British Columbia has become the first province in Canada to provide a minimum wage and other protections for people who work through gig-based apps like Uber, DoorDash, Skip the Dishes and Lyft, according to B.C.’s Ministry of Labour.
Starting Sept. 3, anyone who accepts work through these and other gig-based apps, such as ride-hailing and delivery services, must receive $20.88 an hour from the time they accept an assignment to the time it is completed, the province says.
Under the new rules, this is known as “engaged time.” The pay standards are not applied to time spent waiting between jobs.
The $20.88 figure is 20 per cent higher than B.C.’s minimum wage of $17.40 an hour in order to address the gaps between gigs, the government says. Like the minimum wage, it will be adjusted annually to keep up with inflation.
Proposed legislation in British Columbia aims to ensure gig economy workers, including Uber and DoorDash drivers, make more than minimum wage when they are on a call.
Tips from people receiving the service do not count toward the earnings, and platforms will be required to pay any gaps in earnings that impact workers.
“Too many workers in this industry are putting in long hours and being paid less than the minimum wage,” Janet Routledge, the parliamentary secretary for labour, said in a release. “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 change is being introduced after the province held a series of meetings with gig workers across B.C. to hear about their experiences and concerns — and after several gig workers threatened to strike if improvements weren’t made.
The government says it also consulted with the platforms behind the services, as well as business and labour associations and members of the public.
Following an attack on an Uber driver in Abbotsford, some gig workers in B.C. say they are prepared to strike if the province does not improve labour protections.
The new rules represent “balanced solutions” that will keep app-based services in B.C. while providing better protections for workers, the province says.
The B.C. government estimates there are about 11,000 ride-hailing drivers and 35,000 delivery workers in the province.
According to a March report from Statistics Canada, approximately 3.6 per cent of workers between the ages of 15 and 69 took on gig work as their main job.
Across Canada, an average of 871,000 people aged 15 to 69 did gig work as part of their main job in the final three months of 2022, according to Statistics Canada. An additional 1.5 million people completed gig work at some point during the previous 12 months.
Worker’s compensation, job transparency also coming
Minimum pay is one of several new measures coming into effect in B.C. Other rules being introduced include:
- All ride-hailing service and delivery workers will be covered through WorkSafeBC.
- Companies will be required to see the location and estimated pay for a job before it is accepted.
- If workers are suspended or deactivated from an app, companies must tell them why.
- Companies must make sure 100 per cent of the tips paid by customers go directly to the worker responsible for the service.
- Establish a 35- to 45-cent minimum per-kilometre vehicle allowance to help workers cover expenses.
The announcement was welcomed by UFCW Canada, a private sector union representing Uber drivers across the country.
In a release, the union said it wants every province in Canada to introduce legislation aimed at ensuring rights and protection for people who work using gig-based apps.