Portland ban on tips-for-fares scheme moves ahead with cab drivers' support
Published: Wednesday, July 13, 2011, 4:32 PM
Portland's Private For-Hire Transportation Board of Review acted today on a proposal to outlaw kickbacks between taxi drivers and hotel doormen.
Taxi driver Red Diamond helped push a proposal to ban the practice among some cab drivers -- and pedicab drivers and town car operators in Portland -- of giving $10 tips to doormen in exchange for fares. A city regulatory board today gave the plan tentative approval.
The board's unanimous recommendation?
The group tentatively approved the ban, voting this afternoon to forward the proposal to the Portland City Council, perhaps as soon as September. But the transportation board also wanted to make a few changes to the new rules, which would affect not just cabbies but also pedicabs and town-car drivers.
That's an important point. Town cars compete with taxis for top-dollar airport fares, and some cabbies say the controversial practice of tipping doormen to get those fares started with town-car operators. By Portland code, town cars have to charge more than taxis to take downtown passengers to the airport, $50 as opposed to $35.
"For most taxi drivers, it's a defensive measure," said Steve Entler, general manager of Radio Cab, during public testimony at the meeting.
The board's concerns?
Under the current proposal, first-time offenders would get $1,500 fines. Some argued that may be too steep, especially if the city ever expects to collect the money.
But Kathleen Butler, a regulator with the city's Revenue Bureau, said a big fine would be a good deterrent. "We are looking for a very serious consequence," Butler said.
Bill Perry of the Oregon Restaurant Association said employers should get warnings first if the city catches one of their employees violating the anti-kickback rule. That way the employers can deal internally with the problem, he said.
The board also worried doormen -- who work for minimum wage plus tips -- hadn't had sufficient opportunity to comment on the proposed change. Without that, the City Council could refer the plan back to the transportation board for further refining.
A number of cabbies, including several immigrants, applauded the ban. "They told me in America I would work free," one such cab driver said.
Source; http://blog.oregonlive.com/portlandcity ... fares.html