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Posts Tagged ‘drivers’

Uber admits underpaying New York drivers approximately $45 million

Thursday, May 25th, 2017

Uber’s gotta pay—with interest.

The infamous ride-sharing app admitted Tuesday that it had been underpaying its New York drivers since November 2014 due to an accounting error that took out more than the company’s 25 percent commission, the Wall Street Journal first reported.

Uber typically takes its commission after taxes and fees are deducted from a driver’s fare, but the accounting glitch that took it out beforehand resulted in a larger pay deduction for drivers. Uber’s terms of service did not specify that it took commissions out of gross fare earnings.

To make things right, Uber is repaying an average of $900 per driver with interest, which is estimated to cost a total of at least $45 million. One driver is receiving a $7,000 payout, Recode reported.

“We made a mistake and we are committed to making it right by paying every driver every penny they are owed, plus interest, as quickly as possible,” Uber’s regional manager in the U.S. and Canada, Rachel Holt, said in a statement. “We are working hard to regain driver trust, and that means being transparent, sticking to our word, and making the Uber experience better from end to end.”

Uber has had a rough year with multiple public relations disasters spanning a consumer and driver backlash for the company’s tepid response to the Trump administration’s immigration ban and a sprawling sexual harassment scandal. But the company’s issues with drivers over pay have also persisted.

In January, Uber settled a lawsuit that claimed the company misled drivers regarding earning potential and conditions of the company’s auto financing program. Drivers protested against poor pay throughout 2016, demanding higher pay.

Through it all, Uber has fought drivers on granting employee status and benefits, fair pay, and unionization. But despite the influx of lawsuits, it appears that drivers are going to keep fighting the company on issues.

Following news of Uber’s repayment of New York drivers, the Independent Drivers Guild, which represents more than 50,000 app drivers, called for a widespread investigation into the company’s payment practices.

“Drivers have been complaining about this and other shady accounting tactics to no avail,” said IDG’s executive director Ryan Price in a statement. “Drivers are relieved to be paid the money they are owed plus interest and we hope other companies follow suit.”

“We also call for regulators to launch an immediate investigation into ride hail applications fare and payment practices in our city.”

This article was originally published at ThinkProgress.org on May 24, 2017. Reprinted with permission.

About the Author:  Lauren C. Williams is the tech reporter for ThinkProgress with an affinity for consumer privacy, cybersecurity, tech culture and the intersection of civil liberties and tech policy. Before joining the ThinkProgress team, she wrote about health care policy and regulation for B2B publications, and had a brief stint at The Seattle Times. Lauren is a native Washingtonian and holds a master’s in journalism from the University of Maryland and a bachelor’s of science in dietetics from the University of Delaware.

In Historic Ruling, NLRB Says Tucson Taxi Drivers are Employees

Tuesday, November 3rd, 2015

afl-cio-logo__140430233329[1]In a groundbreaking ruling, the National Labor Relations Board in Tucson, Ariz., has determined that more than 200 taxi drivers employed by AAA Transportation/Yellow Cab are employees and therefore eligible for union representation.

The ruling is the first of its kind for taxi drivers, following a number of cases in which they were found to be independent contractors, and is in line with new analysis used in the FedEx Home Delivery, Inc. decision that found those drivers qualified as employees. The key clarification in that ruling was a consideration of whether the individuals have an “actual entrepreneurial opportunity for loss or gain” when determining whether they are independent contractors. In both the FedEx and Tucson drivers’ cases, it was determined that the opportunities for loss or gain were not “real or feasible,” and therefore, the drivers couldn’t be classified as independent contractors.

In his Oct. 23 decision, NLRB Regional Director Cornele A. Overstreet found that the employer, AAA Transportation/Yellow Cab, exerts significant control over the drivers in a number of ways, particularly by controlling the majority of business through its dispatch system—a system that the employer can modify at will and which directly affects the drivers’ income.

The case began more than two years ago when representatives of the Tucson Hacks Association petitioned the NLRB, challenging drivers’ status as independent contractors. At that time, the NLRB ruled against the THA. After filing a Request for Review, which the NLRB granted, the drivers sought assistance from the Office and Professional Employees International Union, which represents more than 4,000 taxi drivers in Las Vegas and San Diego.

“This group of drivers did as much as they could on their own,” said OPEIU International President Michael Goodwin. “Within three months of turning to OPEIU, we’re pleased to see a favorable decision from the NLRB and are now preparing for an election.”

The regional director has ordered an election, which is expected to take place before the end of the year.

This article was originally printed on AFL-CIO.org on October 30, 2014.  Reprinted with permission.

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