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Transportation Businesses The Almighty Buck United Kingdom

Uber Is Treating Its Drivers As Sweated Labor, Says Report (theguardian.com) 436

Uber treats its drivers as Victorian-style "sweated labor", with some taking home less than the minimum wage, according to a report into its working conditions based on the testimony of dozens of drivers. From a report on The Guardian: Drivers at the taxi-hailing app company reported feeling forced to work extremely long hours, sometimes more than 70 a week, just to make a basic living, said Frank Field, the Labor MP and chair of the work and pensions committee. Field received testimony from 83 drivers who said they often took home significantly less than the "national living wage" after paying their running costs. The report says they described conditions that matched the Victorian definition of sweated labor: "when earnings were barely sufficient to sustain existence, hours of labor were such as to make lives of workers periods of ceaseless toil; and conditions were injurious to the health of workers and dangerous to the public."
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Uber Is Treating Its Drivers As Sweated Labor, Says Report

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  • "Feel forced?" (Score:5, Insightful)

    by aldousd666 ( 640240 ) on Friday December 09, 2016 @05:42PM (#53455867) Journal
    Nobody is forcing anyone to drive for Uber. Quit if you don't like it. Holy crap there's someone willing to pay you to drive your own car. If that's not your bag, fine. But go somewhere else to complain about it.
    • Re:"Feel forced?" (Score:5, Insightful)

      by harrkev ( 623093 ) <kevin.harrelson@gm[ ].com ['ail' in gap]> on Friday December 09, 2016 @05:47PM (#53455907) Homepage

      Next step: pay Uber drivers more, so Uber has to charge more.

      Eventual outcome: Uber costs just as much as a taxi, so you might as well call a taxi in the first place.

      • The thing is that, in the U.S., there are vast swaths of the country where there is no taxi service, or none within an hour. Uber can be handy at times even if it's at a taxi price.
      • pump n dump scam (Score:5, Interesting)

        by TiggertheMad ( 556308 ) on Friday December 09, 2016 @07:38PM (#53456643) Journal
        They are hemorrhaging billions annually, so eventually they will implode and the problem will solve itself. If they actually manage to achieve their goal of a monopoly on the transportation market, they will just get nuked with the Sherman anti-trust act.

        I think they know this, they are just a big pump n dump scam for early investors.
      • Re:"Feel forced?" (Score:5, Interesting)

        by SvnLyrBrto ( 62138 ) on Friday December 09, 2016 @08:01PM (#53456767)

        And I'll still choose Uber over a Cab at, or even above, taxi prices. I've been using them since they called themselves "Ubercab", only offered the town car service, were only available in San Francisco, and were, yes, more expensive than a taxi.

        Why? Because Uber drivers show up where and when they are dispatched. They will pick you up in the avenues (The Sunset and Richmond districts.), and don't throw a hissy fit when you need to be driven out there. They don't play the "my credit card reader is broken, cash only" scam. And their cars are clean, well-maintained, and don't stink of smoke, vomit or pee. None of the same is true of cabbies.

        The only reason Uber, Lyft, and the like were able to catch on is because the legacy taxi companies offer an appallingly dismal service. They made their bed. Now they can lie in it. And I'll go on using the superior service; even if the price goes back up to what it was before they introduced UberX.

    • Re: (Score:2, Insightful)

      by jwymanm ( 627857 )
      Tell me about it. If it doesn't work as a full time job so what? Pay your car loan only then. What the hell is wrong with people that think everything should just work perfectly for them? You sit in a car and push a frigging pedal. Yes it hurts your car and the costs can be greater than the reward part of the time. Obviously there is an agenda to crowd source anger against uber/lyft etc going on right now. Not sure if the drivers are getting caught up in it (since you can't rely on most "news" anymore), the
    • by rsilvergun ( 571051 ) on Friday December 09, 2016 @06:09PM (#53456055)
      who's never had a rent check bounce. Or never had to pay out of pocket to fix a kid's broken arm. Or been born in a rust belt town when the last factory just left and/or automated.

