Even at $20.88 an hour, B.C. gig workers say they will still be underpaid | CBC News

British Columbia’s new protections for gig workers, including a minimum wage for people who work through gig-based apps, are a welcome step but more needs to be done, workers and labour leaders say. 

Starting Sept. 3, workers for ride-hailing or delivery services like Uber, Skip the Dishes, Lyft and DoorDash will receive $20.88 an hour from the time they accept an assignment until the time it is complete. But this minimum wage won’t apply to the waiting periods between this so-called “engaged time,” the province says. 

This gap sticks out as the biggest concern for workers and union leaders who spoke to CBC News. They argued that this means drivers and couriers would still be working more hours than they are being compensated for. 

“We are not on our couch, we are not doing the gym, we are not watching the movies,” Guramar Sidhu, an Uber driver, said in an interview with The Early Edition. “We are sitting in our vehicles waiting for the next ride.” 

This model is also a problem because the competition for assignments is intense, according to Andrew Lisovskyi, a delivery worker. He says there are too many couriers and not enough orders. 

“It’s maybe a good idea but no help,” Lisovskyi said. 

In addition, the law includes coverage through the province’s worker’s compensation agency and more transparency from the companies around gig worker’s suspension and deactivation.

The law also includes a requirement that 100 per cent of the tips go directly to the worker responsible for the service. There is also a 35-cent to 45-cent minimum per-kilometre vehicle allowance to help workers cover expenses.

For Juan Villagran, these rules are “good news” because couriers like him don’t receive coverage from the companies and are increasingly relying on customers’ tips. 

“This is the minimum thing that we need as labourers to continue working,” he said. 

More is needed: union leaders

B.C. is the first province in Canada to implement these rules. 

The change follows a series of meetings between the government and gig workers across B.C. to hear about their experiences and concerns — and after several gig workers threatened to strike if improvements weren’t made.

There are about 11,000 ride-hailing drivers and 35,000 delivery workers in the province, according to the B.C. government’s estimate.

The province says it also consulted with the platforms behind the services, as well as business and labour associations and members of the public.

Sussanne Skidmore, president of the B.C. Federation of Labour, says her organization has been advocating on this issue for years and she is glad to see changes being made. 

WATCH | B.C. premier says companies can ‘suck it up’ over new rules: 

Gig workers in B.C. to be paid minimum of $20.88 an hour

Uber says some of the regulation changes for app-based ride-share and delivery workers in B.C. will drive up costs. However, the company says it supports some of the rules coming in September, including a new minimum wage and health and safety coverage for workers.

But she says the law didn’t meet all of the group’s demands, such as full coverage under the Employment Standards Act, overtime, paid sick days and statutory holidays. She also expressed concern in a press release about workers being paid minimum wage for only the engaged time. 

“They want to be treated like all the other workers in this province and not be seen as a separate grouping of workers, and so we are unhappy that we didn’t get all the things we’ve been pushing for,” Skidmore said.

Jennifer Scott, president of the Toronto-based group Gig Workers United, similarly questioned the engaged time model.

“If a government brings in regulation that allows us to pay workers minimum wage only for engaged time, you’re effectively changing what minimum wage means,” she said.

Scott added that while she appreciates the health and safety protections that are coming with the new regulations, gig workers still don’t have many other safeguards found in conventional work.

“Without the correct classification as a worker, workers don’t have those paths to resolve the issues and the problems that they experience in the workplace with their employer,” she said. “And that’s where our concern is.”

In a statement to CBC News, Labour Minister Harry Bains noted that the rate of $20.88 is 20 per cent higher than B.C.’s general minimum wage of $17.40. This premium, he says, exists “in recognition of workers’ unengaged time.”

“We are listening to the workers, on the ground, who do this work,” Bains said. “We will monitor the sector to see if adjustments are needed in the future.”

Cost for consumers will rise: companies

Ian Tostenson, president of the B.C. Restaurant and Foodservices Association, said in an interview with BC Today that while he’s pleased gig workers are getting higher pay and more protections, he’s concerned that an increase in costs to consumers could lead to a decrease in business for restaurants. 

Tostenson also wants to see an economic analysis from the government about the potential impact of the new law.

App-based companies like Uber and Skip the Dishes have already warned that the province’s new law will drive up costs for consumers amid an affordability crisis. 

B.C.’s Ministry of Labour said in a statement that the new law is about protecting workers. Earlier in the day, Premier David Eby said that the app-based companies “can suck it up.” 

Eby said he doesn’t want to see someone going further into debt because they have vehicle-related expenses that aren’t supported by their employer, “which are these app-based companies that have billions of dollars in revenue.”

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Takeout deliveries likely to cost you more, restaurant industry warns

Ian Tostenson, the CEO of the B.C. Restaurant and Foodservices Association, tells BC Today host Michelle Eliot that an increased minimum wage for gig workers will likely lead to consumers paying higher delivery fees. The program also heard from callers, who talked about whether they’d be willing to pay higher fees.

Uber, a publicly traded company headquartered in California, reported a net income of more than $1 billion US in 2023, with CEO Dara Khosrowshahi’s earnings reported at a $1 million base annual pay, up to $24 million after factoring in stock options and other compensation, following continued growth in 2022 and 2023.

Skip the Dishes is headquartered in Winnipeg and is a subsidiary of the Dutch multinational Just Eat Takeaway, the largest food delivery company in Europe, valued at more than $2 billion. 

According to Reuters, the company is expected to post profits in 2024 after a break-even year in 2023 and has recently pulled out of several international markets following a slump in demand for food delivery services following a COVID-19 pandemic lockdown boom.

Eby added that British Columbians will use the service that is most cost-competitive. 

“And that may be any of those companies, or it may be some entirely different company that starts up in this province.”