Earning a living wage is not easy, especially compared to the 1950s. Back then, in what would be termed the baby boom era, a family could live well on one income. Buying a home, having at least one car, and packing away a hefty savings in government bonds on that one income was more than possible.
So, why today does it take two full-time incomes to scrape by? That is a big question for another time, but it does have roots in significant decreases in the purchasing power of the United States dollar.
Debt System
America runs on a debt-based system. This system means that the average person carries some form of debt, whether a mortgage, car, education loan or massive credit card debt. Making ends meet today usually means that most people have serious credit card debt.
For gig workers struggling in today’s economic downturn, making a living wage is a pipe dream. Gig workers in New York, desperate to be paid the value of their time, scored a significant victory this week.
Living Wage
A living wage is an income high enough to maintain a normal standard of living. At a measly $7.09 an hour, drivers for companies like Uber, DoorDash, Grubhub drivers, and dashers weren’t making a living wage, especially in New York.
Fast forward to this week, and those workers were given a considerable wage boost by acting state Supreme Court Justice Nicholas Moyne, who ruled in favor of the 65,000 workers affected by the wage mandate. The companies who sued the city in July, when the increase was to go into effect, spoke out against the Judge’s ruling.
Companies Disagree
Josh Gold, a spokesperson for Uber, said this about the ruling, “The city continues to lie to workers and the public. This law will put thousands of New Yorkers out of work and force the remaining couriers to compete against each other to deliver orders faster.”
A spokesperson for delivery service Grubhub relayed company thoughts on the ruling. “We will now be forced to make changes to our platform that will have adverse consequences for delivery partners, consumers, and independent businesses. We remain confident in our legal position and firmly believe that the city’s rule, while well-intentioned, is the result of a flawed rulemaking process that was not applied consistently to the food delivery industry.”
DoorDash did not offer a statement on the recent ruling or NBC’s request for comment. In June, however, they did release a statement saying they believed the city’s Department of Consumer and Worker Protection to raise the minimum wage “deeply misguided,” arguing that it would result in fewer opportunities for its delivery workers, price more customers out of orders and affect jobs at local restaurants. The decision “ignores the unintended consequences it will cause and sadly will undermine the delivery workers it seeks to support.”
Minimum Increase Through 2025
With the confirmed ruling in favor of the delivery service workers, their base wage will jump to $17.96 per hour and, by 2025, must increase to $19.96 per hour. And while it still might not be considered a livable wage for New York City, when combined with customer tips, workers will at least be better positioned to afford essentials like food, clothing, and shelter.
Source:(NBC), (DoorDash).