      That's the essence of modern American Slavery. Nobody's _ever_ forcing you. You're completely free to starve to death and die in the streets. It's why the South abandoned real slavery. Wage Slavery is ever so much more cost effective.
      • by Solandri ( 704621 ) on Friday December 09, 2016 @07:31PM (#53456603)
        Wage slavery is never cost effective except for the slave owner. That's what makes it an unstable system which can only be perpetuated by government collusion, or lack of willpower by the employees to break out of slavery. e.g. Detroit used to have slave-level wages. Henry Ford decided to set up shop there and paid his factory workers much more than the prevailing wage. He accidentally discovered that when he paid people a fair wage, not only did their productivity increase, but they used those wages to buy the very product they were helping build. The resulting feedback loop multiplied his company's revenue and turned the Ford Motor Company into the behemoth it is today. No longer were cars affordable only to the privileged elite; the average middle class worker (by Ford factory standards) could afford to buy one.

        If the only options you see are being a wage slave or starving to death, then you haven't really tried. A location where the people are being paid slave wages or starving is ripe for a new company to set up shop and hire willing employees for less than they'd have to pay at well-established locations. As more of these people become employed and spend their wages on local merchants, the economy picks up. There are fewer unemployed, resulting in wages increasing. This is how the market equalizes geographic wage inequality. If this isn't happening, then there are fundamental problems with the region not caused by slave wages. Maybe the location is too far from markets, or the highway/railroad access is poor, or people just don't want to live in that location. Unless the government is intentionally keeping business out, low wages are a symptom not a cause.

        And yes I've had a rent check bounce. A rent check a tenant gave me. I was stupid and deposited it directly into our payroll bank account since it almost exactly topped off the amount we needed to make payroll. Normally I transfer the payroll money from our primary checking account, but I was lazy and decided to save a little work by depositing the checks directly into payroll. As a result I got charged a bounced check fee, but more importantly a bunch of my employees' paychecks bounced, causing more bounced check fees for both them and myself. The whole thing was a disaster. I called in each employee who was affected, apologized to them in person, and told them to bring in their bank statement so I could reimburse their bounced check fee (or fees if they then wrote checks which bounced). The ones who needed the money immediately, I paid in cash out of my own pocket. All told it was over $1300 in bank fees incurred because I was stupid/lazy, and because the person who wrote the first check did so knowing he didn't have enough money to cover it but thought it would be easier turning his problem into my problem.

        It's cliche, but it's true. Your employees are your most valuable asset. A good business will do everything it can to protect them and to retain them. A business which pays slave wages is just ripe to be squeezed out by a business which will pay better (fair) wages. The only way a slave wage business can stay in business is if the government is blocking competing businesses, or if people like you have so discouraged others with your gloom and doom hopeless corporate feudalism talk that they don't even bother trying to start up their own business to compete.
        • by serviscope_minor ( 664417 ) on Saturday December 10, 2016 @04:50AM (#53458279) Journal

          or lack of willpower by the employees to break out of slavery

          Ah, it's the slaves fault that they're slaves, then.

          If the only options you see are being a wage slave or starving to death, then you haven't really tried. A location where the people are being paid slave wages or starving is ripe for a new company to set up shop and hire willing employees for less than they'd have to pay at well-established locations.

          Ah yes, it's so easy to set up a company when you're a wage slave and have no spare resources with which to set up the company. If you don't you just lack the willpower to starve to death for a few months or years before your company takes off.

          Oh and if you don't have a head for business, you deserve to be a wage slave because fuck you that's why.

          A business which pays slave wages is just ripe to be squeezed out by a business which will pay better (fair) wages.

          Oh yes, that's precisely how things worked in Victorian England.

          You know, or not.that they don't even bother trying to start up their own business to compete.

          Starting a business is the highest form of intellect and worth. If you can't, then die in filth, scum. You deserve worse!

