It’s Time the Gig Economy Paid

Foodora work

Foodora workers are looking for justice for the way they have been ripped off and poorly treated by Foodora. Foodora is like any other gig economy company insofar that it takes an existing business model but places the operating costs onto independent contractors. Due to legal loopholes Foodora workers are easier to exploit and get less protection than workers labelled as employees – and this issue isn’t unique to Foodora. Most gig economy “jobs” are questionable.

In the USA, Trump’s anti-labour government has failed to protect workers so individual states are starting to act. California is looking at legislation to protect people who work in the gig economy.

Last Wednesday, the California assembly passed legislation codifying an important California supreme court decision: in order for companies to treat workers as independent contractors, the workers must be free from company control, doing work that’s not central to the company’s business, and have an independent business in that trade.

Whatever national rule eventually emerges for defining gig workers, they’ll need a different system of social insurance than was the case when steady full-time employment was the norm.

For example, they need income insurance rather than unemployment insurance. One model: If someone’s monthly income dips below their average monthly income from all jobs over the preceding five years, they automatically receive half the difference for up to a year.

Read more.

May Day: When Rules Don’t Apply

Unions have got a bad reputation in North America for reasons I don’t understand. Counterintuitively, large corporations have convinced millions of workers that their jobs are negatively impacted by workers helping each other. It’s been proven that when CEOs talk about how much they make their average wage goes up; those same CEOs don’t want their own workers doing the same. Indeed, silicon valley CEOs went out of their way to ensure that the people they hire cannot even get paid more at other companies.

Today is May Day and a good chance to think about the history and value of the labour movement. We still need to work together today for a better tomorrow and this is a chance to celebrate our successes.

Top executives of leading tech companies secretly agreed among themselves not to hire each other’s employees, thereby restricting wages and job opportunities of the very people to whom they owed their success.

Government investigators discovered the conspiracy and brought charges against the companies, using antitrust law to protect labor rights.

Read more and check out the film.

Unions Help Every Worker Earn More

economic chart

Unions have a bad reputation thanks to years of corporate lobbying and companies blaming workers for executive-induced problems. Despite the negative view of unions they have helped all workers get paid more and get more benefits. Research out of the University of Illinois concludes that unions are directly connected to broader worker rights and better wages throughout the economy, meaning that if you’ve never been part of a union you have benefitted from their work.

The unionization-inequality connection remains even when looking only at nonunion members, or at union members in only public or only private sectors, VanHeuvelen said. For instance, the study suggests that nonunion workers would have seen 3 to 7 percent higher wage growth over their careers if not for the decline in the indirect power of unions.

The connection also remains when looking only at workers who have moved – or only those who have not moved – between either industries or regions of the country. It also remains when looking only at the last three decades or only at workers born since 1960.

Read more.

Worker-Owned Companies can Save Capitalism

conversation

We’re all well aware of the harm caused by the box-box retailers on local communities and their international suppliers; indeed, the people hurt the most are the workers. As a result of the pressures of large multinational corporations mixed with poor working conditions an old solution is gaining new traction. Worker-owned corporative corporations help deal with the profit-focused multinationals by empowering workers to be focussed on the economic sustainability of the company. Worker-owned co-ops are brewing in popularity amongst employees and entrepreneurs who don’t want the companies they built to fail.

“We are in a wave of growth right now,”, Hoover says. Worker-owned cooperatives, she says, have undergone several major “waves” over the last 40 years, each fueled by a different goal. In the 1970s, many newly formed cooperatives were tied to people desiring a counter-cultural lifestyle outside of traditional economies, but today, Hoover observes that more co-ops are being formed in response to economic stressors. “People don’t feel secure at their jobs anymore, and having ownership of something gives them security,” Hoover says. And some aging baby boomers implement co-op models as a way to keep their businesses open after retirement — by transferring ownership to employees.

Similar cooperatives have secured comparable benefits for staff. Whereas the state of Oregon’s minimum wage is $10.25 an hour, Blue Scorcher offers a flat wage of around $15 to $16 per hour including tips. At Austin’s Black Star Co-op brewery, employees start at around $12 per hour and receive pay increases after three months to $13.10 per hour — nearly twice the state’s standard minimum wage. Employees can pursue additional raises if they work towards a role on the managerial-level governing body called the Workers Assembly, which comprises roughly half of the brewery staff. In addition to the living wage, Black Star gives all employees paid time off, and staffers, regardless of their leadership role, are also empowered in the decision-making process. “We operate democratically, so there’s no one person making decisions,” says Black Star business team leader Jodi Mozeika.

Read more.

Winning Over Winnipeg Workers

Here’s an inspiring piece of one entrepreneur in Winnipeg who saw a labour shortage and a surplus of people and put the two together. He, with the help of the government, created a program to train unemployed and young Canadian First Nation people to be able to work at his company. That might not sound extraordinary, but apparently this went against convention and shocked a lot of others in the field.

During a labour crunch four years ago, Mr. Saulnier felt the familiar pressure to hire workers from abroad. Some tycoons in the industrial construction business even took him aside and told him he could only win bids on massive infrastructure jobs if he had a large and secure labour pool. And the only way to assure that – at least as conventional thinking goes – was to launch an overseas recruitment program.

But Mr. Saulnier isn’t exactly conventional. He saw an untapped source of labour much closer to home.

“I grew up in a small Northern Ontario town where I was surrounded by first nations communities, where there were very good men and women who are just wishing for a job,” he explained in an interview. “Against the advice of business advisers and industry colleagues, we decided to seek them out.”

Keep reading at the Globe and Mail.

Thanks to Greg!

Scroll To Top
%d bloggers like this: