companies from charging passengers more than 20 percent over what the worker is paid. This would prevent price gouging and return commissions to the rates riders and drivers agreed to previously.
3) Return trip to New York City pay (known in the industry as “deadhead pay”)—drivers must be paid for the trip back to New York City while no passenger is in the car. Failure to pay drivers for return trips is unfair and costly to workers and puts workers’ compensation insurance and other insurance coverage in jeopardy.
The IDG’s rule petition comes as New York lawmakers are considering numerous proposals to increase taxes and fees on the ride-hail industry in attempt to fund public transit, reduce congestion and update regulations. The IDG rule would prevent apps from passing those taxes and fees on to already struggling drivers, incentivize workers to operate wheelchair accessible vehicles, and reduce driver’s time on the road which would reduce congestion.
The IDG is also calling on New York lawmakers to limit the licensing of new for-hire vehicle drivers to address the glut of drivers, which has outpaced demand, led to an increase in unpaid down time, and contributed to congestion concerns. Limiting the number of drivers in a way that maintains quick response times but minimizes unpaid down time would allow existing drivers a better opportunity to make a living and right-size the fleet. The Guild opposes proposals to cap the number of for-hire vehicles because such a cap would cause vehicle and operation costs to skyrocket for workers.
In addition, the IDG is working to ensure members are protected by basic benefits. While the Guild opposes any new taxes that could further harm its members, if state lawmakers insist on a new rider surcharge, the Guild is demanding that it provide for a benefits fund for workers. Such a fund would give drivers access to benefits that would protect the public health and make our streets safer, such as paid sick leave, health, or vision plans.
“New York is positioned to lead the country and create a national model for fair working conditions for contractors, but there are only so many surcharges that can be put on the shoulders of our members and be supported. Any new surcharge must provide benefits to workers,” said Ryan Price, IDG’s Executive Director.
The Independent Drivers Guild is an affiliate of the International Association of Machinists and Aerospace Workers and represents and advocates for more than 60,000 app-based drivers in New York City.
Comment from Independent Drivers Guild founder Jim Conigliaro, Jr.:
We are pleased to see Washington state’s SEIU Local 775 and Uber’s Mr. Khosrowshahi collaborate on principles toward getting workers the benefits they deserve.
In New York, the Independent Drivers Guild has led discussions with city and state officials about the creation of a benefits fund for drivers through company contributions or a surcharge. Such a fund would give drivers access to benefits that would protect the public health, save public spending, and make our streets safer, such as paid sick leave, health or vision plans.
We call on Mr. Khosrowshahi to support the Guild’s ongoing efforts to establish a benefits fund in New York as we work to create a model for more fair working conditions for contract workers.
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The Guild is an IAMAW affiliate representing more than 60,000 New York City app-based drivers. We are Uber, Lyft, Via and Juno workers united for a fair for-hire vehicle industry.
New IDG Analysis Exposes How Ride Hail Apps Are Gouging Riders and Drivers
New York, NY — After years of pay cuts, New York’s ride-hail drivers are finding it harder and harder to make ends meet. The Independent Drivers Guild, a Machinists Union affiliate which represents and advocates for more than 60,000 of these drivers, has garnered over 8,000 signatures on a petition to increase driver pay and end price gouging in the ride hail industry.
The Guild also released a new analysis of driver pay which found that drivers are making significantly less than they were just a few years ago — and companies are pocketing more. The Guild also found that drivers are working longer and longer hours in an attempt to make up the difference, but are still unable to make ends meet. The Guild report proposes corrective policies to end price gouging and raise driver compensation by 37 percent to levels to promote safe driving and bring income in line with prior pay rates.
“After offering attractive rates at the outset, Uber and Lyft repeatedly reduced driver pay and hiked their cut of each fare, violating and voiding rider and driver agreements again and again. They have slashed the earning potential for drivers dramatically and redirected the profits from New Yorkers’ labor out of our community and into the coffers of privately held multinational corporations,” said Ryan Price, Executive Director of the Independent Drivers Guild.
“Uber and Lyft really pulled a bait and switch on riders and drivers alike. Riders are being overcharged and drivers who already invested their savings and took out loans to join the industry have been left with little choice but to work longer and longer hours to try to make ends meet. Action is needed for the protection of our community and the safety of our streets,” said Sohail Rana, a driver and member of the Guild’s Pay Organizing Committee.
A recent Independent Drivers Guild (IDG) survey of New York City drivers found that 73 percent of workers who had been in the industry for at least a year reported their financial well being was worse now than had been previously and 73 percent of drivers worked more than 10 hours on their most recent shift.
More than 8,000 drivers have signed on to a petition in support of the three major tenets of the Guild’s proposal:
1. A minimum pay raise for New York City drivers of 37 percent across all platforms including Uber, Lyft, Juno, and Via. That would make the pay rates for UberX minimally: $2.3526 per trip, $1.6145 per mile, $0.3229 per minute.
Currently, drivers’ mean work day of 11 hours is 37 percent above 8 hours: the basic right of a maximum work day. A minimum pay scale based on a 37 percent increase over current rates would also return driver compensation to be nearer the rates offered a few years ago.
Here is a side by side comparison of a sample five mile, thirty minute Uber ride in New York City in 2013, today and under the IDG’s proposal:
Rider Pays
Driver Pay
2013
$28.50
$20.25
2017
Varies*
$14.68
IDG Proposal
$27.42
$20.11
*Passenger fare is no longer bound to actual mileage or minutes traveled.