    • The real problem is that the economy is so desperate that people feel that they have to work in the conditions that Uber presents them with. I can't really blame Uber for treating people like crap, because corporations are soulless entities that try to make as much money as they can. But in a good economy the conditions have to be better in order to attract employees.
    • Re: (Score:2, Insightful)

      Comment removed based on user account deletion
    • Comment removed based on user account deletion
    • No but they're forcing honest taxi drivers out of business. You can't say "just don't drive for Uber" because the drivers have little negotiating power. One of the primary purposes of government is to protect those in weak negotiating positions.
  • Don't worry (Score:4, Insightful)

    by FunkSoulBrother ( 140893 ) on Friday December 09, 2016 @05:46PM (#53455901)

    The Slashdot alt-right crew (really 75% of the commenting userbase that has aged into that lovely target demographic) will be here in no time to tell you about how this job, like fast food or retail, isn't deserving of a living wage and only exists for 18 year old suburban kids to make pocket money off of.

    And to (lol) pay their way through college with (STEM majors only deserving of a living, of course).

    • ROFL I took a couple minutes to edit my post and was proven right at least twice already by the time I clicked 'Submit'.

    • by quax ( 19371 )

      Sad but true.

      The US is going to be so screwed when more and more of the blue collar jobs inevitably disappear.

      • Re:Don't worry (Score:5, Insightful)

        by MightyMartian ( 840721 ) on Friday December 09, 2016 @07:51PM (#53456707) Journal

        It will certainly be screwed if it keeps allowing corporate interests to arguing away the taxes they should be paying.

        I'm genuinely concerned that events like Brexit and the Trump victory are the opening shots in some sort of modern day French revolution. The aristocrats of our age are as detached from reality as the French aristocrats were, and as unwilling to accept the responsibilities that come with vast accrual of wealth. They are creating a dangerously unstable situation, and when the Trumps of the world prove as incapable or unwilling to rebalance economic and social issues, then we may be facing a far less savory group of revolutionaries. And, as the French Revolution so ably demonstrated, even wealth isnt an absolute shield.

        • by quax ( 19371 )

          The anti-establishment mood certainly feels dark enough.

          Revolutions are rarely pretty neither for those revolting nor those on the top.

    • Or, you know, people could just get paid what somebody thinks their labor is worth.

      For example, would you want to pay somebody $30 an hour just to empty all of the trash cans where you work?

      • Or, you know, people could just get paid what somebody thinks their labor is worth.

        For example, would you want to pay somebody $30 an hour just to empty all of the trash cans where you work?

        $15 would be a good start, indexed to inflation. ;-)

        Those fighting for it would do well to mark 2016 and demand whatever $15 in 2016 dollars is each year this gets dragged out. Otherwise they are only going to get the equivalent of $10.75 by the time it passes, which will dwindle away every year re-creating the same problem for the next generation.

        • Why not? (Score:3, Insightful)

          by JBMcB ( 73720 )

          Why not $30? Heck, why not $50? More is better, no? Don't you want workers to be well paid?

          • https://en.wikipedia.org/wiki/Reductio_ad_absurdum

            Dick.

            • So, you don't have a good argument why the minimum wage shouldn't be $30 an hour?

              Why is $15 acceptable but $30 is not?

              • http://www.economist.com/blogs... [economist.com] http://livingwage.mit.edu/page... [mit.edu] What we try to do is to calculate what amount of money allow somebody to cover the basic necessities. Maybe there is an argument for $30 but it's not "more is better." The argument for a living wage is that if somebody works a 40-60 hour week, they should be able to afford food, clothing, shelter, and medical care. I don't know of any places where $30/hr would be needed for this. But the "more is better" argument is a ridiculous straw
          • Why not $30? Heck, why not $50? More is better, no? Don't you want workers to be well paid?

            Because the higher it is, the stronger the negative consequences are. A minimum wage should be a minimum (it is IN the name), it should just be high enough to do its job, which is to ensure people can actually live off the wage.

      • by jlowery ( 47102 )

        I would like people who work hard not to starve in the process.

