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Gig workers face shifting roles, competition in pandemic – The Denver Post

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NEW YORK — There were the two-hour, unpaid waits outside supermarkets when San Francisco first started to lock down, on top of the heavy shopping bags that had to be lugged up countless flights of stairs.

And yet even after signing up for several apps, 39-year-old Saori Okawa still wasn’t making as much money delivering meals and groceries as she did driving for ride-hailing giant Uber before the pandemic struck.

“I started to juggle three apps to make ends meet,” said Okawa, who recently reduced her work hours after receiving unemployment benefits. “It was really hard, because at that time, I could not afford to stay home because I had to pay rent.”

Okawa is one of an estimated 1.5 million so-called gig workers who make a living driving people to airports, picking out produce at grocery stores or providing childcare for working parents. Theirs had already been a precarious situation, largely without safeguards such as minimum wage, unemployment insurance, workers compensation and health and safety protections.

But with the pandemic pummeling the global economy and U.S. unemployment reaching heights not seen since the Great Depression, gig workers are clamoring for jobs that often pay less while facing stiff competition from a crush of newly unemployed workers also attempting to patch together a livelihood – all while trying to avoid contracting the coronavirus themselves.

U.S. unemployment fell to 11.1% in June, a Depression-era level that, while lower than last month, could worsen after a surge in coronavirus cases has led states to close restaurants and bars.

Marisa Martin, a law school student in California, turned to Instacart when a state government summer job as paralegal fell through after a hiring freeze. She said she enjoys the flexibility of choosing her own hours but hopes not to have to turn to gig work in the future. The pay is too volatile — with tips varying wildly and work sometimes slow — to be worth the risk of exposure to the virus.

“We are not getting paid nearly enough when we’re on the front lines interacting with multiple people daily,” said Martin, 24, who moved in with her parents temporarily to save money.

Alexandra Lopez-Djurovic, 26, was a full-time nanny in a New York City suburb when one of the parents she works for lost her job while the other saw his hours cut.

“All of a sudden, as much as they want me to stay, they can’t afford to pay me,” she said. Her own hours were reduced to about eight per week.

To make up lost wages, Lopez-Djurovic placed an ad offering grocery delivery on a local Facebook group. Overnight, she got 50 responses.

Lopez-Djurovic charges $30 an hour and coordinates shopping lists over email, offering perks the app companies don’t such as checking the milk’s expiration date before choosing which size to buy. Still, it doesn’t replace the salary she lost.

“One week I might have seven, eight, 10 families I was shopping for,” Lopez-Djurovic said. “I had a week when I had no money. That’s definitely a challenge.”

Upwork, a website that connects skilled freelance workers with jobs, has seen a 50% increase in signups by both workers and employers since the pandemic began, including spikes in jobs related to ecommerce and customer service, said Adam Ozimek, chief economist at Upwork.

“When you need to make big changes fast, a flexible workforce helps you,” he said.

Maya Pinto, a researcher at the National Employment Law Project, said temporary and contract work grew during Great Recession and she expects that many workers will seek such jobs again amid the current crisis.

But increased reliance on temporary and contract work will have negative implications on job quality and security because it “is a way of saving costs and shifting risk onto the worker,” Pinto said.

It’s difficult to assess the overall picture of the gig economy during the pandemic since some parts are expanding while others are contracting. Grocery delivery giant Instacart, for instance, has brought on 300,000 new contracted shoppers since March, more than doubling its workforce to 500,000. Meanwhile, Uber’s business fell 80% in April compared with last year while Lyft’s tumbled 75% in the same period.

For food delivery apps, it’s been a mixed bag. Although they are getting a bump from restaurants offering more takeout options, those gains are being offset by the restaurant industry’s overall decline during the pandemic.

Gig workers are also jockeying for those jobs from all fronts. DoorDash launched an initiative to help out-of-work restaurant workers sign up for delivery work. Uber’s food delivery service, Uber Eats, grew 53% in the first quarter and around 200,000 people have signed up for the app per month since March — about 50% more than usual.

“Drivers are definitely exploring other options, but the issue is that there’s 20 or 30 million people looking for work right now,” said Harry Campbell, founder of The Rideshare Guy. “Sometimes I joke all you need is a pulse and a car to get approved. But what that means is it’s easy for other people to get approved too, so you have to compete for shifts.”

Delivery jobs typically pay less than ride-hailing jobs. Single mom Luz Laguna used to earn about $25 in a half-hour driving passengers to Los Angeles International Airport. When those trips evaporated, Laguna began delivering meals through Uber Eats, working longer hours but making less cash. The base pay is around $6 per delivery, and most people tip around $2, she said. To avoid shelling out more for childcare, she sometimes brings her 3-year-old son along on deliveries.

“This is our only way out right now,” Laguna said. “It’s hard managing, but that’s the only job that I can be able to perform as a single mother.”

Other drivers find it makes more sense to stay home and collect unemployment — a benefit they and other gig workers hadn’t qualified for before the pandemic. They are also eligible to receive an additional $600 weekly check from the federal government, a benefit that became available to workers who lost their jobs during the pandemic. Taken together, that’s more than what many ride-hailing drivers were making before the pandemic, Campbell said.

