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California Gig Decree: Uber Halts Upfront Pricing

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Uber is dropping upfront pricing in favor of estimates in response to the California gig economy law that took effect Jan 1.

Reuters saw an email to riders and drivers on Wednesday (Jan. 8) advising them that the final price of a trip would be calculated at drop-off “based on the actual time and distance traveled.”

“Due to a new state law, we are making some changes to help ensure that Uber remains a dependable source of flexible work for California drivers,” the company said in the email.

“These changes may take some getting used to, but our goal is to keep Uber available to as many qualified drivers as possible, without restricting the number of drivers who can work at a given time,” continued the email. “We want your Uber experience to be excellent, and fewer drivers on the road would mean a more expensive and less reliable service for you.”

The new law prompted Uber to revise its app, giving California rideshare drivers detailed information about a trip — fare, length, destination — before they accept it. Riders will be able to schedule rides with favorite drivers.

An Uber blog post said the changes were in response to California’s AB5 law. Other revisions include Uber’s cut of the fares, which will now be a maximum fixed rate of 25 percent instead of fluctuating fees. A 28 percent remains in effect for all UberXL, Comfort, SUV and Lux trips. 

The changes are intended to convince California lawmakers that as independent contractors, Uber drivers have control over when, where and how they work. The rideshare giant maintains that it is a technology platform that links riders with drivers, not a transportation company.

The law classifies gig workers as employees, which requires higher pay, medical insurance and other benefits.  

Uber and the delivery app Postmates have filed a lawsuit against the state of California. Two organizations representing freelance journalists also filed a lawsuit, saying AB 5 restricts free speech by effectively limiting the number of articles a contract journalist can write for the same publication. The trucking industry also said that the law would make it impractical, if not impossible, to use contractors across state lines.

 

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Gig economy saves Australia’s jobs market, but at what cost?

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Don’t be surprised if employers use the recession to employ more casuals and outsource more work.

(Image: Adobe)

There were three messages in the confusing jobs data for August that emerged yesterday from the Australian Bureau of Statistics. The headline number was dramatically better than any economist, or even the Reserve Bank or Treasury, had predicted.

The first is, despite the claims from the media and the Morrison government that the Andrews government’s lockdown was some profound act of economic vandalism, Victoria’s jobless rate only moved up to 7.1% from 6.8%, with 42,000 jobs lost in that state last month. Hours fell by 4.8% in Victoria, compared with a 1.8% rise across the rest of Australia.

Now there may well be another big fall in Victoria in the September data as the numbers catch up. There will be a clue in the ABS’s next payroll jobs and wages data next week.



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Collaboration in the Gig Economy keynote

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September 17, 2020

Engagement managers already have a much more complex choice than in the past. It’s not just whether to hire a traditional employee to get a job done — the procurement supply chain is much larger. Today’s choices include using a staffing agency temp, engaging an independent contractor, calling in an SOW consultant or turning to an online work platform. And technology continues to bring changes — with Covid-19 speeding up the evolution.

“I would argue that times of crisis and times of change, like we are in today, will help propel the next stage of digital transformation,” SIA President Barry Asin said in a keynote address today kicking off the Collaboration in the Gig Economy virtual conference.

Asin cited technological change wrought by the last recession: In 2007, only 24% of large companies had a VMS in place; by 2010, the percentage had grown to 64%.

Fast forward to today, there was $1 billion in venture capital funding focused on the HR tech space in the second quarter alone.

Large companies that use staffing are turning to tech more and more. SIA data found 43% of large staffing buyers foresee an increase in usage of online staffing/talent pool in the next 10 years. Evolving concepts such as direct sourcing are already used by 30% of buyers, and 49% plan to put a direct-sourcing program in place within the next two years; much of it fueled by new tech offerings.

“I think that what we’re seeing — particularly for the traditional service providers in the talent supply chain — is a real digital transformation, and the current crisis is accelerating that digital transformation,” Asin said. “And it’s accelerating it for all the players involved at the different points of that supply chain.”

Already, 54 million Americans did gig work in 2019, approximately 34% of the workforce, according to SIA data. That amounts to $1.3 trillion in spend with the largest share going to independent contractors. SIA defines the gig economy as including all types of contingent work, encompassing

  • staffing agency temporary workers
  • SOW consultants
  • directly hired temporaries
  • online platform workers
  • independent contractors

The Collaboration in the Gig Economy Conference brings together all parts of the ecosystem to talk the latest trends and advances. Attendees include enterprise buyers, staffing suppliers, VMS/MSP companies, human cloud/on demand platforms and technology solutions providers.

“There is a wave and a transformational change that we are seeing in society,” Asin said. “Many of you are on the leading edge of that change.”

The virtual event continues through tomorrow.

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Australia – Victorian government launches consultation for feedback on its gig economy report

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17 September 2020

The Victorian government inviting Victorians to make submissions about all or some of the recommendations into its report on the gig economy.

The Victorian Government first commissioned its ‘Inquiry into the Victorian On-Demand Workforce’ in September 2018 in response to concerns about the wages and conditions of workers in the on-demand or ‘gig economy’.

The Inquiry, which was chaired by former Fair Work Ombudsman Natalie James, completed its investigations and submitted a report to Government. The report was published in July 2020.

The two-year investigation found that online platforms such as Uber and Deliveroo in Victoria have deliberately framed their arrangements with workers to avoid regulation while other businesses carry the cost of complying with workplace laws.

While some appreciated the flexibility on-demand work provides, James found the uncertain status of workers, who are not classified as employees and therefore do not qualify for workplace entitlements, protections and obligations, was at the heart of the system’s failures of workers.

The report made 20 recommendations for both the federal and state governments aimed at improving protections for on-demand workers.

The Victorian government stated on its site that all submissions will be treated in confidence to allow people to ‘frankly share their views’. The Victorian Government added that it will consider all feedback received before responding to the Inquiry’s Report.

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