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An OpEd from @dkhos has been making the rounds this week. As someone who& #39;s spent years thinking about portable benefits, I think we need to get a few things straight. https://www.nytimes.com/2020/08/10/opinion/uber-ceo-dara-khosrowshahi-gig-workers-deserve-better.html">https://www.nytimes.com/2020/08/1...
First, some background about portable benefits and the history of why our tax, retirement, and health system are all tied to employers.
I& #39;m not saying they& #39;re *good* reasons, but there are reasons. https://medium.com/trycatch/the-case-for-portable-benefits-and-how-we-get-there-89719d964b01">https://medium.com/trycatch/...
I& #39;m not saying they& #39;re *good* reasons, but there are reasons. https://medium.com/trycatch/the-case-for-portable-benefits-and-how-we-get-there-89719d964b01">https://medium.com/trycatch/...
Now, one of the most interesting things in Dara& #39;s article is that he makes the same mistakes people in power everywhere have made for decades: he implies that his company is the center of the universe for his contractors and their income. They are not.
Particularly for a company trying to prove it& #39;s not an employer, this is a weird move. His primary take is that the benefit of @Uber is about freedom and flexibility (which is a point I very much agree with!).
However... he& #39;s missing the real story here.
However... he& #39;s missing the real story here.
For the majority of Uber drivers, and really, most gig platform workers, the "gig" is a (small) portion of their total employment. @EconomicPolicy has an important piece of research that shows Uber is about 12.5% of a worker& #39;s annual income. That& #39;s 1/8th! https://www.epi.org/publication/uber-and-the-labor-market-uber-drivers-compensation-wages-and-the-scale-of-uber-and-the-gig-economy/">https://www.epi.org/publicati...
The real question is what is the other 87.5%? You know the answer intuitively. It& #39;s other gigs, part time work, hourly jobs, and for a small but growing subset: their own businesses. We see users all the time join us who tell us they& #39;re writers, coaches, etc. earning Uber income.
So when it comes to the "debate" about Uber providing benefits, do most people (including Dara) realize that we& #39;re debating about benefits on a SMALL PORTION OF TOTAL INCOME? Seems like no.
The bigger issue is the safety net as a whole, outside of any given income stream.
The bigger issue is the safety net as a whole, outside of any given income stream.
The solution can& #39;t come from Uber. I know AB-5 backers think it all will change if we reclassify contractors, but I totally agree with Dara: that is simply not the solution to getting real benefits into the hands of gig workers.
See: financial stability of low income W2s.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👎" title="Thumbs down" aria-label="Emoji: Thumbs down">
See: financial stability of low income W2s.
What we need instead is a system that exists outside of any given income source. Something that is inherently not tied to hours worked or an employer. Portable benefits must be portable. And they must be private sector. This is my hill: I will die upon it.
Uber& #39;s commitment to providing additional investment into a fund that can be used towards benefits is great (really!). But it can& #39;t live at Uber. It has to be accessible by variable income sources that make up the other 87.5% of income for any given Driver, too.
What should Uber and others focus on, then? Higher pay. More money. Additional incentives. Cash. Dinero.
Again, not just at Uber, all labor-intensive work is poorly compensated in our version of capitalism where capital is viewed as the hero and labor as the burden.
Again, not just at Uber, all labor-intensive work is poorly compensated in our version of capitalism where capital is viewed as the hero and labor as the burden.
Just like with philanthropic work, too many people think the problem will be solved by "smart, altruistic people doing stuff" when the problem is really about cash money in people& #39;s hands.
That& #39;s not to say there isn& #39;t work to be done on benefits for independents. There is.
That& #39;s not to say there isn& #39;t work to be done on benefits for independents. There is.
In summary: I think AB-5 is silly. I think the platforms don& #39;t pay well enough. I think non-profits are creating inefficiencies. I think the government is not aligning incentives. I think we are moving too slowly.
We need massive change. This pandemic is our chance.
We need massive change. This pandemic is our chance.
Dara made some good points. But at the end of the day, Uber& #39;s decisions won& #39;t save or destroy our economy. He doesn& #39;t have that power. This is a job all of us need to take on.
- Higher minimum (and mandated gig) wages
- Tax incentives for independent workers
- Healthcare reform
- Higher minimum (and mandated gig) wages
- Tax incentives for independent workers
- Healthcare reform
And: really good for-profit portable benefits platforms that can provide financial products that allow us to stabilize the on-demand workforce with protection against emergencies and confidence in growing wealth.
We& #39;re working on it. http://catch.co"> http://catch.co
We& #39;re working on it. http://catch.co"> http://catch.co