2. A maximum commission. Currently, apps can charge passengers more than double what a worker is paid, and the Guild’s report has examples of just that. Uber and other companies must not charge passengers over 25 percent more than the worker is paid. This would prevent price gouging and return commissions to the maximum rates previously detailed in user agreements.
3. Return trip to NYC pay (known in the industry as “deadhead pay”)—drivers must be paid for the trip back to New York City while no passenger is in the car. Failure to pay drivers for return trips is unfair and costly to workers and puts workers’ compensation insurance and other insurance coverage in jeopardy.
The Guild’s pay proposal comes on the heels of its victory winning a tipping option for all for hire vehicle drivers in New York City. As a first step to addressing years of pay cuts, members of the Independent Drivers Guild organized and won a New York City law and a Taxi and Limousine Commission rule which forced Uber, Via and all black car companies to offer a tipping option to their apps or other payment methods. The Guild’s proposed rule was greenlighted by the city in April 2017 and by the end of July Uber added a tipping option to the app for drivers in New York City (its largest U.S. market) and across the nation. In the Guild’s tipping rule proposal, the IDG also called for broader pay protection rules and the city’s Taxi and Limousine Commission noted its agreement that regulatory pay protections were needed in its official response.
Since its launch in May 2016, drivers with the Guild have won important protections and app improvements. Ongoing efforts include an open enrollment outreach campaign to help drivers sign up for health coverage as well as efforts to improve restroom access for drivers in Manhattan and at area airport lots.
Drivers who wish to learn more about the IDG can visit DrivingGuild.org or text DRIVE to 64336 to learn more (msg and data rates may apply).
The Independent Drivers Guild is a Machinists Union affiliate representing more than 60,000 app-based drivers in New York City. We are Uber, Lyft, Via, and Juno workers united for a fair for-hire vehicle industry.
New York, NY — New York State Assembly Member Robert Rodriguez and the Independent Drivers Guild (IDG) are calling for the state to launch a full investigation into ride-hail app Lyft’s billing and payment practices on interstate trips. In a letter to New York State Attorney General Eric Schneiderman and Executive Deputy Commissioner Nonie Manion of New York’s Department of Taxation and Finance, Assembly Member Robert Rodriguez requested the investigation, writing that, “Lyft appears to have engaged in a large-scale deception of the very drivers and customers it claims to benefit.”
New York State’s sales tax is only supposed to be charged to passengers for rides that begin and end in New York State. However, IDG members who drive for Lyft found that the company is improperly deducting this charge as well as the Black Car Fund surcharge (BCF) from their pay on interstate trips originating in New York City. When IDG members notified Lyft of the two wrongful charges, totaling 11.4% of the fare, company representatives claimed these were not taxes but two other administrative costs that happen to mimic the rates of the NYS sales tax (8.875% in New York City) and the BCF (2.5% for the injured workers’ compensation and safety fund). At least 16,000 IDG members drive for Lyft in a given week and the service completes about 60,000 New York City trips each day per the latest TLC data from March 2017.
“On behalf of the hundreds of thousands of New Yorkers affected by Lyft’s tax scam, I am calling for a full investigation into the company’s practices with regard to its billing of interstate trips,” said NYS Assembly Member Robert Rodriguez, who represents Assembly District 68, comprising East Harlem and Randalls and Wards Islands. “New York must act swiftly to stop this deceit and return these ill-gotten gains to drivers and consumers. When businesses add fake taxes to wages and services, they are not just cheating workers and consumers out of hard earned dollars, they are undermining the public trust. Lyft must be held accountable”
“This is an egregious and deliberate tax scam that amounts to wage theft affecting thousands of our members. By disguising these pay deductions as state taxes, Lyft willfully deceived drivers in order to rob them of their earnings and further enrich the company,” said Ryan Price, Executive Director of the IDG, a Machinists Union affiliate which represents and advocates for 50,000 ride hail drivers in New York City. “We urge riders and workers to sign our petition calling for new rules to protect New Yorkers from this exploitation once and for all, and call on Lyft to come to the table to negotiate with our members for basic rights and a dialogue with management.”
“We are calling on New York State to investigate the taxation and interstate billing practices of Lyft, Uber, Juno and other ride hail apps as well,” added Price. “From shady tax schemes to upfront pricing, Uber, Lyft and Juno all seem to be deploying underhanded accounting tactics that are robbing hard working drivers and riders of millions in hard earned wages. Assembly Member Rodriguez has been fighting for consumer protections to combat deceptive business practices for years and we are thankful to him for standing with New York’s drivers and consumers.”
In April, the Independent Drivers Guild called on New York City regulators to enact pay protections across the ride hail industry, including to protect driver pay from taxes and surcharges and to grant drivers the right to appeal when a company underpays or steals money from a worker for a completed service. The Guild’s petition for these rules has garnered more than 800 signers. IDG members sent the TLC over 1500 emails calling for these pay protections and 60 members attended an April TLC hearing to demand these protections.
Nine in ten New York City ride-hail drivers are immigrants and most IDG members report driving full time. The majority of our members report household incomes of less than $50,000 per year before expenses (gas, lease, insurance and licensing fees etc.) all while working to support their families in one of the most expensive areas of the country.
The New York State sales tax and BCF surcharge are listed as “surcharge” deductions from the driver’s pay on interstate trips — the exact same way they are listed on New York City to New York City trips:
The New York State sales tax and BCF surcharge are listed the exact same way on New York City to New York City trips:
The Guild is an IAMAW affiliate representing app-based drivers. We are Uber, Lyft, Via, Juno, Gett workers united for a fair for-hire vehicle industry.
For any media inquiries, please contact Moira Muntz at press@drivingguild.org
