Human Capital Update: Gig Work, Labor Practices, and AI Ethics

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Welcome to this week’s Human Capital report. Significant developments unfolded this week concerning on-demand service providers – including Uber, Postmates, DoorDash, and Instacart – and the individuals who contribute to their gig economies.

Furthermore, the Attorney General of New York initiated legal action against Amazon, focusing on the conditions and practices within its warehouse labor environment.

Twitter also announced new pledges to enhance diversity within its leadership ranks, with goals set for achievement by the year 2025.

AI Ethics and Google

Google recently terminated the employment of another leading AI ethicist, Margaret Mitchell. This follows previous controversies within the company’s AI ethics team.

Internally, Google has released the findings of its investigation into the circumstances surrounding the departure of Dr. Timnit Gebru.

Please accept apologies for the extended length of this newsletter. However, all the information presented is considered crucial and relevant.

Newsletter Update

A brief announcement: Human Capital is undergoing a name change due to reported confusion. Subscribers should anticipate a new name appearing in their inbox next week. The new title is still being finalized.

The decision to rebrand aims to improve clarity and better reflect the newsletter’s content.

The Evolving Landscape of the Workforce

Legislative Action Targeting Amazon Warehouse Practices

Assemblywoman Lorena Gonzalez of California, the driving force behind the gig worker legislation AB 5, has introduced a new bill, AB 701, designed to regulate productivity quotas at major companies including Amazon and Walmart. This legislation seeks to establish statewide standards to enhance the protection of warehouse employees.

According to Assemblywoman Gonzalez, “Despite substantial profit gains during the pandemic, employees within these warehouses are facing increased expectations for speed and output, often without adequate safety protocols.” She emphasized the unacceptability of a large, affluent employer jeopardizing the well-being of its workforce for the sake of expedited delivery services.

Legal Challenge to Amazon by the New York Attorney General

New York Attorney General Leticia James has initiated legal proceedings against Amazon, alleging deficiencies in health and safety provisions for its employees. The lawsuit claims Amazon retaliated against workers Christian Smalls and Derrick Palmer following their complaints regarding the company’s response to the COVID-19 pandemic. This action followed Amazon’s preemptive lawsuit against the Attorney General’s office, disputing her authority over workplace safety regulations.

Attorney General James released the following statement regarding the matter.

Simultaneously, Amazon warehouse workers in Bessemer are actively pursuing unionization. Recent reports indicate the company was manipulating traffic signals to hinder workers’ ability to communicate effectively with one another.

Insights from a Former Postmates Executive on the Gig Economy

Vikrum Aiyer, formerly the vice president of global public policy and strategic communications at Postmates, published a memo addressed to his former colleagues and other stakeholders within the gig economy. This memo outlines his perspective on the necessary future developments for the industry.

Aiyer argues that “it would be imprudent to assume that minor adjustments to worker classification or a single state-level ballot initiative will create a lasting solution to address the core concerns of American workers: the opportunity to earn a living, support their families, and avoid future uncertainty.”

Postmates Drivers Vulnerable to Fraudulent Schemes

A recent investigation by The Markup revealed that scammers are increasingly targeting Postmates delivery workers. In one documented case, a scammer defrauded a worker of $346.73. The complete report can be accessed here.

In related developments, Uber, the parent company of Postmates, has appointed Alex Rosenblat, a labor researcher and known critic of Uber, to lead its marketplace policy, fairness, and research initiatives.

Uber Drivers Protest for Protective Equipment and Hazard Pay

Uber drivers staged a demonstration on Market Street in San Francisco, outside Uber’s headquarters, demanding adequate personal protective equipment (PPE) during the COVID-19 pandemic. They also requested compensation for the time spent sanitizing vehicles to ensure the safety of both themselves and passengers.

Uber’s Legislative Efforts in Europe and a Setback in the U.K.

Uber is currently lobbying within the European Union for standards similar to California’s Proposition 22. A white paper proposed a “new standard” for platform work, suggesting benefits for workers while simultaneously avoiding the possibility of collective bargaining. As noted by Natasha Lomas of TechCrunch:

However, in the U.K., the Supreme Court ruled that Uber drivers are classified as employees, entitling them to minimum wage and paid holiday. Further insights from Lomas:

DoorDash Drivers Employ Collective Action to Address Low Pay

As reported by Vice, DoorDash drivers are coordinating to decline low-paying orders. This strategy aims to increase base pay by collectively influencing the system.

