What is the story?

British Columbia (B.C.) has taken a pioneering step in Canada by establishing a minimum wage and other protections for gig economy workers who use apps like Uber, DoorDash, Skip the Dishes, and Lyft. Starting September 3, gig workers in B.C. must receive a minimum wage of $20.88 per hour for the time they are actively engaged in a job, referred to as "engaged time," from accepting to completing an assignment. This rate is 20% higher than B.C.'s current minimum wage of $17.40 per hour to account for the time spent between gigs. The wage will be adjusted annually to match inflation rates.

The new rules ensure that tips received do not count towards this minimum wage, and platforms must cover any gaps in earnings. Janet Routledge, the parliamentary secretary for labour, stated, "Too many workers in this industry are putting in long hours and being paid less than the minimum wage. At the end of a shift, after paying their vehicle expenses, these workers are barely ahead of where they started. The new protections are going to change that."

The legislation follows consultations with gig workers, service platforms, business and labour associations, and the public, after gig workers threatened to strike if their conditions did not improve. In addition to the minimum wage, the new measures include:

Coverage for all ride-hailing and delivery workers under WorkSafeBC.
Transparency of job location and estimated pay before acceptance.
Required explanations for worker suspensions or deactivations from apps.
100% of customer tips going directly to the worker.
A vehicle allowance of 35 to 45 cents per kilometer to help cover expenses.

The B.C. government estimates that there are approximately 11,000 ride-hailing drivers and 35,000 delivery workers in the province. According to Statistics Canada, about 3.6% of workers aged 15 to 69 took on gig work as their main job, with 871,000 people doing gig work as part of their main job in the last quarter of 2022.

Why is this important?

The introduction of these measures is a significant move toward ensuring fair labor practices and financial stability for gig economy workers, who often face uncertain and precarious working conditions. By setting a precedent, B.C. is addressing the gap between earnings and the cost of living for gig workers. This move could inspire other provinces to adopt similar legislation, thereby potentially transforming the gig economy landscape across Canada. Providing protections like minimum wage, job transparency, and compensation coverage not only uplifts the workers' standards of living but also acknowledges their crucial role in the modern economy.

Read the full story here: https://ici.radio-canada.ca/rci/en/news/2080522/gig-workers-in-b-c-to-be-paid-minimum-of-20-88-an-hour

Gig workers in B.C. to be paid minimum of $20.88 an hour