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#Uber wins bid to halt NYC pay raise for ride-sharing drivers

“Uber wins bid to halt NYC pay raise for ride-sharing drivers”

A Manhattan judge has granted Uber’s bid to temporarily block a pay hike for ride-share drivers from going into effect next week.

Uber filed suit on Friday against the city Taxi and Limousine Commission seeking to halt a new rule that would raise driver pay from 2019 rates, by 7.42% per minute and 23.93% per mile.

The company claimed the increase — set to take effect Dec. 19 — would force it to shell out an additional $21 million to $23 million per month and raise rider fares by 10% amid the holiday season.

On Tuesday, Manhattan Supreme Court Justice Arthur Engoron granted an order blocking the raise from taking effect – at least until arguments can be heard in the case on Jan. 31.

The TLC said that it plans to appeal the decision.

“We are disappointed for the tens of thousands of drivers who are once again being made to bear the rising costs of inflation all on their own, with no help from the multibillion-dollar company they work under,” TLC Commissioner David Do said in a statement. “We will aggressively defend this important standard for our drivers.”

Taxi cabs and ride share cars
A Manhattan judge granted a bid to temporarily halt a pay hike for ride share drivers from going into effect on Dec. 19.
Corbis via Getty Images

Uber spokesperson Freddi Goldstein said: “Drivers do critical work and deserve to be paid fairly, but rates should be calculated in a way that is transparent, consistent and predictable.”

In its suit, Uber argued that the pay hike is “arbitrary and capricious” because the TLC changed the way it calculated for inflation and refused to provide the documentation that it based the measure on.

The TLC began boosting driver minimum wages in February 2019 and twice raised pay to match inflation – in February 2020 and in March 2020.

People protest outside city hall about increase driver wages.
The city TLC said it would appeal the ruling.
Stephen Yang

The Independent Drivers Guild said Engoron’s ruling leaves 80,000 Uber drivers in the lurch as the holidays approach.

“This is a nasty stunt for Uber to pull on its drivers— especially right before the holidays,” IDG President Brendan Sexton said in a statement. “Even this would make Scrooge blush.”

“While Uber has been recording record profits on its rideshare business, the drivers who make the service work have been stuck shouldering soaring expenses on their own,” Sexton said.

Lyft driver Alpha Berry – who previously drove a taxi for 20 years – said it is “awful” that the court sided with Uber after the work drivers did to fight for the raise.

“It just seems like nobody is listening to us. We are struggling out there. Making a living on the road is not easy,” said Berry, a 50-year-old Bronx resident.

He said Uber only cares about making money.

“They charge more to the passengers and they give the driver less money,” Berry said. “They’re not cutting their rates. They’re making more money and drivers continue to suffer.”

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