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The Minneapolis City Council’s decision to enforce minimum wage standards for Uber and Lyft drivers has sent shock waves beyond its city’s borders. On the surface, the move appears to be a step toward ensuring fair compensation. However, beneath the veneer of economic justice lies a complex issue that the council has ignored: the intrinsic value of control.
Scientific research reveals the psychological toll of lacking control. A striking example comes from post-surgery pain management. The standard practice of administering narcotics at fixed intervals leads to patients’ high anxiety and unbearable pain. Patients constantly nag nurses for their next dose. However, in the 1980s, several studies found that allowing patients to self-administer painkillers resulted in reduced narcotic use instead of overdose or addiction. It became evident that when patients couldn’t decide on their own, they required more medication to cope with the pain itself and their lack of control.
Control means being able to influence the outcome of a situation through autonomy and choices. This primitive desire drives us to earn more money, which equals control. To make money, you have to give up control of your time, energy and freedom.
But how much money would you give up for more control? Many Twin Cities’ Uber and Lyft drivers are willing to earn less in exchange for more control. They can choose which rides to accept and when and how long they work. Drivers between jobs know they can fall back on this temporary gig anytime. No job hunting hassles or interview anxiety. They can start, stop or pause at any time.
Uber and Lyft drivers also enjoy perks that most American workers envy. No micromanagers breathing down their necks. No fear of being late or leaving early. No threat of getting fired for not meeting a quota. How many workers who earn more than the minimum wage have this kind of freedom? Uber and Lyft drivers are literally and figuratively in the driver’s seat.
Are workers willing to trade their pay for more control? You bet. About 30% of workers would take up to a 5% pay cut for more autonomy and choices, such as flexible hours, working from home and choosing when to take vacations. Flexibility ranks as important as retirement benefits regarding compensation. For the workers with a fair amount of autonomy and choices, what does it take to give up that sense of control? A pay raise of about $10,000.