san diego taxi reform - united taxi workers of san diego

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San Diego Taxi Reform

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On July 24, 2014 United Taxi Workers of San Diego presented for City of San Diego's Public Safety and Livable Neighborhoods Committee.

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Page 1: San Diego Taxi Reform - United Taxi Workers of San Diego

San Diego Taxi Reform

Page 2: San Diego Taxi Reform - United Taxi Workers of San Diego

1 INTRODUCTION

TAXI MEDALLIONS

UNIFORM LEASE AND LEASE CAPS

2

3

4

DISPUTE RESOLUTION & ANTI-RETALIATION

Page 3: San Diego Taxi Reform - United Taxi Workers of San Diego

The Need For ReformResearch on San Diego’s taxi industry conducted by local graduate students and researchers from the Association of Occupational and Environmental Clinics (AOEC), San Diego State University (SDSU) and the Center on Policy Initiatives (CPI) reveal serious concerns about the way the taxi industry currently operates.

Current public policy has failed to create a healthy and dynamic taxi industry that provides safe, quality service to city residents and visitors. Most importantly, the San Diego taxi industry’s current system fails to adequately address significant and continued concerns of: •Public Safety •Working Conditions of Taxi Drivers •Quality of Service for Passengers

Page 4: San Diego Taxi Reform - United Taxi Workers of San Diego

• ACLU of San Diego• American Federation of Teachers Local 1931• Assemblywoman Lorena Gonzalez• Center on Policy Initiatives• City Heights Community Development Corporation• City Heights Town Council• International Association of Machinists and Aerospace Workers• Mini Haha Market• Mid-City CAN• United Domestic Workers of America, AFSCME Local 3930

• MAAC Project • San Diego & Imperial County Labor Council• Fatuma Restaurant• Horn of African• Ocean Beach Hotel• San Diego Organizing Project• United Taxi Workers of San Diego• Coalition For Labor & Community Solidarity• Employee Rights Center• The San Diego City College Associated Student Government• Interfaith Coalition for Worker Justice

SAFE CAB San Diego is a coalition working to create a healthy and dynamic taxi industry that provides safe, quality services to city residents and visitors while also providing livable wages and safe working conditions for San Diego’s taxi drivers.

Page 5: San Diego Taxi Reform - United Taxi Workers of San Diego

$100K+

$3K

Taxi M

edallio

n T

ransfers

Medallion Transfers“Profit taking has occurred on a grand scale in San Diego’s taxicab permit market during the last six years.

Of the 125 new permits issued during that period, more than half have been transferred at least once.” – True North Research, 2011

Permits are public property of the City of San Diego and are therefore not private property of individuals or companies. Permits are a privilege granted by the City for a period of time, much like liquor licenses, and should be surrendered to the city upon cessation of operation.

Original Price

Transfer Price

Page 6: San Diego Taxi Reform - United Taxi Workers of San Diego

Allowing the transfer of Medallions is not good policy. It does not benefit the public in terms of better services and lower fares.

This practice benefits primarily those who receive the initial issuance by allowing them to profit hugely in the sale of these permits. Further, this practice encourages corruption in the industry especially in the allocation and issuance of Medallions.

Several cities, including Austin, TX; Los Angeles ;Minneapolis, MN; and San Jose, CA, have prohibited the transfer of medallions. Also, the San Diego International Airport has stopped all transfers of airport permits starting this year.

Page 7: San Diego Taxi Reform - United Taxi Workers of San Diego

I’ve been

driving for 10

years…

Medallion Issuance

Only 11%of licensed

drivers hold a medallion. 89% do not.

Lease Payments consist of

40% of drivers costs.

Drivers should be

given priority to be owner-operators.

Because a majority of licensed drivers do not hold their own permit, they should be given priority if permits are released. Drivers, who have served the City of San Diego for more than 5 years have been excluded from the true benefits of the taxi industry.

These drivers are qualified and ready, if given the opportunity to become owner-operators. This will result in lifting drivers out of poverty to enter the middle class. This will also democratized control of the industry to a larger group of stakeholders.

