In a landmark move that will set the tone for rideshare driver wages across the country, Minnesota has hammered out a compromise to secure a minimum wage standard. According to a bulletin from the Minneapolis City Council, the agreement, announced on May 6th, establishes a statewide minimum pay rate for rideshare workers.
Making waves in the gig economy, House Majority Leader Jamie Long (DFL-Minneapolis) praised the breakthrough, saying, "This compromise represents significant movement from the Minneapolis City Council as we all work towards ensuring drivers in our state are fairly paid." Yet before these wages were even a blip on the radar, it was the drivers' organizing that allowed the city and state leaders to reach this historic accord. Detailed in the legislation, drivers will earn $1.27 per mile and $0.49 per minute, which squares with payment standards in other major metros.
Senate Majority Leader Erin Murphy (DFL-St. Paul) hailed the efforts of all parties involved. "This agreement is the result of hard work from the authors and stakeholders to ensure every Minnesota community has access to safe, reliable transportation," Murphy said in the official press release. The proposed wage reflects an earnest attempt to equilibrate the benefit to the state's rideshare cadre and the customers they serve.
In a show of unity, Minneapolis City Council President Elliott Payne celebrated the partnership that made this possible. Negotiating with state leaders, Payne remarked, "It was refreshing to work with our state leaders who were willing to engage in tough conversations without compromising the core DFL value of making sure every worker, regardless of profession, can earn a minimum wage." Debates often become trench wars with positions as fortified bunkers – this time, dialogue paved the way for a truce.
State legislators are also recognizing the potential impact of this move. “This legislation will make Minnesota a national leader on the issue of rideshare wages and worker rights,” Senator Omar Fateh (DFL-Minneapolis) said. Critical in shaping the conversations and legislation, Rep. Hodan Hassan (DFL-Minneapolis) stressed the importance of treating drivers with respect and fair pay. Meanwhile, Minneapolis City Councilmember Robin Wonsley pointed out that it was due to the initial bold action by the council and the drivers' relentless organizing that this framework was possible. Wonsley told the Minneapolis City Council, “It is because of those actions and drivers' powerful organizing that city and state leaders have been able to reach this historic agreement to give 10,000 drivers a living wage.”
The legislation is poised to make a compelling difference not just for drivers but for the rideshare companies themselves. In comments made by Senator Jim Abeler (R-Anoka), a co-author of the rideshare legislation, indicated that these wages will provide "both the drivers and rideshare companies with the stability they need to continue to operate." As the first of its kind in Minnesota, the legislation is an exemplar for comparable efforts nationwide, setting a precedent for the oft-contentious gig economy debate.
