An interesting take: the government is proposing minimum wage standards for gig workers. The paper went with ‘Now you might have to pay up to $15 to get fast food delivered’.

  • if labour cost went up 10% suddenly (yeah right)

    Uber is saying the cost will go up by 85%…

    They’re probably full of shit - but I’d expect it to be more than 10%… Labor isn’t raising the cost of labour, they are improving worker rights. For example ordinary casual workers often have a minimum pay of 4 hours work.

    You can give someone a 20 minute shift if you want, but you better pay them 4 hours for that day… otherwise the manager could spend the next five years in jail for wage theft.

    I have’t read through the proposed changes, but if they bring that to the gig economy… it won’t be possible to pay a worker $6 to deliver a burger. You’ll likely have to pay the worker at least a hundred bucks or so, and it’s up to the business to figure out how to give the worker at least half a day of jobs back to back.

    •  Salvo   ( @Salvo@aussie.zone ) 
      link
      fedilink
      English
      18 months ago

      If they claim that increasing Gig economy wages to minimum wage increases costs by 85%, they have just admitted that their business model is seriously flawed.

      Anyone who has money invested in these corporate leeches needs to cut their losses and cash out ASAP.