"Minimum Wage for Delivery Workers Set at 23,000 Won"... Backlash Grows Over New York City Decision

Sharp Rise from $7 to $18
DoorDash and UberEats Considering Lawsuits

Although it was announced that minimum wage will be applied to food delivery app workers in New York City starting next month, delivery platform companies have opposed the move.

According to CNN on the 11th (local time), New York City reported that starting April 12, minimum wage of $17.96 per hour (about 23,000 KRW) will be applied to delivery app workers. The plan is to raise it to around $20 per hour by April 2025, two years later. It was also added that the minimum wage rate will be adjusted annually according to inflation.

[Image source=Pixabay]

Delivery platform companies can choose between 'paying minimum wage per hour' or 'paying minimum wage per delivery' starting April 12. The former requires paying $17.96 per hour reflecting all the time delivery workers are logged into the app. The latter calculates only the time spent on deliveries but must pay at least 50 cents per minute (about 650 KRW).

New York City estimates that there are about 60,000 food delivery app workers in Manhattan, currently earning $7.09 per hour (about 10,000 KRW).

New York City Mayor Eric Adams stated in a press release, "Delivery workers have been delivering for us all this time," and "Now it is time for us to move for them."

He explained, "The new wage system, which increases the hourly wage by nearly $13, will help delivery workers and their families maintain their livelihoods and secure greater economic stability," and "It will also help our city's dining industry to thrive."

Ligia Gualpa, director of the food delivery workers' group 'Workers Justice Project,' welcomed the policy, saying, "The minimum wage system for food delivery workers will change the lives of thousands of households and realize justice."

However, delivery platform companies such as DoorDash and Uber Eats criticized it as an "extreme policy."

DoorDash stated in a press release, "We do not oppose minimum wage, but this is an extreme policy that goes beyond industry standards." They also said they are considering lawsuits to secure labor flexibility.

Uber Eats pointed out, "The city is not honest with delivery workers," and said, "They will pay money by eliminating jobs, blocking tips, and forcing more deliveries."

Previously, New York City introduced a system guaranteeing minimum wage to drivers working for ride-hailing service apps like Uber and Lyft in 2018.

Meanwhile, labor representatives of the Korea Minimum Wage Commission argued during this year's minimum wage review process that minimum wage should also be applied to platform workers. However, employer representatives countered that platform workers are not workers under the Labor Standards Act and therefore are not subject to the Minimum Wage Act.

Also, delivery workers of the delivery platform 'Baedal-ui Minjok' demanded an increase in the basic delivery fee on the 26th of last month, stating, "Baedal-ui Minjok has steadily raised delivery fees from consumers and self-employed businesses, but the 'basic delivery fee' paid to delivery workers has been frozen at 3,000 KRW for nine years."

This content was produced with the assistance of AI translation services.