Minneapolis council members seek study of proposals to hike rideshare drivers' pay

Uber and Lyft drivers lobbying for a Minneapolis ordinance to increase their pay and improve workplace conditions will have to wait until the New Year, according to City Council members pushing for the changes.

In a joint statement issued Nov. 14, Council Members Robin Wonsley, Jamal Osman and Jason Chavez said work on two rideshare proposals will continue into 2024 to give city staffers more time to consider different options for paying drivers more.

Wonsley said she had wanted to resolve the issue this year after a similar measure passed by the Legislature was vetoed by Gov. Tim Walz in May, and after Mayor Jacob Frey vetoed the City Council's first proposed rideshare ordinance in August.

The Uber and Lyft rideshare companies lobbied against both the state bill and the ordinance vetoed by Frey, threatening to limit operations across Minnesota if the bill became law and ceasing operations in Minneapolis if the ordinance was enacted.

Wonsley, Osman and Chavez said in their statement that they want city staffers to analyze three "minimum compensation models" for rideshare drivers, "so that Council and the public can have clarity on which model gets drivers closest to a minimum wage equivalent."

The staff analysis will be presented to the council at its Jan. 19 meeting.

The City Council in August passed a rideshare ordinance to guarantee drivers a minimum compensation of 51 cents per minute and $1.40 per mile while taking customers within the city. Compensation would increase annually, proportionate to the city's minimum wage.

That ordinance was vetoed by Frey, who said he supported improved wages and workplace conditions for rideshare drivers but wanted to analyze more data before making a decision.

Wonsley, Chavez and Osman came back in September with two new rideshare proposals. Wonsley's office told Sahan Journal at the time that the new ordinances could go to the full council for a vote in October, but the ordinances were instead referred to city staff.

The three council members are introducing the following three payment options for analysis:

Their announcement came as dissent continues to grow in the Minnesota Uber/Lyft Drivers Association (MULDA), a rideshare organization that has been integral in pushing for improvements.

Before Walz's veto, MULDA members rallied at the State Capitol calling for the governor's support. After his veto, Walz announced a legislative rideshare task force to recommend policy changes for the 2024 legislative session. Eid Ali, then president of MULDA, was named to the task force to represent drivers.

But MULDA has struggled in recent months. Mohamed Egal, a MULDA member, told Sahan Journal that the group had recently split in two due to infighting. He said he's leading some members of MULDA while Ali leads others.

Egal said he and some MULDA members believe Ali made decisions that didn't align with their wishes. He said they also believe Ali is unwilling to negotiate with Uber, Walz or Frey.

"This problem could have been solved easily, but Eid was not listening to us and he was not listening to anybody," Egal said.

Ali did not return messages from Sahan Journal seeking comment.

Egal said drivers still support the governor's task force even though they don't see themselves represented among its members. Drivers claiming to belong to MULDA interrupted a task force meeting last month to ask for new representatives, saying that Ali didn't represent them anymore. The governor's office told Sahan Journal there have been no changes to the task force.

MULDA has long competed against the Minnesota Rideshare Drivers Association (MRDA) for the drivers' support and participation. Both groups are composed mostly of East African drivers, but their approaches have been different: MULDA has focused on changing policy through elected officials on the city and state levels, while MRDA has met with Uber directly and has at times spoken out against the proposed ordinances in Minneapolis.

Meanwhile, Uber has announced new policies to help drivers facing deactivation, when the rideshare company shuts down a driver's account and prevents them from working.

Deactivations were a major issue with Minnesota rideshare drivers who advocated for the bill vetoed by Walz. They said deactivated drivers had no path to contest the action, which has sometimes occurred when riders got upset with drivers who were enforcing rules.

Uber said it's rolling out a process that allows drivers to learn why their account was deactivated and to seek an additional review of the decision. The rideshare company also committed to protecting drivers from false allegations and unfair ratings that could lead to deactivation.

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This story comes to you from Sahan Journal, a nonprofit newsroom dedicated to covering Minnesota's immigrants and communities of color. Sign up for a free newsletter to receive Sahan's stories in your inbox.