According to the national media, NYC Uber drivers won’t get a raise before the holidays after all. Manhattan Supreme Court has granted Uber’s bid to temporarily block a pay hike for ride-share drivers from going into effect next week.
Uber filed suit against the city Taxi and Limousine Commission (TLC) seeking to halt a new rule that would raise driver’s pay from 2019 rates, by 7.42% per minute and 23.93% per mile.
The company claimed the increase would force it to shell out an additional $21 million to $23 million per month and raise rider fares by 10% amid the holiday season.
Manhattan Supreme Court Justice Arthur Engoron granted an order blocking the raise from taking effect, at least until arguments can be heard in the case on January 31.
The TLC said that it plans to appeal the decision.
“We are disappointed for the tens of thousands of drivers who are once again being made to bear the rising costs of inflation all on their own, with no help from the multibillion-dollar company they work under,” TLC Commissioner David Do said in a statement. “We will aggressively defend this important standard for our drivers.”
In its suit, Uber argued that the pay hike is “arbitrary and capricious” because the TLC changed the way it calculated for inflation and refused to provide the documentation that it based the measure on.
Uber spokesperson Freddi Goldstein said: “Drivers do critical work and deserve to be paid fairly, but rates should be calculated in a way that is transparent, consistent and predictable.”
The parties are due back in court on January 31st.