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Seattle considers mandating hazard pay for gig workers during the pandemic

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The Seattle City Council is considering new emergency legislation that would require companies like Uber and Grubhub to pay drivers $5 for each delivery or ride they provide, on top of their regular rates. The hazard pay is intended to offset costs and risks that drivers are dealing with during the pandemic, like acquiring protective gear and cleaning vehicles between trips.

The hazard pay would apply to gig workers who provide services in Seattle for food delivery, grocery delivery, and ride-sharing companies with more than 250 workers worldwide.

Council members Andrew Lewis and Lisa Herbold introduced the legislation on Friday. If adopted, it would take effect immediately and remain in place until Seattle is no longer in a state of emergency.

“We’re in a crisis,” Lewis said in an interview with GeekWire. “No one projected that COVID was going to come along and nobody could predict the devastating impact that it has had to these app-based drivers who are getting hit when other essential workers are getting certain considerations.”

Uber declined to comment on the legislation but expressed concerns about the impact higher fees will have on customers and drivers.

“The Council’s actions to pass an unprecedented tax increase seriously harms essential workers and low-income community members who can’t afford private vehicles and are being told to avoid public transit during the pandemic,” a Lyft spokesperson said. “For thousands of nurses and healthcare aids, janitors, and food service workers, rideshare has become their only effective alternative for travel, and the Council’s move in the middle of a pandemic to increase fares by 50% in some cases would directly come out of their pockets.”

The ordinance is designed to provide temporary relief for Seattle gig workers but it will be nullified when Seattle Mayor Jenny Durkan’s Fare Share legislation is adopted. Durkan introduced her plan to establish a minimum wage for Uber and Lyft drivers last year and the Seattle City Council unanimously passed it in November. The proposal is currently awaiting the results of a study to determine how to establish a minimum hourly rate for app-based drivers. Those results are expected in July.

“These workers that are facing these struggles cannot wait months to get relief,” Lewis said.

Last month, Seattle capped the fees that services like UberEats charge restaurants at 15% in an effort to mitigate the financial hardship that the food industry is enduring under Washington state’s shutdown order. The fee cap will remain in place until restaurants are allowed to re-open. The emergency order also requires 100% of tips to go to delivery drivers. The new legislation is designed to expand relief for the drivers who provide food delivery and transportation services.

The legislation is a win for Working Washington, a group that advocates on behalf of gig workers.

“We need hazard pay, and we need to know we’re able to go to the doctor, we need to know we have something in the bank,” said James Thomas, a driver for a variety of food delivery services who is connected to Working Washington. “But instead of hazard pay, the companies started lowering the pay by hiring so many people. It just isn’t worth the risk of getting sick for a $2 delivery.”

Gig economy companies and workers have been hit hard by the pandemic. Ride-share drivers, dog walkers, and other on-demand workers saw their incomes dry up overnight. The picture is grim for the companies behind these services too. Uber has laid off more than 6,000 employees in the past few weeks while Lyft reduced its staff by 17%.



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Oxygen chooss CPI for gig economy debit cards

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CPI Card Group Inc. (OTCQX: PMTS, TSX: PMTS) (“CPI” or the “Company”), a payment technology company and leading provider of credit, debit and prepaid solutions, today announced a collaboration with Oxygen, the first digital banking platform tailored to meet the unique needs of the freelance economy.

Oxygen selected CPI to develop its first personal and business debit cards – tapping the Company’s card manufacturing experience and advanced print design services to create a payment product that embodies Oxygen’s unique financial market positioning.

Oxygen provides flexible banking to the millions of U.S. professionals who thrive on multiple income streams, contract work and freelance gigs. The company’s solutions are available through a mobile app that enables a fast, frictionless user experience. Oxygen takes a holistic approach to meeting the financial services needs of independent professionals. In CPI, Oxygen found a card manufacturer that could create a payment solution from end to end. CPI and Oxygen collaborated to develop two packages with clean and crisply-designed vertical cards that arrive nested in interactive packaging. Back-of-card personalization completes the high-end look and feel.

“At Oxygen, we understand that the physical brand experience, – including everything from the card design to the packaging appearance – matters for our creative, tech-savvy clientele. With CPI’s cost-effective scale and design strengths, we were able to deliver a sleek card to customers in a unique, memorable fashion,” said Hussein Ahmed, founder and CEO at Oxygen. “We are pleased to have such a reliable secure card provider and are thrilled to offer customers an eye-catching debit card that echoes their drive, ambition and lifestyle.”

Through CPI’s advanced personalization capabilities and packaging options, financial institutions can develop differentiated card programs that deliver a premium cardholder experience. The Company provides end-to-end support and customizability that allow businesses to create tailored products that bridge the digital and physical worlds for their brands. Additionally, CPI’s innovative manufacturing approach empowers companies to introduce exciting card designs and technology features, which can offer a competitive edge in the pursuit of top-of-wallet status.