But that $600 benefit will expire at the end of July, and the $2 trillion government relief package that extended unemployment benefits to gig workers expires at the end of the year.

“So many drivers are going to have to sit down and decide, do I want to put myself at risk and my family at risk once I’m not getting the government assistance?” Campbell said.

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Workers

Buckle Reinvents Insurance Model for Gig Economy with $31 Million Series A Funding

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JERSEY CITY, N.J.–()–Buckle, a tech-enabled financial services company, has filed its Regulation D and disclosed it raised $31 million through its Series A funding round co-led by HSCM Bermuda and Eos Venture Partners. Addressing gaps in conventional insurance policies that leave gig workers underinsured, Buckle is using the funding to reinvent the insurance model with new sources of data to underwrite risk, making insurance comprehensive, affordable, and easy to obtain for rideshare drivers.

“Whether rideshare drivers are on duty or driving their family around on personal time, Buckle will have them covered,” said Dustin Walsey, co-founder of Buckle. “We are excited to offer comprehensive, easy-to-understand insurance to active rideshare drivers for overall better personal protection.”

In 2019, Buckle launched its core rideshare insurance policy that combines personal and commercial coverages, in collaboration with Munich Re’s Digital Partners. Earlier this year, it expanded the program through a partnership with Lyft.

In June, Buckle announced the acquisition and recapitalization of Gateway Insurance Company (Gateway), including its 47 state insurance licenses. Now, through Gateway, Buckle is expanding insurance coverage to include transportation network companies (TNCs), traditional taxi, limo, and livery businesses using the Curb app.

“The ride-hailing market is expected to grow globally to approximately $260 billion by 2024,” said Vikas Singhal, Partner and CIO of Insurtech at HSCM Bermuda. “As the market grows, demand for straight-forward and affordable insurance coverage for both providers and TNCs will grow with it. We’re excited to help the Buckle team take the company to the next level.”

“The rideshare and dispatched delivery markets need specialized insurance expertise,” said Jonathan Kalman, Founding General Partner at Eos Venture Partners. “Buckle has built a comprehensive insurance solution to this growing market.”

Buckle plans to launch other products and partnerships as it expands nationwide.

About HSCM Bermuda

HSCM Bermuda is an asset manager focused on investments in the Re/Insurance and Transportation sectors. HSCM was launched in 2016 and focuses on core economic sectors that are likely to outgrow global GDP, offer low correlations with broader markets, and are experiencing a shift from balance sheet and to market financing. For more information about HSCM Bermuda, please visit www.hscm.com.

About Eos Venture Partners

Eos Venture Partners is a global independent Strategic Venture Capital Fund focused exclusively on InsurTech, investing in early and growth stage technology businesses that accelerate innovation and transformation across the insurance industry and value chain. Eos was founded in 2016 to bridge the “digital chasm” between InsurTech start-ups and traditional (re)insurance companies. Investors in the Eos fund, EVP I, are from the insurance sector, forming a close strategic relationship with the Eos team to capture both strategic and financial value from the innovation and technology change in the insurance industry. See more at: www.eosventurepartners.com.

About Buckle

Buckle offers total insurance coverage specifically for rideshare and other gig economy providers and TNCs, looking to get coverage that’s fair and simple. Buckle Rideshare Insurance isn’t a gap product that supplements an existing policy, but replaces a driver’s current auto insurance, providing continuous 24×7 coverage on-and-off the clock with one low rate. Connect with Buckle on Facebook and LinkedIn and visit www.buckleup.com.

All trademarks recognized.

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CERB 2.0? Trudeau Hints at New Benefit for Gig Workers

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The CERB may be winding down, but that doesn’t mean out-of-work Canadians can’t still get benefits.

That’s the takeaway from a recent statement by PM Justin Trudeau, who announced that his government had been working on a “21st century EI system.” In covering Trudeau’s statement, the Canadian Press reported that the revamped EI system would replace the CERB, bringing more Canadians under coverage — including one group of Canadians who had been sorely neglected until the CERB came into effect.

An “EI-like benefit” for gig workers

One of the main beneficiaries of Trudeau’s “transitional EI-like benefit” would be gig workers. Under current rules, gig workers are considered self-employed. That means that they’re opted out of EI by default. Gig workers can indicate that they want to pay in to EI, but usually don’t. The self-employed pay twice the usual rate on CPP; passing on EI premiums is a way to partially offset that extra tax. As a result, many self-employed Canadians aren’t covered by EI.

Trudeau’s new EI benefit could remedy that. While details on the plan are scarce so far, it appears that there will be an interim benefit to cover non-EI eligible Canadians, followed by a totally revamped EI system. It’s hard to predict exactly what the latter will consist of, but the former will probably be regular EI with looser eligibility requirements.

Why this is good news

While many out-of-work Canadians may bemoan the loss of the $2,000 a month benefit, it may ultimately be a good thing. The CERB has always been beset by concerns about eligibility and fraud. Many Canadians have reported being “scared” to spend their CERB money, and ominous CRA statements probably haven’t helped with that.

