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California’s Prop. 22 could affect the gig economy nationwide

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California’s Proposition 22 is an initiative sponsored by Uber, Lyft, DoorDash and other gig work platforms. It would exempt app-based ride-hailing companies and food delivery companies from a new state law that requires them to classify drivers as employees instead of independent contractors.

Gig companies have poured nearly $200 million into the Yes on Proposition 22 campaign, making it the most expensive ballot initiative in state history. They’ve threatened to leave California or dramatically raise prices if it doesn’t pass, and a loss could embolden other states to insist that app companies hire their drivers.

I spoke with Sam Harnett, a reporter for KQED in San Francisco. The following is an edited transcript of our conversation.

A headshot of Sam Harnett, a reporter for KQED in San Francisco.
Sam Harnett (Photo courtesy of Gundi Vigfusson)

Sam Harnett: Gig companies are saying, “If this doesn’t pass, we’re going to have to potentially suspend service in California.” And if it passes, Uber, Lyft and the rest of the gig companies will be able to continue operating the way that they were operating before. Their workers would be contractors, [which] means they wouldn’t have basic employee protections like unemployment insurance, workers’ compensation. And the way this proposition is written, that will be pretty much locked in. There’s this seven-eighths provision, which means it would take seven-eighths of the Senate and Assembly in California to make any changes to this proposition. And local jurisdictions, cities and counties couldn’t make any changes to give gig workers more benefits.

Molly Wood: Do these same restrictions, this un-overturnability, does that apply even if the companies are forced to classify their workers as employees?

Harnett: Well, if Proposition 22 doesn’t pass, workers will become employees, but these gig companies still have billions of dollars, and they’re going to keep fighting this tooth and claw. I mean, they see this as an existential threat to their business model. So on the one side, if Prop 22 passes, the gig model looks pretty solid. I mean, maybe something federally could lead to a change. Maybe there could be a lawsuit over something procedurally in the proposition, like maybe that seven-eighths provision I mentioned. But it’s going to be there. On the flip side, if Proposition 22 doesn’t pass, you can expect another salvo from the gig companies pretty quickly.

Wood: This is a California ballot proposition, but I wonder what implications could it have if it doesn’t pass for the gig economy nationally?

Harnett: Oh, huge. I think everybody, nationally and internationally, is looking at this case. Over the last couple years, you’ve seen the California Supreme Court, the California legislature and now the attorney general go after these companies and tell them, “Your workers are actually employees, and they need basic protections.” And if the gig companies are successful in using the ballot box to defy the three branches of government and maintain their business model, I think a lot of other states, and a lot of other countries, are going to see that as, “Well, the gig companies, they won.”

Wood: And if they don’t win, would that embolden maybe states and localities who have wanted to do something about this model to pass their own laws?

Harnett: Absolutely. In Massachusetts, they’re moving, pushing back on gig companies in a similar way. And in other states, they’re now trying to follow California’s path. And I think a victory for labor if Prop. 22 doesn’t pass, I think will ripple. And again, the companies would have to then classify workers as employees, and the rubber is going to hit the road, and we’re going to see how that all plays out.

Wood: These companies, of course, have poured a ton of money into this campaign, and they’re using their platform for that campaigning. Can you talk about some of the tactics that they’re using when you’re actually using apps like Postmates and Uber and Lyft these days?

Harnett: They got $185 million behind this, but they also have apps in hundreds of thousands or millions of voters’ pockets. So if you’ve taken Uber or Lyft, you’ve probably gotten a pop-up that has had messaging about Proposition 22. And if you work for these apps, you’re also getting pop-ups and material inside the apps urging you to vote yes on Prop 22. DoorDash has sent several million pro-Prop. 22 delivery bags for restaurants, which then the DoorDash workers have to carry the food to customers in those bags. And then Uber has a pop-up for riders that tells riders that their drivers support Prop. 22 and to talk to drivers about it. So these companies are leveraging their apps and they’re leveraging their workers in a way that has never been seen before in an election fight.

Wood: In your reporting, what are you hearing from drivers? Do you have a sense of how they’re feeling about all this?

Harnett: I’ve been covering this for five or six years, and drivers actually have always told me pretty much the same thing, which is they want to be their own boss, they want to be independent, they want to be flexible, but they also want basic protections, or at least enough money to get those basic protections. So a lot of drivers, they get these surveys that ask them if they want to be contractors, and it’s kind of confusing, because they do want to be contractors, but it’s kind of an aspirational desire to be contractors. They want to be contractors who actually make enough money to pay for health insurance, who actually make enough money to work when they want to work. And right now, what drivers are saying is that the rates haven’t been good in years, but they’ve been declining since the beginning. They’re frustrated. So I’d say workers want autonomy, independence and flexibility, but they want some basic protections.

