Uber CEO And Rockefeller Foundation Advocate Stronger Worker Safety Nets

In a write-up in Fortune magazine, Dara Khosrowshahi, CEO of Uber Inc. UBER and Rajiv J. Shah, president of the Rockefeller Foundation, make a case for a broader safety-net for the American worker.

The Economy Has Fundamentally Changed

Both Khosrowshahi and Shah claim that the economy has fundamentally changed, with unemployment at its highest level since the Great Depression. They say, “The sudden shift in economic fortunes has awoken most Americans to the downsides of the U.S. labor model.” Additionally, they point to persisting problems such as “systemic racist systems,” which must be addressed.

The Glaring Lack Of Worker Safety-Nets In America

Wages have not kept pace with productivity, according to Khosrowshahi and Shah. Before the current pandemic crisis, nearly 80% of families lived from paycheck to paycheck, with no ability to weather an emergency. The duo pointed out that 40% of Americans had less than $400 in savings. One in four U.S. workers has filed for unemployment in the last ten weeks, and half the workforce has lost either a job or some income. Compounding the problem is the loss of health care.

Independent Workers Not On Sturdy Ground

The authors advocate giving American workers the ability to sustain themselves through difficult times in order to make the economy resilient. They point out that the current labor framework is inadequate. They write that Uber connected “millions of people to quick access to work,” but the safety nets, as they existed before the pandemic, have not been “flexible” or “sturdy.” Both call for wider worker protections. Khosrowshahi and Shah appreciate that the CARES act makes independent workers eligible to receive unemployment assistance.

Independence Or Protection: A False Choice

According to Khosrowshahi and Shah, the choice between independence and protection is a false one. A survey conducted among 1,200 voters across the country by the Rockefeller Foundation, indicates that 76% of Americans do not want to return to the safety-net system as it existed before the pandemic. Three in four want more pragmatic solutions to unemployment-assistance and the portability of benefits within jobs. They also want reforms so that skills can be transported across states. “Such regulatory reform would also allow ride-share workers, including Uber drivers, to more easily find work wherever they go across state lines,” write the Uber CEO and the Rockefeller President.

Raise the Standard of “Independent Work.”

Khosrowshahi and Shah acknowledge that there is disagreement on what should be done to improve the condition of the working populace. “Uber has opposed efforts by legislators to require workers to choose between employment with some benefits but limited flexibility and independent work with more freedom but without basic benefits,” they write. Instead, they advocate raising “the standards for independent work, so workers can have the best of both worlds,” and call for provisions to be made, so that workers receive benefits and protections such as sick time, days-off, and the ability to retire.