"NYC raised delivery pay. It locked out over 42,000 workers."
"When labor costs rise under a binding wage floor, firms have incentives to cut excess supply and minimize idle time. In practice, platforms responded by limiting simultaneous log-ins, tightening scheduling and concentrating orders among a core group of workers."
"The report from the industry-affiliated Chamber of Progress, titled "From Pickup Game to Starting Lineup," confirms what the city Department of Consumer and Worker Protection has already shown: Wages surged after the minimum pay standard went into effect in July 2024, along with the total number of deliveries and revenue from deliveries."
"Worker groups have criticized the app companies for saying the minimum wage rules forced the companies to block workers from the apps or deactivate their accounts without giving a reason or notice. The City Council last year passed a law restricting deactivations, but not temporary lockouts."
NYC’s delivery minimum wage more than doubled worker earnings after taking effect in July 2024. Delivery counts and delivery revenue increased alongside the wage gains. The smaller delivery workforce was described as the mechanism that enabled higher per-worker earnings. Platform companies responded to higher labor costs by reducing excess supply and minimizing idle time. Reported responses included limiting simultaneous log-ins, tightening scheduling, and concentrating orders among a core group of workers. Worker groups criticized app companies for blocking access without clear reasons or notice. A City Council law restricted deactivations but did not cover temporary lockouts. Industry representatives argued that limiting app access was necessary to meet the required minimum wage.
Read at Streetsblog New York City
Unable to calculate read time
Collection
[
|
...
]