Rideshare drivers demonstrate against rideshare companies Uber and Lyft during a car caravan protest on August 6, 2020 in Los Angeles.
Rideshare drivers demonstrate against rideshare companies Uber and Lyft during a car caravan protest on Aug. 6 in Los Angeles. (Robyn Beck/AFP via Getty Images)

Related links: More insight from Molly Wood

The Guardian calls Proposition 22 an initiative with “the fate of an industry” riding on it. Even more than that, it’s an attempt to figure out a new framework for labor and hiring in an economy where apps like this do employ so many workers. And in some ways, like Sam Harnett said, a lot of drivers, analysts and labor experts think there should be a third way, something in between very regimented 8 a.m. to 5 p.m. employment that at least comes with benefits, and total freedom and flexibility — to die with no health insurance or miss rent if you get sick.

The delivery and ride-hail companies are positioning Proposition 22 as sort of a third way since the drivers would stay independent contractors but get some small benefits, like accident insurance and stipends to use for health insurance that go up the more hours someone drives. And, of course, it’s hard to forget that this proposition is a total end-run around a state law that the companies in question just decided to ignore. Nevertheless, opinions on Proposition 22 are fairly evenly split, even though many Californians are already voting.

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Gig Economy Market 2021 | Covid19 Impact Analysis | Business Outlook, Growth, Revenue, Trends and Forecasts 2026

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Gig Economy Market
A new business intelligence report released by Qurate Research with the title “Global Gig Economy Market Research Report 2021” that targets and provides COVID-19 Outbreak comprehensive market analysis with prospects to 2026. The analysts of the study have acquired, extensive research methodologies and data sources (i.e. Secondary & Primary Sources) to generate collective and useful information that delivers the latest market undercurrents and industry trends. The report provides a comprehensive overview including Definitions, Scope, Application, Production and CAGR (%) Comparison, Segmentation by Type, Share, Revenue Status and Outlook, Capacity, Consumption, Market Drivers, Production Status and Outlook and Opportunities, Export, Import, Emerging Markets/Countries Growth Rate. The report presents a 360-degree overview of the competitive landscape of the industries.

The report evaluates the global Gig Economy market size, share, and growth rate and provides an accurate projection for similar facets by thoroughly studying historic as well as the current status of the market. The report presents a market analysis based on revenue and sales volume. It also allows for gaining comprehensive acumen in upcoming business opportunities, obstacles, threats, and hindering factors in the market.

Besides, the report sheds light on the significant evaluation of leading contenders who have been performing in the market to satisfy the desired needs and anticipations of end-users. The report offers in-depth insights into leading market players, alongside their corporate and organizational profiles, financial details, manufacturing methodologies, and so forth. Statistical details in terms of revenue, sales volume, profit margin, and CAGR have been included in the report. Additionally, the report comprises recent strategic and tactical moves that help to form their own lucrative business stratagem and make profound business decisions.

This report categorizes the market based on manufacturers, regions, types and applications.

A thorough assessment of leading manufacturers including their profiles, pricing structure, and product specifications of Gig Economy Market:


TaskRabbit
BellHops
Guru.com
HopSkipDrive
Freelancer
Rover
Upwork
Fiverr
DoorDash
Favor Delivery
Turo
Twago Enterprise
Handy

Key Market Segmentation as follows –

Type Segmentation

(APP-based, Website-based)

Industry Segmentation

(Freelancer, Independent Contractor, Project Worker, Part-Time)

Buy Latest Copy of Report! @ https://www.qurateresearch.com/report/buy/MnE/global-gig-economy-market/QBI-BIS-MnE-939056/

Market Segment by RegionsNorth America (United States, Canada and Mexico), Europe (Germany, France, UK, Russia and Italy), Asia-Pacific (China, Japan, Korea, India and Southeast Asia), South America (Brazil, Argentina, Colombia etc.), Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)

Additionally, the report discusses provincial trade frameworks, entry barriers, and varying economic structures.

Moreover, the report presents industry overview in a portrayed view to offer a wide acuity of the global Gig Economy market. It also provides a detailed analysis based on a competitive landscape that aids a reader to obtain a thorough perception of competitive advantages, contender’s missions, core values, and niche markets. It also highlights how the Gig Economy market is associated with its peer and parent market. Further, the report illuminates its impacts on the international economy throughout the period between 2021 and 2026.

If you are involved in the Global Gig Economy industry or intend to be, then this study will provide you a comprehensive outlook. It is vital you keep your market knowledge up to date segmented by major players. If you have a different set of players/manufacturers according to geography or needs regional or country segmented reports, we can provide customization according to your requirement.

The Global Gig Economy Market Report Enfolds:

• Extensive delineation of Gig Economy industry overview.
• Cardinal synopsis of every leading contender performing in the global Gig Economy market.
• Statistical assessment of Gig Economy market size, share, revenue, growth rate, and sales volume.
• Precise details based on Gig Economy market segmentation.
• Valuable information on the changing-pricing structure.

