Sunday, March 27, 2016

Bottom Of The Economic Ladder and Not Moving Up Anytime Soon

The Teamsters (and a group of more intelligent Lyft drivers) are contesting a settlement agreed to by a group of dim-witted Lyft drivers.  The class action lawsuit originally sought to define Lyft drivers as “employees”-- but the proposed settlement of $12.25 million (which would apply to all 100,000 California Lyft drivers) falls much short of that.  Strangely, the settlement would leave Lyft drivers classified as “independent contractors” and continue to shut them out of most worker protections and financial benefits they would have enjoyed as employees.

Even the judge expressed skepticism at the proposed agreement.  The court questioned why it should approve a settlement that resulted in drivers ending up “closer to independent contractor status” than before, a result that is “contrary to the original goal of the lawsuit”.

You would think benefits and job security would be worth something to a Lyft driver.   But going by the terms of the settlement, getting benefits and job security are valued at next to nothing-- with the drivers instead receiving a one time pay out of $53 to $679 dollars each. 

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