Discussion
This quote comes from Tony West, the Uber executive who has led the company's efforts to formalize its worker misclassification program, notably California's Prop 22, a $225m statewide campaign that overturned the state's landmark gig work standards. West is also Kamala Harris's brother-in-law, and he served as her campaign's corporate liaison, senior strategist and economic policy advisor.
6/
On its face, West's statement sounds reasonable, and most of us have heard a version of it, possibly even from an Uber driver. But what Uber calls "flexibility" is really a way for the company to offload its operational risks onto its drivers.
7/
Anyone who runs a business has to manage a key operational risk: staffing levels. A restaurateur who doesn't schedule enough cooks, bussers and servers might have to turn away business at the door if there's a rush. But if the restaurateur schedules *too many* people for a shift, they'll end up paying for those workers to stand around scrolling Tiktok.
8/
In America, Congress and state legislatures have created a system that allows restaurateurs to transfer this risk onto their employees: the "tipped minimum wage." Federally, the minimum wage for tipped employees is only *$2.13/hour*, with the caveat that employees are obliged to "top up" their workers' pay if the tips from their shift don't add up to $7.25/hour. So if you work five hours and don't wait on a single table, your boss has to pay you $36.25 ($7.25/hour * 5 hours).
9/
But if you have a busy shift and you make $40 in tips, your boss only has to pay you $10.65 ($2.13 * 5 - the tipped minimum).
This is a transfer of risk from bosses to workers. The boss can schedule extra servers and offload most of their wages to diners who come through the doors. If your boss overestimates the amount of business, much of the cost of that miscalculation comes out of your paycheck.
10/
This is quite a sweet deal for bosses. After all, servers have virtually no control over the amount of business a restaurant attracts. It's the boss, not the server, who decides where the restaurant will be, which hours it will keep, which food it will serve, how much the food costs, what advertisements to run, and where and when to run them. The boss controls the decor, staff attire and the music. They make the decisions, and workers pay the price if they decide poorly.
11/
@pluralistic this is also one reason why the supposed efficiency of capitalism often fails . . . the people with the most information about the business are often the workers, and often have the least input on decisions.
Install bonfire.cafe
Get the full app experience
