Yesterday, both the perks of electing democratic socialists into public office and the utility of external agitation by workers were demonstrated when Minnesota legislators passed HF2369, a variant of Senator Omar Fateh's SF2319. The bill, in short, extends minimum pay rates to drivers and finally gives them wrongful termination (or deactivation) protections from both companies.
Fateh—who is a democratic socialist and a card-carrying member of Twin Cities DSA and one of at least five Democratic Socialists of America members in the legislature—salvaged the bill from being scrapped in this year's legislative session with the support of MULDA, the Minnesota Uber/Lyft Drivers Association. Although his version of the bill was much more sweeping and compensatory in nature, the final product here is still substantial for gig drivers. As the Minnesota Reformer puts it:
The bill requires transportation network companies, including Uber and Lyft, to pay drivers a $5 minimum fee plus $1.45 per mile and $0.34 per minute in the seven-county Twin Cities metropolitan area. Drivers in greater Minnesota would be entitled to $1.25 per mile and $0.34 per minute. The minimum rates would increase with inflation.
Drivers would also be entitled to 80% of cancellation fees if they have already departed to pick up a rider as well as $1.25 per mile and $0.10 per minute if the companies charge customers for a “long pick up.”
Drivers would now have actual recourse against companies when it comes to deactivation or termination. Under the new bill they'd be required to have clear rules on what can get a driver sanctioned or deactivated, and they'd have to provide a written explanation for any such sanctions or deactivations—with a guaranteed right to appeal for drivers. Although limited, the bill also opens up the door to paid family and medical leave. Drivers would be able to access these programs if they pay for the premiums to do so.
Unsurprisingly, this bill has Uber and Lyft furious about this. They are urging Governor Tim Walz to veto the bill, with Uber in particular being vocal about the bill. Variously they have argued that “[...]what we’re left with is a bill rushed through in the final hours that will leave hundreds of low-income and disabled riders stranded and thousands of drivers without work.” and that they'd be unable to keep harassers, sexual abusers, and impaired drivers out of their cars if the bill passed. In another particularly funny statement by the company address to drivers, Uber said they would be “vulnerable to becoming employees”—apparently this is intended to be a bad thing? Naturally, they're threatening to leave the state if the bill isn't vetoed—which would probably have a bit more teeth if New York City didn't also have provisions like this with Uber still operating there.
Still, their arguments may hold a bit of weight with the one who counts. Tim Walz has been pretty quiet about whether he'd sign the bill, saying only:
There's a long ways to go yet. We've said all along that this is an economy that needs to be looked at. We are thoughtful on things and I think the thing in the executive branch that folks in the legislatures know but this time of year, kind of have to take into consideration we're responsible for the implementation. So we have questions on a lot of areas that need to be answered before things come to us.
If he does veto it, it will likely be by pocket veto—which, for those unfamiliar, would mean that the session concludes and then Walz refuses to sign the bill, killing it because lawmakers can't come back to try and override it—and will likely come in short order because the session ends today.
Governor Tim Walz has vetoed the Uber/Lyft bill today, stating that while he is broadly supportive of the goals of the bill, it "is not the right bill to achieve these goals". In its place, Walz has issued an executive order which creates a commission to study the rideshare industry and its conditions. That commission's intent will be to make recommendations for a legislative bill in 2024, and it will be comprised of a variety of rideshare workers, state officials, labor leaders, and a few corporate appointees. The veto letter and specific details of Walz's commission can be seen above for the wonkishly-inclined.
This is Walz's first ever veto as governor, and it comes after Uber and Lyft stated they would essentially end service in all markets but the Twin Cities. It's fairly obvious that the threats of the two companies won out over the interests of the people they exploit—despite Walz alleging he was skeptical they'd actually leave the state if the bill was signed.
This is also, obviously, a major disappointment for rideshare workers, who showed up in droves at the state capitol this week to urge Walz to sign the bill. With the bill's veto, it looks like they will continue to face seriously exploitative conditions until at least 2024.
Cancelling their services is an empty threat. Someone willing to be less exploitative would swoop in. They turn the screws so hard because the original owners put themselves in a mountain of debt then passed that debt off to bigger fools a few times. Now the wreckage of venture capital is squeezing blood from stones to satisfy its creditors.
Let them leave and burn. The flight of indebted capital is no threat. It's a blessing.