Getting back to EI could therefore be a welcome development. While the average monthly amount isn’t as high as the CERB, EI has fewer eligibility questions hanging over it. As a result, individuals receiving EI may feel more free to spend it.

For example, if you received $1,000 a month in EI, you could spend that money on investments. If you took $1,000 worth of EI and spent it on shares in Fortis, you’d be within your rights to do so. After all, it’s a program you paid in to, and if you’ve been laid off, you’re eligible to benefit from it. It doesn’t matter how you spend the money.

With the CERB, it’s not quite so simple. There’s been a big question mark about eligibility ever since the program began, and spending CERB money on non-essential items has been frowned upon. If you took $1,000 worth of CERB money and bought FTS shares with it, that wouldn’t make you ineligible. However, it could be inconvenient if the shares declined in value, and you were later forced to repay the CERB. With EI, you always know that you’re entitled to the money you’re getting, as applications are pre-screened for eligibility. As a result, you can sleep soundly no matter how you spend the money — be it on groceries, Fortis shares, or anything in between.

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Observers call on National Wages Council for more aggressive wage support, office to look after gig workers, Manpower News & Top Stories

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In September and October 1998, as the full impact of the Asian financial crisis on Singapore’s economy became more apparent, the National Wages Council (NWC) was convened a second time that year to revise its annual wage guidelines.

Its original guidelines, issued in May, had called for wage restraint and non-wage cost-cutting measures, as the Trade and Industry Ministry forecast economic growth for the year of between 2.5 per cent and 4.5 per cent.

But as the crisis deteriorated, the growth forecast for the year was revised downwards in June to between 0.5 per cent and 1.5 per cent.

The NWC in November proposed that in addition to a 10 percentage point cut to employers’ Central Provident Fund (CPF) contributions recommended by the Committee on Singapore’s Competitiveness, total wages for 1998 be cut by 5 per cent to 8 per cent, as compared with 1997.

This year, with Singapore headed for its worst recession since independence due to the Covid-19 pandemic, observers suggested that the council consider calling for more aggressive wage support, an office to look after gig workers and pay hikes for low-wage staff.

Manpower Minister Josephine Teo said in a Facebook post yesterday that the NWC will reconvene this year. The council made its annual wage guidelines in March this year.

Institute for Human Resource Professionals (IHRP) chief executive Mayank Parekh said that without the prospect of a near-term recovery of demand, there could be more job losses and wage cuts on the horizon.

“It is timely for the NWC to review its earlier recommendations and seek support for additional measures to safeguard jobs and enhance employability,” he said.

“More aggressive wage measures, higher support for job redesign and re-training and additional guidelines on retrenchment payments could be considered.”

Singapore Human Resources Institute president Low Peck Kem suggested the council look at whether the Jobs Support Scheme of wage subsidies can be extended, as well as the need for funding to facilitate job redesign for future-ready jobs.

It could also propose the setting up of a tripartite office to help and protect gig workers, who tend to fall under the radar because they do not have employers, she said.

National Trades Union Congress (NTUC) assistant secretary-general Zainal Sapari said the NWC should continue to push for wage increases for low-wage workers, even amid the pandemic.

“Instead of recommending a quantum wage increase, I would like NWC to set a long-term target of where wages of these vulnerable low-wage workers who are performing essential services should be at. This could then act as a guideline for the wage increases and the necessary productivity initiatives that must be embarked upon to make it sustainable,” he added.

This is only the fourth time since being set up in 1972 that the council has been convened twice in the same year.

Aside from 1998, it also released revised recommendations in 2001, after the Sept 11 attacks on the United States, and in 2009 amid the global financial crisis.

In January 2009, the council updated its guidelines to recommend – among other things – that companies work with unions and workers to manage costs, such as through wage freezes or wage cuts, to save jobs.

The NWC had in March this year considered whether to recommend reducing CPF contribution rates to cut wage costs.

But Permanent Secretary for Manpower Aubeck Kam had said then that as the Jobs Support Scheme wage subsidy far exceeds the employer CPF contribution rates of up to 17 per cent, the Government did not feel that a cut to the rate was warranted.

DBS Bank senior economist Irvin Seah said that short of extending the JSS payouts for worst-hit industries, a temporary cut in employer CPF contribution rates could be an option the NWC considers.

But he cautioned that such a move would need to be weighed very carefully. “It would be a reduction in workers’ savings, on top of already widespread wage cuts.”

Amid reports of major retrenchment exercises in recent weeks, Mrs Teo also commented yesterday on the Fair Retrenchment Framework proposed by the NTUC last month. It includes protecting the Singaporean core of the workforce, while foreigners with special or critical skills could be retained as well.

She said in her Facebook post that the Singapore National Employers Federation will consider the framework and discuss a mutually acceptable way forward with NTUC.

In the meantime, the Manpower Ministry will continue its work on the Fair Consideration Framework, she said, adding that there would be updates soon.

“Tripartite partners are aligned on one thing – the need to support our workers and businesses through the storm brought about by Covid-19. Much work ahead,” she said.



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