Minneapolis Mayor Jacob Frey has officially vetoed an ordinance passed by the Minneapolis City Council that would set a minimum wage and establish other protections for rideshare drivers within the city.
Council members passed the ordinance last week after both Uber and Lyft threatened to severely reduce or even pull their business entirely from Minneapolis.
In announcing the veto, Frey announced that Uber agreed to pay a $15.19 minimum wage, equivalent to the minimum wage in Minneapolis. Uber, according to Frey, has also guaranteed drivers will make at least $5 per trip, regardless of how long the trip is within the Minneapolis metro area.
“Over the past couple weeks, I have spoken with drivers, riders, advocates, business associations, labor unions, and rideshare companies alike – and from the feedback we gathered, it’s clear we need more time to get this right,” said Mayor Frey. “In the coming weeks, we will work in partnership with all stakeholders to do our homework, deliberate, and make sure we put together an ordinance that is data-driven and clearly articulates policies based on known impacts, not speculation.”
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The council's ordinance would have set the minimum wage for rideshare drivers equivalent to the city's minimum wage of $15.19, or at least $1.40 per mile and $0.51 per minute, or $5, whichever is greater.
It also offered driver protections including account deactivation notifications.
Councilmember Robin Wonsley was the ordinance's lead author and called Frey's veto, "An inexcusable betrayal of Minneapolis workers."
"This fight is not over. The drivers who have been organizing for this will continue to show up, because their livelihoods are on the line. And as long as I’m in City Hall, I’ll support their work and the rights and dignity of every worker in the city," wrote Wonsley.
A similar measure passed by the Minnesota legislature earlier this year was vetoed by Governor Tim Walz after Uber and Lyft threatened to pull service from the state.
In announcing his veto, Frey's office wrote that they mayor will begin a process for a new ordinance in the coming weeks. His office stated that a number of stakeholders would be involved, including drivers, labor unions, business associations, disability advocates, City staff, Council representation, Mayor’s staff, and representatives from Uber and Lyft.