Why We're All Becoming Independent Contractors

[Common]

GM is worth around $60 billion, and has over 200,000 employees. Its front-line workers earn from $19 to $28.50 an hour, with benefits.
Uber is estimated to be worth some $40 billion, and has 850 employees. Uber also has over 163,000 drivers (as of December -- the number is expected to double by June), who average $17 an hour in Los Angeles and Washington, D.C., and $23 an hour in San Francisco and New York.
But Uber doesn't count these drivers as employees. Uber says they're "independent contractors."
What difference does it make?
For one thing, GM workers don't have to pay for the machines they use. But Uber drivers pay for their cars -- not just buying them but also their maintenance, insurance, gas, oil changes, tires, and cleaning. Subtract these costs and Uber drivers' hourly pay drops considerably.
For another, GM's employees get all the nation's labor protections.

These include Social Security, a 40-hour workweek with time-and-a-half for overtime, worker health and safety, worker's compensation if injured on the job, family and medical leave, minimum wage, pension protection, unemployment insurance, protection against racial or gender discrimination, and the right to bargain collectively.
Not to forget Obamacare's mandate of employer-provided health care.
Uber workers don't get any of these things. They're outside the labor laws.
Uber workers aren't alone. There are millions like just them, also outside the labor laws -- and their ranks are growing. Most aren't even part of the new Uberized "sharing" economy.
They're franchisees, consultants, and free lancers.
They're also construction workers, restaurant workers, truck drivers, office technicians, even workers in hair salons.

What they all have in common is they're not considered "employees" of the companies they work for. They're "independent contractors" -- which puts all of them outside the labor laws, too.

http://www.huffingtonpost.com/robert...b_6731760.html

[Peter1469]

Yes. Government taxes and regulations make it smart for business to not have employees and instead hire contractors.

And some people think the government can tax and regulate with impunity. Oops.

[Common]

Its not about taxs peter, its about paying the least to the people that make you the most

[Peter1469]

Its not about taxs peter, its about paying the least to the people that make you the most

Not from my experience.

Many independent contractors make more- except no benefits. They take the extra pay to cover their own insurance, etc.

Again, their would be no such creature if the government didn't have crazy tax laws and regulations.

[Cigar]

Its not about taxs peter, its about paying the least to the people that make you the most

I remember when I was going to college, other High School graduates were getting specalized training in Electrical, Contruction, Iron work, Plumbing and various other high skilled and high paying traids. Plus most of them where union, where they were asured of getting good pay and benifits.

Now a lot of organizations want to pay the least for their employees, but still want quality work. I say think about it, does all the anti-union and anti-minimum wage suppoerters still want to buy quality US products from some one who gets paid crap?

I say you get what you pay for, and not a penny more, whether you like it or not.

[PolWatch]

My husband is a retired union carpenter who worked on heavy industrial jobs his entire career. Many jobs had both union and non-union contractors on site. I can't count how much $$$ he made when the non-union companies were run off the job and the union companies had to re-do their work. In a right to work state you see some interesting situations.

[gamewell45]

GM is worth around $60 billion, and has over 200,000 employees. Its front-line workers earn from $19 to $28.50 an hour, with benefits.
Uber is estimated to be worth some $40 billion, and has 850 employees. Uber also has over 163,000 drivers (as of December -- the number is expected to double by June), who average $17 an hour in Los Angeles and Washington, D.C., and $23 an hour in San Francisco and New York.
But Uber doesn't count these drivers as employees. Uber says they're "independent contractors."
What difference does it make?
For one thing, GM workers don't have to pay for the machines they use. But Uber drivers pay for their cars -- not just buying them but also their maintenance, insurance, gas, oil changes, tires, and cleaning. Subtract these costs and Uber drivers' hourly pay drops considerably.
For another, GM's employees get all the nation's labor protections.

These include Social Security, a 40-hour workweek with time-and-a-half for overtime, worker health and safety, worker's compensation if injured on the job, family and medical leave, minimum wage, pension protection, unemployment insurance, protection against racial or gender discrimination, and the right to bargain collectively.
Not to forget Obamacare's mandate of employer-provided health care.
Uber workers don't get any of these things. They're outside the labor laws.
Uber workers aren't alone. There are millions like just them, also outside the labor laws -- and their ranks are growing. Most aren't even part of the new Uberized "sharing" economy.
They're franchisees, consultants, and free lancers.
They're also construction workers, restaurant workers, truck drivers, office technicians, even workers in hair salons.

What they all have in common is they're not considered "employees" of the companies they work for. They're "independent contractors" -- which puts all of them outside the labor laws, too.

http://www.huffingtonpost.com/robert...b_6731760.html

The Uber employees (not just drivers) have a legal right to organize under the banner of a union (or form their own union if they so choose) and can negotiate for all of the same conditions of employment (and even more) the GM unionized employees enjoy.

Basically what Uber has is a disposable work force, which is what many companies either have or want. A small core of highly paid executives and nothing more. At some point Americans will wake up and realize that they have been hoodwinked all of these years and changes will occur bringing collective bargaining back into the process. Since the rule of thumb in the private sector is a minimum of 5 workers to organize, almost any group of employees are eligible to unionize. The people have more power then they realize in the workplace; if they ever truly exercised that power, they'd improve their working conditions immeasurably.

[gamewell45]

Yes. Government taxes and regulations make it smart for business to not have employees and instead hire contractors.

And some people think the government can tax and regulate with impunity. Oops.

Peter, the government can only tax and regulate with impunity as long as the American people agree with it; otherwise, that can all change with a complete change of power at the Federal, State and local level. All it takes is the desire and 4-6 years time and enough determined populace.

[gamewell45]

My husband is a retired union carpenter who worked on heavy industrial jobs his entire career. Many jobs had both union and non-union contractors on site. I can't count how much $$$ he made when the non-union companies were run off the job and the union companies had to re-do their work. In a right to work state you see some interesting situations.

I'm proud to say that I've only worked union since my days in college while working for the supermarket and through my career as full time white collar job as an engineer. I never had to worry about benefits (still don't worry about it), my pay was almost 4x what a non-union engineer would make, I had job security, a real pension in addition to a 401.k plan (which the company put in 4% of my base pay regardless whether I put in anything or not), a grievance procedure to resolve disputes in the workplace, training on new technology (jobs may become obsolete, but people don't) and discharge for just cause only (and the company would have to prove just cause in front of an arbitrator).

Those who choose the non-union path for employment, It's probably your choice and I wish you all the best; those who are union, I say good choice. You'll live better then most of your non-union counterparts.