President Luiz Inácio Lula da Silva has taken a significant step towards improving labor protections for drivers of ride-hailing apps in Brazil. This week, he sent Congress a bill proposing new regulations that aim to provide better working conditions for the 778,000 drivers working on ride-hailing apps, including taxi apps, as per the latest Census data.
The bill is the first major initiative of the Lula administration following the launch of the Partnership for Workers’ Rights alongside U.S. President Joe Biden in September 2023. This partnership is primarily focused on addressing issues within the gig economy, and the proposed regulations for ride-hailing app drivers are a key component of this initiative.
One of the key provisions of the bill is the proposal of a minimum hourly wage of BRL 32.10 (USD 6.48) for drivers, with a significant portion allocated for work-related expenses such as fuel and internet service. This hourly wage is higher than the current federal minimum wage in Brazil, which stands at BRL 6.42 (USD 1.30) per hour. Additionally, the bill mandates both companies and drivers to make social security contributions, ensuring that drivers have access to important benefits and protections.
President Lula emphasized the groundbreaking nature of the bill, highlighting that it would offer much-needed protections to disenfranchised app drivers. He noted that few countries have enacted similar regulations for app drivers, with Spain and South Korea being notable exceptions. Lula also expressed his intention to share the bill’s final draft with President Biden as a first step in implementing the agreement on workers’ rights between the two countries.
The bill specifically covers drivers of four-wheeled cars working on ride-hailing apps, leaving out other types of gig workers. This targeted approach allows for a more focused and effective set of regulations that address the unique challenges faced by ride-hailing app drivers.
Overall, the proposed regulations represent a significant milestone in the effort to improve working conditions for gig economy workers in Brazil. By providing a minimum wage, work-related expense coverage, and social security contributions, the bill aims to ensure that ride-hailing app drivers are treated fairly and have access to essential protections. President Lula’s commitment to advancing workers’ rights through this bill sets a positive example for other countries grappling with similar issues in the gig economy.
