Executive Council Statement | Better Pay and Benefits

New York City Yellow Medallion Taxi Industry

Miami, FL

Under the current scheme in place in New York City, more than 44,000 workers who drive the city's taxicabs are being blatantly exploited by a cartel of owners who have manipulated the system to deprive the drivers of income and benefits and to deny these workers the right to a union.

The system permits the owners of the city-authorized taxi medallions to "lease" the right to drive a yellow, medallion cab to workers who have been unfairly classified as "independent contractors." Drivers must pay as much as $130 a day for their "lease" and fuel costs. Under this sham arrangement, the owners can shirk responsibility for paying fair wages, benefits, social security payments and for supporting unemployment and workers compensation programs. Many drivers, working more than 12-hour shifts under difficult conditions, end the day taking home less than a minimum wage, with no wage or hour protections, no health, life, disability or unemployment insurance and no protection for their right to organize a union and have a voice in how they are treated on the job.

The AFL-CIO joins with the Service Employees International Union, the New York City Central Labor Council, and the New York State AFL-CIO in calling on the New York City Council and the New York City Taxi & Limousine Commission to end the Yellow Medallion Taxicab Industry Leasing System and to implement an appropriate system that clearly and accurately classifies drivers as employees and that guarantees them all basic worker benefits and protections, including the right to organize a union and bargain with their employers for a fair contract.