 Dear neighbor,
The Minneapolis City Council voted to require Transportation Network Companies like Uber and Lyft to pay drivers rates that are equivalent to the city’s $15.57 minimum wage authored by my office, Council Member Wonsley, and Council Member Osman.
Mayor Frey vetoed this ordinance and today we overrode his veto by a 10-3 vote. This historic victory for this minimum wage ordinance comes after over eighteen months of labor organizing by drivers and legislative work by the City Council and it represents a major step forward for efforts to improve wages and working conditions for drivers across Minneapolis.
The ordinance requires that TNCs pay drivers a minimum of $1.40 per mile and $0.51 per minute for all portions of a ride occurring within Minneapolis, the rates that best approximate the city’s $15.57 minimum wage. Recently released data from the Minnesota Department of Labor and Industry reports that the median earnings for drivers in the metro area is $13.63, with 25% of drivers in the metro area earning under $10.54 per hour. The wages in this ordinance is also similar to what is currently being proposed at the State Legislature.
Throughout the legislative process, Mayor Frey has centered on Uber and Lyft claims that they would leave the city if subjected to the local minimum wage. Other cities have faced these claims and grappled with the choice between prioritizing profits for billion-dollar companies or living wages and basic rights for workers. Minneapolis proudly joins others like Seattle and New York in siding with workers. Advancing a minimum wage for ride-share companies has also led to a number of startup TNCs working to obtain licenses in Minneapolis, including the worker-owned Driver Coop which is currently operating in New York and Denver.
Uber and Lyft pulled out all the stops to try and scare the Council into weakening and delaying this policy, but we stood strong with drivers because we believe in people over profits. The Minneapolis City Council has also often led the state when it comes to workers’ rights, and I hope that today’s vote leads the legislature to pass a statewide policy to go alongside ours.
The policy was written in consultation with drivers, riders, the public, city staff, national experts, and state legislators. In August of 2023, Council passed the Fair Drives, Safe Rides ordinance that included minimum compensation, drivers’ rights, and safety protections for both drivers and riders. The Mayor vetoed the policy. In October 2023, we introduced two separate ordinances: one for minimum compensation, and another for rights and protections. Following today’s victory on minimum compensation, we will now work with co-authors to advance the rights and protections ordinance through the legislative process.
The Council Members who voted to override the veto were Council Members Wonsley, Ellison, Osman, Cashman, Jenkins, Chavez, Koski, Chowdhury, Vice President Chughtai, and President Payne. |
