Reference no: EM133309410

Luis, a 36-year-old recent grad from a Canadian university medical school, was not looking forward to the rest of his day after finishing his morning shift at the local hospital's medical records department. He still needed to qualify for his medical license, which required more time and money to meet the provincial medical association's licensing requirements for his medical specialty. Seeking a new profession in a new country had certainly presented its share of challenges to Luis and his young wife. Returning to their former home in Central America was not an option but starting a new in this major urban centre in western Canada certainly had its challenges too. He also knew he must now get "behind the wheel" in a few short hours to help save for this future career.

For the past two months, Luis had been driving for the new Uber-like ride share program that had entered the regional market where he lived. While the company promoted this opportunity as a "You are in charge" proposition, the Text4Ride company left much to be desired both financially and in terms of fairness from his perspective. Luis had to invest his limited savings in the vehicle itself, including maintenance, gas, insurance and taxes. On top of that, he had to pay tolls that were frequently required for the express route to the busy international airport. There were the occasional parking tickets plus the "dead miles" (the distance driven while waiting for or driving to pick-up a passenger). Luis also paid for his dash camera and the required amenities for riders (bottled water and snacks). Fortunately, his car was in good condition so he did not have to worry about exorbitant leasing costs for a companyowned vehicle, which Text4Ride automatically deducted from a driver's pay. There were also no guarantees about how much he would earn in a given day as well as the risk of financial loss incurred should he was not able to drive due to illness or injury on the job. His wife had recently said,

"You'd be better off working at McDonald's." Luis knew he was not alone. Other drivers complained to him about the company's lack of transparency and consistency regarding decisions that financially impacted them. They were frustrated because they had difficulty figuring out their earnings, as the company regularly changed their compensation calculations and procedures related to operating expenses charged to drivers by the company. There was also no reimbursement by the company for commercial insurance required by all Text4Ride drivers. One of Luis's friends who drove on weekends told him that he had received two "time out" deductions last week (meaning penalties because he failed to pick the right number of fares at peak periods during the day or evening) without any explanation or proof. "It's a scam!" one other driver angrily yelled as he exiting the garage.

Questions

1. What recourse does Luis have about his current situation with Text4Ride?

2. Does the "gig" economy provide potential "recruiting ground" for today's unions? Explain.