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As Lyft prepares to list its shares on the NASDAQ, the transportation company is facing an ongoing dispute over driver salaries in New York. Today, a judge denied Lyft injunction application blocking the recent decision setting a minimum wage for drivers. Nevertheless, the judge said she would think and send a written decision within the next 30 days. This comes shortly after several drivers have protested against Lyft's lawsuit against New York City earlier this morning.
"We are pleased that the judge has rejected Lyft's motion to block wage protection rules for the time being and we hope that she will abide by the city's rules in her written decision," said Tina Raveneau, member of the Independent Drivers Guild and driver of Lyft, in a statement. "Eighty thousand New Yorkers serve as professional pilots for applications like Lyft and we deserve the protection and dignity of a viable minimum wage. It's like a fist in the gut for us, the drivers who helped build this business, that Lyft went to court to block wage increases as they headed for an IPO worth $ 23 billion. We are finally doing more than we had for years thanks to the new rules on wages, but Lyft wants to bring it back to what it was before, wages of misery. "
Lyft filed a lawsuit earlier this year, arguing that the new rules give Uber an edge, reduce driver income and make traffic jams worse. At the time, Lyft had stated that his complaint "was not about the law pbaded by New York City Council, but rather the complex formula of implementing the TLC." Lyft is a supporter of a weekly pay standard, but argues that the TLC approach does not take into account items such as drivers who use multiple apps and fluctuating demand.
"We support New York City Council's minimum compensation goal, but we oppose the TLC's specific rules, as they hurt drivers' earnings opportunities and provide benefits to some companies compared to other companies." Others, "said Lyft spokesman Campbell Matthews in a statement. "We appreciated the opportunity to plead our case in court today and we look forward to the judge's upcoming decision."
The lawsuit comes after the New York Taxi and Limousine Commission approved new rules in December to provide a minimum hourly wage of $ 17.22 (after fees) for drivers working for companies such as Uber. Lyft, Via and Juno. The two-year minimum wage campaign was led by The Independent Drivers Guild, a trade union organization defending drivers. The rules require companies to pay drivers on a formula based on mileage, duration and usage rate (the average percentage of time drivers have in their cars),
Lyft recently stated that it is committed to increasing driver incomes and supports the New York board's minimum earnings target. In a recent article on his blog, Lyft started a lawsuit, "to correct misapplication of the law by the New York Taxi and Limousine Commission."
These rules came into force legally in February. Since then, Lyft says that the impact on the earnings of drivers has been negative. According to Lyft, the cost for pbadengers increased by 24%, resulting in a 26% drop in trips and a 15% decrease in driver earnings. Lyft then had to take "steps to stabilize the market using mainly the discounts offered to pbadengers. We will not do this forever, but we knew it was important for the community of drivers and Lyft during the course of the pursuit. "
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