Minneapolis, Minnesota – Minneapolis Mayor Jacob Frey vetoed a pay raise for rideshare drivers approved by the City Council, leading to a potential showdown with major rideshare companies like Uber and Lyft. The companies have threatened to leave the city and possibly the state, citing the pay hike as a reason for their impending departure on May 1.
Frey swiftly called for a special council meeting to override his veto and prepare for the consequences of the rideshare companies’ departure. He argued that waiting for a state study or compromising on the pay hike could prevent the companies from leaving.
Despite Frey’s veto, the council has the option to override it with a 9-4 vote. The council members who support the pay raise plan are confident in their ability to override the veto, but Frey remains optimistic that at least one member may change their vote.
A new study from the Minnesota Department of Labor and Industry supports Frey’s stance, suggesting that a different pay rate could benefit drivers by ensuring they earn the equivalent of the city’s minimum wage. The proposed plan includes various measures such as a $5 minimum payment for every ride, annual increases for drivers, and restrictions on wage deductions.
The ongoing debate highlights the challenges faced by rideshare drivers in Minneapolis and the potential impact on both drivers and the rideshare companies. The outcome of the upcoming council vote will determine the fate of the pay hike and the future of ridesharing services in the city.