Page 8: San Diego Taxi Reform - United Taxi Workers of San Diego

Concept Concept

Anti-RetaliationAn avenue for drivers in the taxicab industry to raise concerns over safe practices without fear of retaliation is fundamental for promoting public safety, transparency, and establishing a healthy taxi industry.

The inability for taxi drivers to effectively monitor and report unfair business dealings by taxi owners decreases the safety and autonomy of taxi drivers while greatly reducing the health and economic viability of the taxi industry.

Page 9: San Diego Taxi Reform - United Taxi Workers of San Diego

Examples of Retaliation Regulations In Other Cities

NEW YORK Title 35 of the Rules of the City of New York §58-21(j) Retaliation. (1) An Owner must not retaliate against any Driver for making a good faith complaint against any Owner for violation of the leasing provisions . . . (2) “Retaliation” will be broadly construed, and will include imposing any adverse condition or consequence on the Driver or withholding or withdrawing any beneficial condition or consequence from the Driver. Fine for violation: $10,000 plus restitution to the driver for losses

CHICAGO MCC § 9-112-190 Retaliation. No medallion owner or lessor in a medallion-only lease may retaliate in any way against any chauffeur for disclosing, reporting, or testifying about any violation of this chapter or regulations thereunder or any law. Any violation of this section may result in revocation of the medallion.

Page 10: San Diego Taxi Reform - United Taxi Workers of San Diego

Dispute ResolutionCreating a forum to effectively resolve disputes between permit owners and lease drivers would fundamentally improve the quality of the taxi industry within San Diego.

Making sure that permit holders are accountable to lease drivers (and vice versa) regarding regulatory compliance concerning vehicle conditions, maintenance issues, and recordkeeping policies would greatly improve the condition of taxicabs out on the road.

Currently there exists no avenue for permit holders and lease drivers to truly hold each other accountable as most lease drivers have no choice but to agree to various arbitration agreements that severely limit their remedies.

Page 11: San Diego Taxi Reform - United Taxi Workers of San Diego

Examples of Dispute Resolution In Other Cities

SAN FRANCISCOArticle 1100 Regulation of Motor Vehicles for Hire §1120• The SFMTA employs hearing officers who serve as judges in "Disciplinary Hearings" that “concern a disciplinary action taken by the SFMTA concerning a SFMTA permit holder (a driver, medallion holder, color scheme or dispatch service)”• There is also a mechanism to appeal the decision of the hearing officers through a "Board of Appeals Hearing"

NEW YORK Office of Administrative Trials and Hearings (OATH)• The OATH Taxi and Limousine Tribunal is an independent tribunal responsible for hearings on issues relating to violations of New York Code and Taxi and Limousine Rules and Regulations. Hearing officers serve as judges.

Page 12: San Diego Taxi Reform - United Taxi Workers of San Diego

Uniform LeasesAdoption of a uniform lease will have multiple benefits for the industry as a whole.

First, it will help protect drivers from unfair or vague lease provisions such as arbitration clauses that discourage drivers from pursuing complaints against permit holders.

Second, uniform leases will help promote transparency in the taxi industry by promoting better understanding of each parties’ rights under the law.

Third, by adopting uniform lease provisions, it will allow for easier regulation of the taxi industry by standardizing the rules that govern permit holders and taxi drivers.

Page 13: San Diego Taxi Reform - United Taxi Workers of San Diego

SAMPLE UNIFORM LEASE - CHICAGO

Page 14: San Diego Taxi Reform - United Taxi Workers of San Diego

High Lease Rates

Long Hours Behind the

Wheel

Risks to Public Safety

Lease CapsThe cost of lease is the biggest overhead expense that drivers bear as independent contractors. “The current system encourages taxi drivers to drive when tired or sick, putting public health and safety at risk. ” Lease rates have more than doubled since 2002. A lease cap would: • Increase driver take home pay• Return job sustainability • Ensure fair practices • Promote public safety

Page 15: San Diego Taxi Reform - United Taxi Workers of San Diego

Several major cities, including New York City, Chicago, Seattle, Philadelphia, and San Francisco, have implemented rules regulating the maximum amount permit owners can charge a taxicab driver to lease a vehicle.

Examples of Lease Caps

Page 16: San Diego Taxi Reform - United Taxi Workers of San Diego

Thank You