According to Vice’s reporting:

The Broader Impact of the Gig Economy

Bloomberg published a comprehensive feature examining the impact of the tech industry’s gig economy on workers in other sectors. It is highly recommended reading, and a key excerpt is available.

Biden Administration Nominates Jennifer Abruzzo to Lead the NLRB

President Biden has nominated Jennifer Abruzzo to serve as the general counsel of the National Labor Relations Board (NLRB). Currently, Abruzzo is the special counsel for strategic initiatives at the Communications Workers of America (CWA). The CWA has been actively involved in supporting unionization efforts at tech companies such as Glitch and Alphabet. Her appointment could significantly benefit both tech and gig workers.

CWA President Chris Shelton stated:

Instacart Disputes Worker Account Suspensions

Instacart has reportedly suspended worker accounts for cancelling orders. According to Vice, workers cited legitimate reasons for cancellations, including safety concerns and incorrect delivery addresses.

Instacart maintains that these suspensions are part of a fraud prevention policy designed to pause accounts exhibiting potentially fraudulent or suspicious activity.

Diversity and Inclusion in Tech: Recent Developments

Twitter Pledges Leadership Diversity

Twitter has formally joined the Silicon Valley Leadership Group’s 25×25 initiative. This commitment entails either achieving 25% representation of underrepresented groups within its leadership by 2025, or a 25% increase in their presence in leadership roles during the same timeframe.

• The pledge focuses on increasing representation of employees from underrepresented backgrounds.
• Companies can choose to meet the goal through either a fixed percentage of leadership or a proportional increase.

According to Twitter’s latest diversity report, its current leadership demographics stand at 6.5% Black, 3.9% Latinx, 2.8% multiracial, and less than 1% Indigenous.

Deconstructing the “Pipeline Problem”

Recent discussions have centered on the concept of the “pipeline problem” in the tech industry. An insightful conversation with Dr. Joy Lisi Rankin, a researcher at AI Now, explored the fallacies surrounding this notion. Perspectives were also included from Bo Young Lee, Uber’s Chief Diversity Officer, and Courri Brady of Paradigm.

Further details regarding this discussion can be found here.

Allegations of Sexism at Mailchimp

Kelly Ellis, formerly a principal engineer at Mailchimp, recently resigned from her position, citing concerns about pay inequity compared to her male colleagues. Company leadership responded with a statement indicating a thorough, independent investigation found the allegations to be without merit.

Enhanced Transparency with Glassdoor’s Demographic Filters

Acknowledging that employee experiences can vary significantly based on demographic factors, Glassdoor has introduced a new feature. This allows users to filter company ratings and reviews based on demographics, providing a more nuanced understanding of workplace environments.

Justice Through Code: Empowering Returning Citizens

Justice Through Code is an intensive, semester-long program hosted at Columbia University. It focuses on equipping individuals re-entering society with coding skills and essential interpersonal abilities, offering a pathway to new opportunities.

The program benefits from the support of major technology companies, including Amazon Web Services, Coursera, Google, and Slack.

Promise Secures $20 Million in Series A Funding

Promise, a platform simplifying payments for obligations like child support, utilities, and parking tickets, has successfully raised $20 million in a Series A funding round. This achievement positions founder Phaedra Ellis-Lamkins among a select group of Black women who have secured over $1 million in venture capital.

Controversy Surrounds Google’s AI Ethics Team

Margaret Mitchell, the founder and former co-lead of Google’s ethical AI team, was terminated from her position. Mitchell announced her departure through a post on Twitter.

Google confirmed the termination to TechCrunch, stating:

This news followed an internal announcement regarding the investigation into Timnit Gebru’s exit, as reported by Axios. The company refrained from disclosing the investigation’s findings but indicated plans to implement new policies aimed at fostering diversity and inclusion.

Google Appoints New Ethical AI Leader

In related news, Google has appointed Dr. Marian Croak to lead its responsible artificial intelligence division within Google Research, as reported by Bloomberg. Dr. Croak previously held the position of vice president of engineering at the company.

In this new capacity, Dr. Croak will oversee teams dedicated to accessibility, AI for social good, algorithmic fairness in healthcare, brain fairness, and ethical AI, among other areas. She will report directly to Jeff Dean, SVP of Google AI Research and Health.

TC Sessions: Justice – An Upcoming Event

TechCrunch Sessions: Justice is scheduled for March 3rd. Tickets are available for $5 and the event will feature speakers such as Arlan Hamilton of Backstage Capital, Christian Smalls, a former Amazon warehouse worker, and Congresswoman Barbara Lee.