The good news is that Mayo workers are soldiering on without him. From
The Star Tribune:
Mayo Clinic is one of the world’s top hospitals, but hundreds of Rochester workers say the medical system isn’t treating its workers like they’re world-class. About 1,600 unionized clinical technicians, personal care attendants, janitors and others are seeking at least $20-per-hour wages, in line with other hospitals around Minnesota. Rochester nurses are looking into unionizing, which would create a union with more than 6,500 members in Minnesota’s third-largest city.
Meanwhile, thousands more workers are set to come to Rochester as Mayo builds its
$5 billion expansion downtown.
Aside from better wages, the chief concern of nurses at Mayo facilities is inadequate staffing — the very problem that Walz caved to Mayo on:
Karrie Ellingson, a personal care attendant and a member of the SEIU bargaining team at St. Marys, said her department needs 28 attendants to serve about 150 patients on average each day.
“We consistently have been working 30 percent short every day, not including PCAs who may call in ill,” she said.
Ashley Rohwer, a certified surgical technologist at Mayo for almost two decades, said in her department at St. Marys, union and nonunion workers put in a combined average of 30 hours of overtime each day.
“Most employees if they’re [scheduled] at an eight-hour shift on a regular basis, most of them are working 12-hour shifts,” she said.
Mayo is now threatening its nurses with more limited work flexibility and “workforce issues” should they unionize.
Mayo, which in 2017
decided to prioritize the care of privately insured patients over those on Medicare and Medicaid, also killed efforts to create a Health Care Affordability Board in Minnesota last year. The committee would have monitored health care market trends and provided recommendations and oversight. Mayo didn’t just demand to be exempted from this bill but that it be axed altogether, writing:
This bill is extremely problematic and poses a huge threat to the well-being of Minnesota’s health care system as drafted. It must be removed from the HHS omnibus bill and consideration for Mayo to move forward with the previously stated investment.
Once again, Mayo got what it wanted.
Now to Uber and Lyft. Details of the failed worker-friendly bill from the
Minnesota Reformer:
The bill required transportation network companies, including Uber and Lyft, to pay drivers a $5 minimum fee plus $1.45 per mile and 34 cents per minute in the seven-county Twin Cities metropolitan area. Drivers in greater Minnesota would have been entitled to $1.25 per mile and 34 cents per minute. The minimum rates would have increased with inflation.
Drivers would also have been entitled to 80% of cancellation fees if they already departed to pick up a rider as well as $1.25 per mile and 10 cents per minute if the companies charge customers for a “long pickup.”
Drivers were ecstatic at the prospects of better pay and protections:
But elected officials lacked the courage to stand behind workers when Uber went scorched earth, and in
statements to news outlets across the state said the following:
If the bill is signed into law, beginning August 1, Uber will stop operating our ride service outside of Minneapolis-St. Paul metro area. In the metro area, we will only offer premium products to match the premium prices required by the bill.
In the end, Minnesota Gov. Tim Walz vetoed the bill. A watered down version passed this year, however, which raises pay by $1.28 per mile and $0.31 per minute. Eid Ali, president of the Minnesota Uber/Lyft Drivers Association, said the law is progress, but
still a letdown, especially in light of Walz vetoing a better version last year. “Letdown” is putting it kindly. What this year’s bill really did was strengthen Uber and Lyft’s duopoly in the state of Minnesota. From the
Minnesota Reformer:
…the new law includes a series of anti-competitive mechanisms that will disadvantage any new competitor against the incumbents.
The application fees for ridehail companies are the biggest unaddressed issue that cements an anti-competitive market in place. Any Uber competitor entering the market first has to hand over nearly $100,000 in annual licensing fees to Minneapolis, St. Paul, and the Metropolitan Airports Commission.
The Minnesota bill also removed cities’ ability to set wages, enforce them, and to collect data about ridehail operations in their jurisdiction. More:
Lastly, the bill didn’t advance Minneapolis’ ordinance language requiring ridehail companies to pay
80% of special event or surge pricing, and drivers know very well that “platform fees” and “external fees” eat deeply into their existing take rate. Some drivers have publicly posted earnings of
$13 on a $55 Lyft ride.As only
28% of riders ever tip, and gross Uber wages are overall down 17% since 2022, it would be no surprise if drivers saw even less earnings after the implementation of this bill. It’s odd that this element of Minneapolis’ language didn’t make the final bill, but then again, it’s odd that most elements of this bill benefit Uber and Lyft at the cost of drivers, riders and competitors.
So, to summarize: the Legislature’s ridehail bill is anti-competitive. It increases the costs for new competitors and for riders, and raises the barriers of entry for competitors, while not readjusting the regulatory fee to compete against Uber and Lyft. It removes the ability for drivers to influence their city councils to secure higher wages again. It introduces potentially hundreds of thousands of dollars of undefined and extortive costs to be compliant with nameless driver’s advocacy organizations, while disallowing those organizations to once again coordinate with competitors to provide an alternative for Uber and Lyft.
Walz, obviously, touts the bill as a major win for workers, but a closer look at the rideshare legislation and his servitude to big healthcare money show that “America’s dad” isn’t quite the friend of the common man he’s being made out to be.
Notes
[1] As the Minnesota Reformer pointed out at the time, what possibly concerned the bigwigs at Mayo the most is that nursing staffing standards could have slammed the brakes on its
emerging automation efforts, including an initiative with Google Health. Mayo