Presidential candidate Hillary Clinton will vigorously criticize contractor-run companies for preventing middle-class wage growth in a speech to be held today on her economic policies. That’s not good news for Uber, is it?
Clinton is looking to make the growth in middle class incomes a main point of her campaign, displaying her strategy at The New School in Manhattan. The daily U.S. newspaper, Politico, said that Clinton will present the sharing economy as “conspiring against sustainable wage growth” and that “she will argue that policy choices have contributed to the problem, and that she can fix it.” What seems to be argued here is that big job creators are giving only contractor positions that lack benefits, advancement opportunities and job security of full-time positions, therefore not contributing to creating a country with sustainable wage growth.
For example, full-time drivers could have relied on their future income to make investments in owning a house or setting aside a college fund for your children and full benefits might have helped them cover expensive medical condition. Politico added that the popular vacation rentals website airbnb.com may also be targeted as traditional hotels with full time employees lose in the face of people renting out their house.
This comes at the same time when Uber is opposing a class-action lawsuit in the district court of Northern California that would label all its contractors as employees. While technologists don’t pay too much attention to government regulation of fast-moving industries, maybe Clinton will listen to the contractors’ side and what they want and also find what helps fast developing companies like Uber to continue to innovate and provide affordable and convenient services instead of suppressing them.
By Gabriela Florea