Vikrum Aiyer, the now-former vp of world public coverage and strategic communications at Postmates, penned a memo to his former colleagues and different stakeholders within the gig economic system outlining what he thinks must occur subsequent within the business.
In his letter, Aiyer says “it could be a mistake for us to suppose that gentle tweaks to employee classification, or a single state poll measure, create a sturdy path ahead for meaningfully addressing what People really fear about: the prospect to work, maintain their households, and never fret about what comes subsequent.”
He goes on to say how tech platforms, labor advocates and different stakeholders “will not be prepared to evolve and provides an inch on their respective fashions,” which suggests “we’ll by no means see progress that each empowers on-demand work and improves the social security internet.” Aiyer desires “this uncivil warfare that pits employees in opposition to capital, tech in opposition to labor unions, conservative versus liberal” to finish.
Within the letter, Aiyer places forth a handful of suggestions for on-demand tech firms. He proposes, for instance, that firms give board seats with voting rights to employees, embrace transportable advantages “that may shut the hole between what’s out there to W2 and unbiased employees” and take into account sectoral bargaining for gig employees.
Sectoral bargaining for unbiased employees can be an modern reform that might present sector-wide flooring on earnings and advantages, whereas retaining IC classification. Some in organized labor have recommended extending the appropriate to discount for all employees –regardless of classification. Earlier than business dismisses this outright, and since this has not been accomplished earlier than within the US, it warrants essential examination by Congress, the GAO, or college labor facilities to discover how card verify guidelines, antitrust legal guidelines, and federal preemptions can be accounted for. In idea, this might empower employees and stop much less scrupulous firms from gaining a aggressive benefit with a race to the underside.
Whereas Aiyer, together with Postmates and Uber, was a proponent of California’s Proposition 22, which legally labeled gig employees as unbiased contractors, he says he doesn’t desire a carbon copy of it to be carried out all through the nation.
“Whereas Prop 22 was a step ahead relating to the argument that tech is making of balancing employee flexibility with extra advantages on high of the 1099 standing, there are two points that have to prescribe the remainder of the trail ahead,” he informed TechCrunch.
The primary is that this sort of work has turn into somewhat common, particularly because the COVID-19 pandemic has led to tens of millions of misplaced jobs all through the nation. Secondly, Aiyer says it’s vital to get enter from employees as firms push related laws both in different elements of the nation, or on the federal stage.
Aiyer pointed to a key distinction in Postmates couriers in Los Angeles versus New York. In Los Angeles, Aiyer mentioned many Postmates couriers are in vehicles whereas in New York, many are on bikes. Prop 22 put forth a brand new flooring for insurance coverage commonplace, however “which may not be the identical kind of protection somebody on a motorcycle desires.”
“Prop 22 established a flooring for California, nevertheless it definitely shouldn’t be the ceiling of broader security internet reforms and what a nationwide coverage ought to appear to be,” he mentioned.
However for some gig employees, they’ve lengthy mentioned they don’t wish to be unbiased contractors — even when that does include some additional advantages. As an alternative, some have mentioned they wish to be workers and be entitled to the complete vary of advantages that W-2 standing supplies.
In the end, Aiyer thinks it’s a false dichotomy to have a binary in our society the place there are employees with advantages and unbiased employees with out.
“What about having each a W-2 full-time worker mannequin and you’ll increase the usual of unbiased work to a brand new peak of advantages and you’ll have each,” Aiyer mentioned. “However to try this in a approach that’s inclusive to employees and labor advocates, it’s good to have a reset of these conversations, which haven’t actually been happening since AB 5.”
Aiyer, whose final day at Uber-owned Postmates was in early January, informed me he hopes for his letter to reinvigorate conversations between the totally different stakeholders within the house. As for him, Aiyer informed me his subsequent skilled transfer will probably be doing public curiosity work.