Uber, Lyft in Minneapolis: Veto overridden by City Council

Uber, Lyft in Mpls: City council overrides veto

The Minneapolis City Council has overridden Mayor Jacob Frey's veto on the ordinance that raises ride-hail drivers pay to be equivalent to Minneapolis's minimum wage. FOX 9's Karen Scullin has more.

MINNEAPOLIS (FOX 9) - The Minneapolis City Council has overridden Mayor Jacob Frey's veto on the ordinance to raise the minimum wage for ride-hail drivers. The ordinance will require Transportation Network Companies, including Uber and Lyft, to give drivers a pay bump to be equal to Minneapolis's minimum wage.

The ordinance will require ride-hailing companies like Uber and Lyft to pay drivers rates that are equivalent to Minneapolis's $15.57 minimum wage. These companies will have to pay drivers $1.40 per mile and $0.51 per minute for all portions of a ride within Minneapolis.

Minneapolis Mayor Frey on Uber/Lyft proposal [RAW]

Minneapolis Mayor Jacob Frey spoke Wednesday about the City Council's Uber/Lyft ordinance proposal, which has the rideshare companies threatening to pull out of the city. The Minneapolis City Council votes on Thursday on the ordinance.

The ordinance goes into effect May 1, which is the same date Uber and Lyft announced they would cease operations in Minneapolis due to the ordinance. Uber will not only cease operations in Minneapolis, but the whole metro area, including the Minneapolis-St. Paul Airport.

Uber and Lyft leaving Minneapolis a bluff?

On May 1, Uber and Lyft are threatening to abandon Minneapolis after the city passed an ordinance to give minimum wage to drivers. But is it a bluff?

The city council voted 10-3 to override Mayor Frey's veto. Council members who voted to override the veto were President Elliott Payne, Vice President Aisha Chughtai, Robin Wonsley, Jeremiah Ellison, Jamal Osman, Katie Cashman, Andrea Jenkins, Jason Chavez, Emily Koski, and Aurin Chowdhury. While council members who voted against the override were Michael Rainville, LaTrisha Vetaw and Linea Palmisano.

"This is a David and Goliath story. Regular working-class people took on two corporate giants and their political allies, and won. Uber and Lyft want us to believe they are untouchable, and the status quo of exploiting workers cannot be fixed. Today’s vote demonstrated that all of this was just a question of political will. I’m so proud to have worked with these drivers every step of the way to make today’s victory a reality," said Wonsley, the lead author on the policy.

The city council cites data from the Minnesota Department of Labor and Industry report that states the median earnings for drivers in the metro area to be $13.63 an hour, including 25% of those drivers earning under $10.54 an hour.

The city council initially passed the ordinance on March 7 with a 9-4, which Frey vetoed shortly after. Council members considered delaying the vote after learning the state report on the matter was set to be released Friday, but voted against the delay, which Frey did not support.

Last year, a similar rideshare ordinance was passed with seven votes versus five "nays" and one absent. Frey vetoed the bill and an effort to override the veto came up short. The city council needed at least nine votes to override the veto.

"Rideshare companies have been growing at the expense of drivers for a decade and it’s time to start regulating them," said Council President Payne. "Thank you to the drivers, city staff, and my colleagues for your hard work on this ordinance. I look forward to this Council continuing to pass worker protections this term so that all workers are able to live fulfilling lives in our city."

Council member Koski initially voted against the veto last week, stating she felt it necessary to review the state's report on the matter. After reviewing the material, she decided to vote for the override, saying the report showed that ride-hail drivers were making under minimum wage.

To read the full report from the Minnesota Department of Labor and Industry, click here.