    • Re:Don't worry (Score:5, Insightful)

      by Altus ( 1034 ) on Friday December 09, 2016 @06:00PM (#53455993) Homepage

      I'm not so sure its about aging... I think its mostly that anyone else has given up on this place and moved on... arguing with Alt right or hyper libertarian or whatever the flavor of the month zealots are, its exhausting... and this place isn't important enough anymore to make it worth defending from idiots with poorly formed world views who can't see past the end of their own noses.

      There are a few old timers still around... like me they tend to post less an less and just ignore the cesspool that this place has become out of a sense of nostalgia.

      • by washort ( 6555 )
        When weren't comments here a cesspool? It's part of the charm.
      • thanks for posting what you can. We could use more old timers like you.
    • by rsilvergun ( 571051 ) on Friday December 09, 2016 @06:11PM (#53456075)
      but my God, you make a good point in all that. I'd been noticing how far right /. had moved and wondering why for some time. It hadn't occurred to me that they'd just aged into right wing politics like their parents from the 60s did... Hows that saying go? Everything old is new again...
      • by Rob Riggs ( 6418 )
        I think if you look at the user IDs of the shit-posting alt-right accounts, you will find they are mostly new accounts. There are a few that have been around for a long time, but they didn't "age" into being dicks. They always were.
    • I would say it's more like: Congratulations! You thought you could undercut the professional taxi industry like a Chinese laborer. Well guess what....you're getting paid like a Chinese laborer. What, did you think you could have your cake and eat it too?

    • by caseih ( 160668 )

      I'm not right-wing at all, but I was wondering what all the hubbub was about here. As far as I know, Uber didn't even exist just a few years ago. Furthermore they billed themselves as a "ride-sharing" company, which to mean means you'd be a lunatic to quit your day job and drive for uber full time. Presumably those driving for uber did something else not so long ago for their primary income.

      But if your sentiment is that Uber should be treated as any other taxi company, I agree with you there. And stories

  • Drivers at the taxi-hailing app company reported feeling forced to work extremely long hours, sometimes more than 70 a week, just to make a basic living ...

    Sounds like a typical Silicon Valley startup to me.

  • I thought the whole point of Uber was to pick up some extra money on the side? I didn't think it was designed to be treated like a full-time job.
    • Re:Wait what? (Score:4, Interesting)

      by Jzanu ( 668651 ) on Friday December 09, 2016 @06:13PM (#53456091)
      Uber profits from making it into one [xchangeleasing.com].
    • by ghoul ( 157158 ) on Friday December 09, 2016 @06:20PM (#53456149)

      The Uber business model only works for newly laid off workers who have a nice car with car payments to make. Its not meant to be a fulltime job. The entire gig economy including iOS apps only took off as in 2008 a lot of people lost their jobs but they still had cars, computers and loads of time on their hand. As we closer to full employment people who have a choice have moved away from gigs. Taxi companies are built upon the exploitation of illegal immigrant drivers. Uber as a high visibility company cannot compete with Taxi companies as it cant hire illegal immigrants and pay them sweat wages under the table. At the same time driving a cab will not support a minimum wage so the best thing for Uber would be to go back to being a gig company. Put a hard cap of 10 hours a week on driving for a driver - that will remove the entire pool of drivers expecting to make a living from Uber, stop promoting Uber driving as a full time job and stop giving leases to drivers to buy cars to drive for Uber. Stop trying to grow for growth's sake. Stay at the size of a gig economy company like a temp agency. They have some good software - license it to taxi companies and let them use it for managing their own fleets in a mutli-tenant kind of model.

      • by Jzanu ( 668651 )
        Best post yet, insightful and fascinating - wish I had mod points to give you.
      • > Stop trying to grow for growth's sake.

        If they do this, Lyft and local services will step into the niche they leave empty.

