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"... Uber, Lyft, and DoorDash will benefit most from the new regime. But companies beyond the gig economy saw their opportunity to get in on the low-cost labor pool. In January, grocery giants Vons, Pavilions, and Albertsons announced that they’d be firing their full-time, benefits-receiving delivery staff, venerated just months ago as “essential workers,” and replacing them with subcontractors from DoorDash, which has secured a nationwide deal to take over the service. Only unionized staff was spared in the layoffs. That move is a startling sign of things to come, as companies realize that Prop 22 allows them to subcontract the same labor at a lower cost ... [...] On top of that, those gig companies that paid handsomely to create and market Prop 22 to voters are now passing on the cost for these scant benefits to consumers. In late December, Uber announced that customers in California would see prices increase for rides and food deliveries to help cover the costs of the new benefits."
"... Uber, Lyft, and DoorDash will benefit most from the new regime. But companies beyond the gig economy saw their opportunity to get in on the low-cost labor pool. In January, grocery giants Vons, Pavilions, and Albertsons announced that they’d be firing their full-time, benefits-receiving delivery staff, venerated just months ago as “essential workers,” and replacing them with subcontractors from DoorDash, which has secured a nationwide deal to take over the service. Only unionized staff was spared in the layoffs. That move is a startling sign of things to come, as companies realize that Prop 22 allows them to subcontract the same labor at a lower cost ... [...] On top of that, those gig companies that paid handsomely to create and market Prop 22 to voters are now passing on the cost for these scant benefits to consumers. In late December, Uber announced that customers in California would see prices increase for rides and food deliveries to help cover the costs of the new benefits."
That move is a startling sign of things to come, as companies realize that Prop 22 allows them to subcontract the same labor at a lower cost, making Uber, Lyft, DoorDash, Postmates, and Grubhub look more like traditional staffing agencies than innovative, high-tech products.
That move is a startling sign of things to come, as companies realize that Prop 22 allows them to subcontract the same labor at a lower cost, making Uber, Lyft, DoorDash, Postmates, and Grubhub look more like traditional staffing agencies than innovative, high-tech products.
Meanwhile, health care stipends provided under the new Prop 22–devised “benefits” program are proving to be a pittance. Uber has offered no more than $400 a month toward health insurance for drivers who hit maximum hours standards, a small percentage of the overall cost (the average premium for the lowest level of coverage on the ACA exchanges for a family is $1,041 per month).
Meanwhile, health care stipends provided under the new Prop 22–devised “benefits” program are proving to be a pittance. Uber has offered no more than $400 a month toward health insurance for drivers who hit maximum hours standards, a small percentage of the overall cost (the average premium for the lowest level of coverage on the ACA exchanges for a family is $1,041 per month).
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