Uber drivers may be getting a raise, but it’s a slow one
The Uber drivers union says it’s still expecting to be paid $6 an hour, even though the company has said it will eventually pay drivers at least $15 an hour.
The union says the company will pay drivers a minimum of $11 an hour for “truck driving” work in some areas of the U.S. But as we reported yesterday, Uber will be paying drivers at a rate that’s still well below the minimum wage.
The average driver in the U, the largest and most profitable driver service in the world, makes just $15,000 a year, and drivers on the lower end of the earnings spectrum make just $12,000.
Uber drivers are expected to receive an increase in wages of more than 10% next year, according to the National Employment Law Project, but they’re also likely to be on the hook for a hefty portion of that increase, which is due to a combination of factors including the increased number of Uber drivers, which Uber says will double in the next few years, as well as other factors.
The company says it will start paying drivers an hourly wage of $15 by the end of 2020, which should result in a minimum hourly wage being $11.50 in 2021.
The National Labor Relations Board has yet to rule on the issue, and Uber is appealing the union’s request for a preliminary injunction, which would allow the company to continue to pay drivers $9 an hour starting in 2021, but Uber says it plans to fight the injunction.
In its petition for the preliminary injunction filed with the NLRB, Uber cited the wage increase and “the substantial increase in labor costs associated with Uber” as factors that it believes led to the drivers union’s decision to seek a wage increase.
The drivers union has argued that the $6 per hour wage increase was the largest of any in the last six years and has claimed that the increase will “prevent the union from meeting its obligations” to drivers.
Uber has not yet responded to our request for comment.
Uber’s proposal to pay more than $15 hourly workers to drive for the company is expected to be the first of its kind in the industry, according the NLRA, and it’s likely to make its way to the U., the nation’s largest labor union.
The proposed change to the wage scale has been a hot topic of conversation over the past few weeks, and there have been many reports about it.
The most recent one came from the New York Times on Monday, which said that the company had begun “filing a series of motions to raise” the minimum hourly rate to $15 per hour in New York City, and a company spokesperson had said on Monday that the move would likely be made by the middle of the year.