5 ms·
I suggest reading the report by the Minnesota Department of Labor [0]. Some interesting pulls from the summary: > Census data and the driver survey indicate t
by cowboyscott 3y ago
I suggest reading the report by the Minnesota Department of Labor [0].
Some interesting pulls from the summary:
> Census data and the driver survey indicate the majority of Minnesota TNC drivers are male immigrants and predominantly Black or African American non-Hispanic workers with less than a four-year college degree; many live in low-income households (up to 200% of the federal poverty level) and, relative to all Minnesota workers, are disproportionately reliant on public assistance.
> Nearly half (45 percent) of those driving for Uber and Lyft are relatively casual drivers averaging fewer than 10 hours per week and providing only 11 percent of all trips. The focus here is on the committed, non-casual driver since they are more likely to rely on TNC driving as a primary source of income and provide the majority of trips.
> Median earnings for all Twin Cities metro area drivers were $50.04 on a gross passenger time (P3) basis, $29.64 on a gross working hours basis
(P1+P2+P3), and $13.63 on a net, after-expense working hours basis. Twenty-five percent of drivers had net, after-expense hourly earnings of $10.54 or less, and 25 percent of drivers had net after-expense hourly earnings of $17.51 or more.
> The Minnesota per minute rate is designed to compensate drivers at the equivalent of the minimum wage, plus the employer share of federal Social Security and Medicare payroll tax: ($15.57 Minneapolis minimum wage plus $1.28 in payroll tax in the Twin Cities metro area, and $10.85 state minimum wage plus $0.89 in payroll tax for the Greater Minnesota counties). The Minnesota base per mile rate provides for the 63.8 cents per mile cost of acquiring, operating, and maintaining a vehicle based on Minnesota-specific costs from early 2024.
> Applying the 2024 base rate pay standard per minute and per mile rates to the hours worked and miles driven during 2022 indicates that average pay per trip for Twin Cities drivers would rise by about 10 percent under the base pay standard, and by about 17 percent on average for Greater Minnesota drivers.
0: https://dli.mn.gov/sites/default/files/pdf/TNC_driver_earnings_analysis_pay_standard_options_report_030824.pdf https://dli.mn.gov/sites/default/files/pdf/TNC_driver_earnin...
- toss1 3y ago>> are disproportionately reliant on public assistance. Whenever workers for a company are disproportionately reliant on public assistance, it means that the management has figured out a scam to get rest of the taxpayers to subsidize their business. The taxpayers make up the difference between what is paid vs a living wage which would be required for those workers to sustainably work for the corp, and the management/shareholders pocket the difference.
- QuercusMax 3y agoAbsolutely. Companies like Walmart and McDonald's take advantage of this. https://www.worldhunger.org/report-walmart-workers-cost-taxpayers-6-2-billion-public-assistance/ https://www.worldhunger.org/report-walmart-workers-cost-taxp...
- tick_tock_tick 3y agoSo what is your solution? We can clearly see from this whole article companies will just leave the market if you artificially force pay too high. If they don't have that job at Walmart are they suddenly going to get one that means they don't need government assistance?
- QuercusMax 3y agoIf your business can't survive paying employees a living wage, you're closer to slavery than you are to a proper economic model - i.e. your business is unsustainable. If your cost of raw materials is too high, you can't just stiff your suppliers or steal from them. Why should labor be any different?
- tick_tock_tick 3y agoLabor/Employment requires two willing parties don't diminish slavery by claiming paying lower then a living wage is close to it; that's beyond bullshit and you know it. You also avoided answering the question. What happens to these people now? You took away their job and now their quality of life is going to be even lower are you happy?
- toomuchtodo 3y agoIncrease taxes and put in place real social safety nets vs the Rube Goldberg machine of government subsidizing shareholders and businesses through underpaid labor? Perhaps an option some may not be a fan of, but an option as gig work and other industries relying on disadvantaged labor continues to be ground down by regulators.