Major Points Covered in TOC:

Gig Economy Market Overview
Gig Economy Market Segment by Type
Gig Economy Market Analysis by Applications
Gig Economy Market Analysis by Regions
Gig Economy Market Dynamics
Gig Economy Manufacturers Profiles
Gig Economy Market Forecast (2021-2026)
Sales Channel, Distributors, Traders and DealersResearch Findings and Conclusion

Any query? Enquire Here For Discount Or Report Customization

Contact Us:

Web:www.qurateresearch.com
E-mail:[email protected]
Ph: US – +13393375221

Follow Us @

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Note: In order to provide more accurate market forecast, all our reports will be updated before delivery by considering the impact of COVID-19.

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What freelancers should know about navigating the gig economy

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In this episode of In The Know’s Getting Rich, financial expert Carmen Perez chats with certified financial planner Brittney Castro on everything freelancers should know about the gig economy.

The gig economy refers to freelancers, contractors or anyone with a specialized skill set including graphic design, home repairs and web development. But freelancers have to consider things full-time works may not have to, like the cost of private insurance and setting aside taxes. When you’re self-employed understanding personal finance can make or break you but it can also offer you freedoms a nine to five can’t.

“The main feature of this type of work is freelancers get to take on as much or as little work as they want, set their own pay and generally work across a variety of different industries,” Perez said.

A common misconception Castro, the founder of Financially Wise Inc., runs into with freelancers is the belief that creatives can’t handle the financial side of things.

“Creativity is so valuable with finances and wealth creation. If you just stop saying that and take the time to learn and get yourself empowered, you’ll probably be really good at managing money,” Castro said.

So to ensure you get all those sweet freelancing perks, you’ve got to be prepared.

“Make sure you have a separate account for taxes. All and any money that you make, [make sure] you’re setting aside the right amount of taxes for that,” Perez said.

Keeping records in one place whether it’s QuickBooks or a notebook, will make things that much easier on tax day. 

Another piece of advice from Castro was to think of yourself like a business from day one.

“Separate your business and personal checking accounts right away. Have a business name, have a business entity,” Castro said. “Maybe you have to learn bookkeeping, maybe you have to learn health insurance, learn about benefits. It can be frustrating and challenging but with those learning curves you get empowered and you keep going.”

During slow periods when less work is coming in, Perez recommended an emergency fund to ensure bills get paid.

For freelancers who are past the beginner stage and ready to level up, Castro suggested to start investing.

“Investing in things that will grow your money faster than your savings or checking account is the name of the game,” Castro said. “Start with one, figure out where your natural interest lies, focus on that investment category. Then commit to constantly learning.”

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The post What freelancers should know about navigating the gig economy appeared first on In The Know.

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Almost two fifths of gig economy workers get less than a week’s notice over shifts or work patterns

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Close to two-fifths  of UK workers in full or part-time employment are given less than a week’s notice of their shifts or work patterns, according to new research conducted by the Living Wage Foundation. 

The research – based on two surveys, of over 2,000 UK adults in each case[1] – addresses a gap in the UK’s labour market data and understanding of hours insecurity, being the first recent study to assess notice periods for work schedules across the workforce.[2]

The study found that among the 59% of workers whose job involves variable hours or shift work, over three-fifths (62%) reported having less than a week’s notice of their work schedules. At the extreme, 12% of this group – amounting to 7% all working adults – had less than 24 hours’ notice.

While short notice periods affect workers throughout the UK, they are particularly common in London, where almost half (48%) of all workers received less than a week’s notice of work schedules. Scotland (35%), the South of England excluding London (34%), and the North of England (33%)  are areas where short notice periods were less common.

A second survey conducted by the Living Wage Foundation homed in on the experience of full-time, low-paid workers, finding that they were particularly hard hit by short notice of working hours. Of those working full time and paid below the real Living Wage of £10.85 in London and £9.50 in the rest of the UK, more than half (55%) had less than a week’s notice of work schedules, with 15% having less than 24 hours’ notice. Low-paid, full-time workers from Black, Asian and minority ethnic backgrounds[3] (68% of whom had less than a week’s notice of work patterns) and those with children (64%) were also disproportionately affected.

Laura Gardiner, Director, Living Wage Foundation, said:

“Without clear notice of shift patterns provided in good time, millions of workers have had to make impossible choices on childcare, transport and other important aspects of family life. Low-paid workers have been particularly hard hit during the pandemic, with millions struggling to plan their lives due to the double whammy of changing restrictions on economic activity and insufficient notice of work schedules from employers.

Despite this, and the challenges many employers have faced, some have stepped up during this crisis and committed to provide workers with secure, guaranteed hours and notice of shift patterns. These are the businesses that will help us rebuild and recover, and we encourage more employers to follow their example.”

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