“CPI and Oxygen share in being deeply customer-centric in everything we do. We are excited to leverage our manufacturing strengths and high-quality print and design services to achieve debit cards that match the modern, sophisticated aesthetic of Oxygen’s brand and its clients,” said Guy DiMaggio, SVP and General Manager, Secure Card Solutions, CPI Card Group. “We look forward to supporting more fintech innovators and pioneers in creating payment cards that expand the physical aspect of their brands.”  

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How Covid-19 has affected the gig economy in South Africa

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/ MEDIA STATEMENT / This content is not written by Creamer Media, but is a supplied media statement.

A report by The Fairwork Project – a collaboration between various South African and foreign university research units – has found that the non-standard employment status of gig workers during Covid-19 has made them particularly vulnerable during an economic shutdown. However, some gig networking platforms have stepped up to ease the pain.

Fairwork, which draws on the expertise of staff from the universities of Oxford, Cape Town, Western Cape, Manchester, Institute of Information Technology Bangalore in India and the Technical University of Berlin, wrote a report titled Gig Workers, Platforms and Government During Covid-19, which was released in May 2020.

The report looked at gig economy platforms active in South Africa, government responses  regarding informal, freelance or gig economy workers, and actual worker experience surveys. While most platforms regarded workers as independent contracts rather than employees, to their detriment, the report found that gig technology company, M4Jam and SweepSouth actively worked to offset looses of income for contracted giggers.

The report compiled a scorecard which covered principles of fair pay, fair working conditions, fair contracts, fair management and fair representation. The scorecard specifically highlighted pay-related policies, given their importance to gig workers.

The scorecard found that three of the top-ranking platforms – M4Jam, SweepSouth and getTOD – had come up with innovative solutions to the problems their workers faced during Covid-19 and lockdown. M4Jam and SweepSouth were the only platforms to attempt to compensate for gig worker pay loss during lockdown.

“Our survey suggests the majority of gig workers have lost their jobs entirely, while those able to work during lockdown have, on average, lost four-fifths of their income. As a result, many reported that just getting food to eat was their top priority,” the researchers note.

“While [gig economy] platforms have long marketed themselves as facilitators of supplementary income streams, all of this exposes the complete dependency of most workers on their platforms as the basis for their livelihood,” they wrote.

The report stated that gig economy platforms, which operate by connecting jobbers with potential temporary work at corporate entities, should and could do more to help, by such measures as reducing commissions, deferring loans, offering healthcare assistance and sick pay, improving communication and engaging with workers and their representatives more effectively.

Georgie Midgley, CEO of M4Jam, said the report’s finding that inaction on behalf of gig platforms was the norm gave credence to common criticism of the gig economy. “Unfortunately most gig economy platforms live up to negative perceptions about jobber vulnerability. In a country like South Africa where the gig economy can play a vital role in supplementing income and providing much-needed temporary employment, the down side is potential exploitation of workers who do not have the safety net permanent employees have.”

Gig workers have tended to fall between the cracks of government financial relief measures, according to the report, principally because they fall outside the UIF net. “Gig workers have fallen between two stools: able to access neither the [government] support offered to formal employees, nor the support offered to those registered as small businesses. If gig workers are to avoid destitution, government must take further action,” the researchers said.

At the same time, the report said, the value of gig workers to the economy has been underlined by Covid-19 and lockdown. “Delivery services, for example, have been essential to society during lockdown. In the longer term, a legal resolution must be found to rescue gig workers from the employment-status limbo that the pandemic has brought into sharp relief.”

The report found, for example, that both Uber and Bolt ride-hailing services had closed down their local contact centres, “making it harder for drivers to interact with the platforms”. A constant criticism of gig economy platforms is that they simply cannot provide protection of workers’ rights in the same way that the formal economy’s employers do.

With lockdown preventing physical movement of jobbers completing micro-tasks for corporate employers, the report commended M4Jam’s approach of collaborating with one of its clients, Cell C, in rolling out a three-week training initiative that provided payment to workers for completing up to 48 short lessons undertaking via their mobile phones.

This provided further upskilling of contracted jobbers during the down time, and provided an average of R310 per week for those undergoing the training. M4Jam works with corporate clients such as Morecorp, i-People, Twizza, Sereti and more.

The research found that the trends in South Africa broadly reflected gig economy trends around the world, with roughly half of gig workers losing their “jobs” during lockdown. 

“We agree with the report’s findings that if gig economy platforms direct and exercise control over the work given to contracted jobbers, they should go to greater lengths to be responsible for assisting workers in dealing with the effects of Covid-19. This will not only maintain goodwill with contracted workers and ensure livelihoods are not lost – it will also show that the gig economy is a viable long-term alternative for job seekers who cannot get a foothold in the formal economy,” said Midgley.

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Gig economy battle spans unemployment benefits (NYSE:UBER)

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The $2.2T coronavirus relief law enacted in March extended unemployment benefits to previously ineligible groups, like the self-employed and independent contractors.

However, some Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) drivers are nervous about tapping the program out of fear it would certify them as independent contractors, and undermine their fight to be classified as employees.

While some labor attorneys believe their concern is valid, others think the threat is overblown.

California passed a law last year requiring gig companies to treat independent contractors as employees, and other states, like New York, are attempting to follow suit. California’s AB5 law took effect in January, but is being challenged in court.



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