Where Did Postmates Find All These Workers Who Don't Want Their Jobs to Improve?
The future of the “gig economy” is on the table in California, where the legislature is considering a bill that would make it much harder to categorize workers as independent contractors, rather than actual employees. Needless to say, companies are going all out to oppose it. Postmates even got 1,600 of its own workers to speak out against it. Uhh… how?
Postmates is a perfect example of a tech-driven “gig economy” company that depends on the fiction that its workers are contractors (meaning the company owes them little except money) rather than employees (which would mean that the company owes them many workplace protections and benefits enshrined by law, and that they could unionize). Do the math: Postmates says it operates in 3,500 cities, but only has “800+” employees. Hmmm.
The stakes are high. Organized labor, for the most part, is determined to win employee classification for these gig workers, reasoning that it is the only way that people will be able to have stable lives and a living wage in the economy of the future, preventing the American job market from descending into an all-freelance dystopia of nonstop “gig” work just to stay afloat. The companies, on the other hand, see it as a threat to their lucrative business models as responsibility-free middlemen; one analysis found that the bill could cost Uber alone $500 million per year.
The issue is so threatening, in fact, that companies have made the political calculation that they will need to offer up an alternative if they want to have any hope of diverting public will away from the bill in question. And so the CEOs of companies like Uber and Lyft are now publicly advocating a sort of pale and toothless imitation of the bill: a “drivers organization” (not a union) and “certain benefits” (but not the same benefits that go to employees), in exchange for continuing to classify workers as independent contractors. The CEO of Postmates wrote his own op-ed calling for a similar package of proposals that “ends this confusion and empowers gig workers without taking away their flexibility or ability to innovate.”
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