SEATTLE — Ride-sharing companies such as Uber and Lyft have been a big boon for folks trying to get around town, but a new report says these companies are running over local democracy.

The National Employment Law Project's "Uber State Interference" report details how transportation network companies have bought, bullied and bamboozled their way into states. Report co-author Rebecca Smith, senior counsel for the project, said Uber and Lyft have more lobbyists nationwide than Amazon, Microsoft and Walmart combined.

She said one of the companies' favorite tactics for getting around regulations in cities was to tell consumers that cities were trying to ban them from operating.

"In reality, what was happening is that the cities were imposing some reasonable regulation on the companies so that they could fit better into an overall transportation system that the cities have to and do regulate,” Smith explained.

Smith said legislators and city council members across the country told her they felt bullied by the companies. According to the report, Uber spent nearly $75,000 and Lyft spent more than $50,000 on lobbying in Washington state in the first half of 2017.

Ride-sharing companies say they make transportation more efficient and safer, especially by helping to keep people who have been drinking from driving.

The report said Uber and Lyft have been bad for workers too. Because drivers are classified as independent contractors, they aren't entitled to protections as employees, such as a guaranteed minimum wage.

Smith said these companies treat drivers like employees but skirt laws providing them basic safeguards as workers.

"In a highly dangerous occupation, workers are not entitled to workers' compensation if they are injured on the job,” she said. “Workers have no discrimination protections and, as some academics have said, it seems like discrimination is hard-wired into this system with the star-rating system."

Smith said drivers who receive bad ratings can be fired.

In an unprecedented move in 2015, the city of Seattle passed a law allowing drivers for ride-sharing companies to unionize. The U.S. Chamber of Commerce has sued the city to stop the law from going into effect, arguing that the National Labor Relations Act excludes independent contractors organizing.


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A fiscally conservative advocacy group is pushing for the renewal of President-elect Donald Trump's Tax Cuts and Jobs Act.

Americans for Prosperity launched a $20 million nationwide campaign earlier this week, urging Congress now is not the time for more taxes.

Andrea Moreno, executive director of Honest Arizona, said it comes at too high a price. She contends big corporations and the wealthy do not pay their fair share, which is why her organization is educating voters about the tax code's consequences.

Moreno stressed Trump's tax code would affect funding for such priorities as public education, access to health care and other safety net programs in Arizona and across the country.

"Cutting assistance like SNAP and WIC -- and as a mother, that is something that means a lot to me -- that would be detrimental for mothers and children as well," Moreno pointed out. "The ACA is another one, and making changes to Medicaid, which would definitely impact a lot of seniors."

Americans for Prosperity said if Congress isn't able to renew the measure, millions of Americans will have to pay an extra $1,500 or more in taxes next year. They project Arizonans could face an even steeper increase and face an extra $2,700 in 2026.

Moreno noted while Republicans have argued the plan will lead to economic growth, she disagrees and believes things like state and local public spending could be put in jeopardy.

Trump has proposed a number of tax policy changes, including cutting the maximum corporate income tax rate to 21%, redesigning international tax rules and providing a deduction for pass-through income. Such proposals would, on average, lead to a tax cut for the richest 5% of Americans and a tax increase for all other income groups, according to the Institute on Taxation and Economic Policy.

Moreno argued it does not make sense.

"It is disproportionately helpful for the wealthy and not for people who actually need it," Moreno stressed.

Moreno encouraged Arizonans to get educated on the possible changes and to reach out to their elected officials to express their opinions on the tax code. She added it is important for democracy for everyone to make their voice heard.

"Your local politicians are really instrumental in some of these things," Moreno emphasized.


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Michigan's tipped wage system is on the brink of extinction, with changes set to take effect next month after a state Supreme Court ruling last year mandated higher wages for tip-reliant workers.

The ruling will eliminate tipped wages below minimum wage and raise the state's minimum wage to more than $12 per hour.

Justin Winslow, president and CEO of the Michigan Restaurant and Lodging Association, said the almost 250% increase in the wages of tipped workers would be catastrophic and he said it is happening at the worst possible time, as inflation hits his industry more than others.

"You add that difficult environment to this new policy and you have the recipe for the loss of 60,000 restaurant jobs in Michigan and the closure of one in five full-service sit-down restaurants in Michigan," Winslow contended. "When I say catastrophic I think that's what we mean."

Supporters of the change argued it ensures fair pay and reduces income instability for tipped employees, who can face unpredictable earnings. Tipped wages are set to be phased out Feb. 21.

Winslow pointed out servers are currently earning around $30 an hour, with some making even more, all while enjoying flexible schedules. He emphasized roughly 80% of workers want to preserve the current system. On a positive note, Winslow noted bipartisan efforts are in motion, with similar bills from both parties set to be discussed in a hearing today, to protect tipped wages.

"The new House leadership seems to be making it a real priority to try to get something done in advance of February 21st, so we'll be front and center there making sure they understand and hear from the voices of impacted restaurant workers and restaurant owners."

The Michigan Restaurant and Lodging Association warned as many as 60,000 jobs could be in jeopardy if businesses are required to eliminate tipped wages.


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The faculty of a New York City music school is planning to strike after contract negotiations stalled.

The Manhattan School of Music's Precollege program faculty union has been negotiating a contract since June, and said it has been a protracted effort. The union wants a pay increase aligning with other schools such as Julliard and the Mannes School of Music.

Adam Kent, president of the union, said the school's low pay affects teachers' ability to work.

"There are, as the fall semester is ending, several teachers who are leaving altogether," Kent pointed out. "There are a number of teachers I speak to who tell me they used to teach 10-hour-long days, now they're down to a single student who will take lessons with them at their home instead of at the school."

While the school has said there's not enough money for the pay raise, tax filing data showed the school's president and executives received large pay increases in recent years. Other data noted the school's tuition has risen 58% since 2014.

In a statement, the school challenged many of the union's accusations about why negotiations have taken so long. While the union has been around for a decade, Kent emphasized contract negotiations have always been hard-fought battles.

The union has made concessions regarding the pay increase but Kent feels the school must do its part so the two parties can reach an equitable agreement. When negotiations began, union members gave the school the benefit of the doubt, adding the sentiment changed after reviewing the school's financial data.

"It's clear there's no reason they can't afford to pay us fairly," Kent asserted. "They've never made a claim of an inability to afford these raises at bargaining. Their response has been, 'We just don't have to.' They don't take us seriously. They feel why should we start paying more money for the same work we've had up until now."

Kent pointed out the pay raise is sought to match the cost of living in New York City. The union also wants to keep class sizes at reasonable levels and ensure teachers can easily access remote learning tools when needed through the next contract. A Change.org petition from the union has garnered close to 2,000 signatures.


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