      • The Uber business model only works for newly laid off workers who have a nice car with car payments to make. Its not meant to be a fulltime job. The entire gig economy including iOS apps only took off as in 2008 a lot of people lost their jobs but they still had cars, computers and loads of time on their hand. As we closer to full employment people who have a choice have moved away from gigs. Taxi companies are built upon the exploitation of illegal immigrant drivers. Uber as a high visibility company cannot compete with Taxi companies as it cant hire illegal immigrants and pay them sweat wages under the table. At the same time driving a cab will not support a minimum wage so the best thing for Uber would be to go back to being a gig company. Put a hard cap of 10 hours a week on driving for a driver - that will remove the entire pool of drivers expecting to make a living from Uber, stop promoting Uber driving as a full time job and stop giving leases to drivers to buy cars to drive for Uber. Stop trying to grow for growth's sake. Stay at the size of a gig economy company like a temp agency. They have some good software - license it to taxi companies and let them use it for managing their own fleets in a mutli-tenant kind of model.

        19% of Uber drivers are full-time (35 hours per week and more.) and (51%) of Uber drivers work 15 hours a week. Only 12 states issue driving licenses to illegal immigrants, a Taxi company would never hire people without licenses as they wouldn't be covered by insurance and they would be legally liable for any damage the Unlicensed driver does. Do some basic searches before posting something full of inaccuracies and speculation

        • by ghoul ( 157158 )

          There are many ways to be illegal - you may be in the country legally but work illegally. Tourists on B1 as well as Students on F1 are entitled to get licenses and drive cars. Many students moonlight as cab drivers. Similarly refugees awaiting work permits moonlight as cab driver. Its one of the few jobs you can do without a US based credential as long as you know how to drive.

      • Actually the immigrant drivers are quite legal. Interesting that they haven't made it to Vegas. Most of the drivers I've met are transplanted Americans from all over the country.
    • Irrelevant. That's kind of like saying "Yes, I am breaking the law, but I was only borrowing, not stealing it. I fully intend to give the bread back after I eat it." It's still illegal, and making that argument makes you look like an fascist claiming its not a 'real job', it's just something I pay them for working for me.

      There is no "I don't expect my employees to earn a living from the amount I pay them" exception. There are exceptions for family, charity, and internships (and a few stupid ones for fa

  • Rigged market (Score:5, Insightful)

    by ezdiy ( 2717051 ) on Friday December 09, 2016 @08:11PM (#53456827)
    A day trader perspective of TFA:

    Uber dictates their working patterns once they have logged on, has raised its commission while cutting the rates they can charge, and imposes lockouts from its system if drivers turn down too many jobs.

    Translation:

    Market exchange dictates the trading hours, imposes ridiculous trading commision fees (15-30%), puts a cap on the ask offers and kicks you out if you don't execute enough trades.

    Now, why on earth would sellers stay on a market this shitty? Bandwagon effect. Other competing exchanges don't have the liquidity. Why people use Microsoft products? Bandwagon effect. Once you get something shitty going, it can keep going on its momentum alone.

    That the exchange can dictate price levels really is a problem because it creates race-to-the-bottom pressures - negative feedback loop - drivers can't go to competing markets which treat em better, because their cheap labor keeps those alternative companies out of the business (and even if those adopt similiarly shitty business practices, they end up being no better than uber). Thus the accusations of entrapment.

    If Uber wants to be merely a clearing house for car hailing settlements that's fine, but people should call it out on their attempts to corner the market in order to keep their first mover monopoly.

  • Those who have taken on debt to finance their vehicles feel trapped and have little choice but to work unsafe hours to service their loans and feed their families, it says.

    This is where you learn to figure out what your costs are vs. your revenues, and then see if you make a decent living. Doing so AFTER you've already gone into debt for your business model is always a bad idea. Also, wasn't the point of Uber that you could use your existing car that was just sitting around doing nothing? Why would you finance a vehicle?

  • Why do we need a report for this? This was known from start. Anyone who thought otherwise has to be either blind or completely disconnected with reality. If you got into the service thinking you'd have the same conditions of a regular stable job, you were conned. Get out. Things won't get better. Uber drivers who are putting their livelihoods in stake for the company only have themselves and their ignorance to blame for. I'm sorry, but it's the f*cking true. In this case, I have absolutely no sympathy. Wake

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