Uber Bullies Minnesota Governor Into Vetoing Driver Minimum Pay Law

Minnesota Governor Tim Walz has vetoed a bill that would’ve acceptable a minimum wage for rideshare drivers successful the state. His decision—the archetypal veto of his gubernatorial tenure—came aft Uber threatened to cease operations crossed astir of Minnesota, if the authorities became law.

“Rideshare drivers merit harmless moving conditions and just wages,” Walz wrote successful a letter announcing the veto connected Thursday. “However, House File 2369 is not the close measure to execute these goals and is simply not acceptable to beryllium codified successful Minnesota Law.” He further claimed that the measurement “could marque Minnesota 1 of the astir costly states successful the state for rideshare” connected par with cities similar New York and Seattle—both places that person already enacted pay floors for rideshare drivers.

Minnesota’s measure would’ve guaranteed drivers successful the Minneapolis-St. Paul metro country a basal wage of $1.45 per mile and $0.34 per minute, positive yearly accommodation increases based connected the Consumer Price Index. Elsewhere successful the state, those minimums would person been $0.20 lower. It besides would’ve introduced different protections, similar forcing rideshare companies to supply much transparency surrounding operator deactivations, and granting drivers the close to entreaty specified decisions.

The would-be instrumentality narrowly passed some Minnesota’s House of Reps and State Senate, contempt important absorption from rideshare companies. But connected Thursday, arsenic the measure landed connected Walz’s desk, Uber upped the pressure, claiming that the authorities would “make it intolerable to proceed serving astir areas of the state,” successful a statement to multiple news outlets. “If the measure is signed into law, opening August 1, Uber volition halt operating our thrust work extracurricular of Minneapolis-St. Paul metro area. In the metro area, we volition lone connection premium products to lucifer the premium prices required by the bill.”

Uber’s outright menace was a origin successful Walz’s decision, but not the lone one, the politician claimed to section outlet WCCO News. He said that the measurement had prompted interest from the disablement assemblage and others who mightiness trust connected rideshare. In summation to the veto, Walz besides issued an enforcement bid creating a committee to survey rideshare concern successful the authorities and make aboriginal argumentation recommendations.

Rideshare companies celebrated the move. Uber claimed it would enactment a antithetic measure that acceptable little wage minimums and ensured drivers were classified arsenic autarkic contracts, not employees—a captious designation combat playing retired successful aggregate different states. A Lyft spokesperson told WCCO “Lawmakers should walk just wage and different protections, but it indispensable beryllium done successful a mode that doesn’t jeopardize the affordability and information of those who trust connected the service...We look guardant to continuing our engagement.” 

In contrast, proponents of the measure were disappointed with the politician and dissatisfied with his promises of a moving radical and aboriginal legislative efforts. “It is astonishing that @GovTimWalz sides with corporates implicit mediocre drivers who campaigned and voted for him similar helium would beryllium their savior,” the Minnesota Uber/Lyft Drivers Association wrote connected Twitter.

“Today, we saw the powerfulness corporations clasp connected our government,” tweeted State Senator Omar Fateh who co-authored the legislature mentation of the vetoed legislation. “The combat is not over, and I committedness you I wont backmost down.”

The Minnesota House and Senate People of Color and Indigenous Caucus besides issued a statement. “We are disappointed successful Governor Walz for vetoing the rideshare legislation. Moreover, it is disheartening that the archetypal veto of his word would beryllium against idiosyncratic protections for BIPOC and migrant drivers,” the Caucus wrote. “By vetoing the bill, Governor Walz discredited the magnitude of enactment legislators, assemblage leaders, and advocates enactment successful to guarantee the measure was reflective of idiosyncratic needs and stakeholders’ concerns.”

In contrast, California courts have upheld a ballot measurement that specifically designates rideshare workers arsenic autarkic contractors, and exempts them from worker rights and protections. The workers’ radical that sued implicit the measurement is apt to appeal.