MINNEAPOLIS — Minneapolis Mayor Jacob Frey has officially vetoed a measure setting new pay minimums for rideshare drivers in the city of Minneapolis.
Frey said he plans to call a special session next week to discuss the measure, ahead of an expected city council vote to override his veto.
The measure passed the city council on Thursday by a 9-4 vote, meeting the nine-vote threshold to potentially override any veto if no supporters change their vote.
Supporters of the measure say it will close a loophole in the city's existing minimum wage policy, allowing drivers for companies like Uber and Lyft to be eligible for $1.40 per mile and $0.51 per minute, equivalent to the city's $15.57 minimum wage.
“Small businesses are required to pay minimum wage before tips, and it’s clear that multi-billion dollar out-of-state tech companies should be too,” Council Member Jason Chavez said in a statement. “No company should be above the law. Relying on low-income riders to subsidize Uber and Lyft paying drivers’ wages is an economic and racial injustice.”
“As a leader on the original $15 minimum wage campaign, I knew that it would take huge amounts of determination and organization by workers to build a movement and beat back these multi-billion dollar corporations. I’m honored to have stood with workers during the Fight for $15 and with drivers this past year as we’ve tirelessly worked to win this ordinance and finally close a loophole that Uber and Lyft have used to exploit drivers.” Council Member Robin Wonsley said in a statement.
Uber and Lyft drivers at Thursday's meeting celebrated, saying this was needed.
"Today's a day where they're going to celebrate the fruits of their work!" Eid Ali, President of the Minnesota Uber and Lyft Driver's Association, said.
However, a spokesperson for the mayor's office said Frey felt the council acted too quickly when a new state study on wages and rideshare compensation was expected to be released in less than a day. That report was released on Friday morning.
“The statewide report is literally going to be released tomorrow," Frey said in a statement Thursday. "It’s irresponsible to pass policy today when we’ll have the data tomorrow.”
"We expect Mayor Frey to veto the rideshare minimum compensation ordinance," Council Member Jamal Osman said in a statement after the measure passed in the council. "He has made it clear he doesn’t believe drivers deserve a minimum wage. We are also confident that Council will continue our track record of standing with workers and will vote to override a veto.”
In a letter to ordinance supporters last month, Frey said he is open to wage increases to driver pay but wanted to see what the statewide wage study revealed.
Gov. Tim Walz created a committee to study rideshare driver wages and protections after he vetoed a statewide minimum pay measure last session.
At a press conference Wednesday, Frey emphasized that he supports more than doubling driver pay, and says a compromise could be lowering the proposal to $1.20 per mile and $0.34 per minute to ensure services continue.
Lyft and Uber have threatened to pull out of the city of Minneapolis if the measure becomes law; the companies made a similar threat during discussions last year.
"We support a minimum earnings standard for drivers, but it must be done in a way that allows the service to sustainably and affordably operate for riders," a Lyft spokesperson said in an email to KARE 11. "For the second time in less than a year, the bill-sponsors have willfully chosen to ignore offers to collaborate, instead choosing to rush through the most extreme figures possible. We implore Mayor Frey to veto this legislation and instead join our efforts to pass a statewide minimum earnings standard that can balance the needs of all. Otherwise, we will no longer be able to operate in the city once the bill takes effect on May 1."
“Uber supports comprehensive statewide legislation that guarantees drivers $35/hr minimum earnings while working and protects their flexibility and independence," an Uber spokesperson said in an emailed statement. "If this ordinance is enacted, we look forward to working with drivers, riders and the legislature to bring rideshare back.”
Ali says they're not afraid of the possibility of Uber and Lyft leaving Minneapolis, saying there will be others to take their place.
"Well, historically, the only place Uber and Lyft said they were leaving was Austin, and they came back. So we don't have any history or any data that's going to give us that confidence that Uber and Lyft are serious about leaving," Ali said. "Again, we do have so many local startups that are interested to jumping in this market, so, we're not saying we're happy about Uber and Lyft leaving this market, but if that is their decision, we're not going to stop them."
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