Dying For Debt Relief: Why Are New York Taxi Drivers On Hunger Strike? | Debt News

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New York, United States – When Richard and Kenny Chow moved with their family to the United States from Taiwan in 1987, the iconic yellow taxis that transport New Yorkers from place to place were a symbol of the city and the desirability of a better life in their new home. .

This promise was also perpetuated by municipal authorities. They promoted the medallions – the certification needed to operate yellow taxis – as a reliable investment that, combined with hard work, could open the doors to prosperity. It was a pitch that resonated with many immigrant workers.

According to New York City data, 40% of locket owners are from South Asia.

For years, drivers have said the deal has stood. After purchasing a locket for $ 410,000 in 2006, Richard said he was “making the American dream come true, bringing in money and supporting my family,” which then had two children.

He said his brother Kenny was so encouraged by the success that he saved enough for a down payment on a locket he paid over $ 700,000 for in 2009.

“He thought it was a very safe investment,” Richard told Al Jazeera. “He trusted the city.

But that trust was shattered with the advent of app-based ridesharing.

As Uber, Lyft, and other ridesharing services have taken off with consumers, work has become rarer for New York City taxi drivers.

Like other medallion owners, Kenny and Richard ended up with hundreds of thousands of dollars in debt for certifications that had fallen in value – and held a job the drivers say Al Jazeera currently pays little more than the minimum salary.

Hunger striker Richard Chow said he bought his locket in 2006 for $ 410,000 and his current monthly payments on his unpaid debt are $ 2,766. [Courtesy of Brian Osgood]

According to the New York Taxi Workers Alliance (NYTWA), the average medallion owner-driver owes $ 550,000 on medallions valued at just over $ 100,000 each.

Richard said he bought his locket in 2006 for $ 410,000. His monthly payments on his outstanding debt of approximately $ 400,000 are $ 2,766.

That’s why Richard and other taxi drivers have gathered outside New York City Hall for more than a month to ask for debt relief that they believe is crucial to their survival.

At the center of their demands is a proposal from NYTWA, a 21,000-member union, that would cap outstanding medallion loan debt at $ 145,000 and monthly payments at $ 800.

The city has a $ 65 million debt relief program for locket owners. But NYTWA called the program “nothing more than a bank bailout” that “will give $ 65 million directly to banks and hedge funds that hold locket debt in return for a negligible reduction in principal that is due to them ”.

City officials did not immediately respond to Al Jazeera’s request for comment.

Driven to suicide

The plight of the heavily indebted drivers has caught the attention of politicians such as Congresswoman Alexandria Ocasio-Cortez and Senate Majority Leader Chuck Schumer, as well as New York City Comptroller Scott Stringer. They called on Mayor Bill de Blasio to adopt NYTWA’s relief program proposal. But drivers say the mayor has not been responsive. In an escalation of tactics, several drivers went on a midday hunger strike on October 20.

Richard Chow, now 63, is one of them. Sitting in a chair alongside drivers from India, South Korea, Romania and Poland, Chow says one driver is noticeably absent: his brother Kenny.

“When the locket lost its value, it was devastated. He lost everything, ”said Richard.

Struggling with hundreds of thousands of dollars in debt, Kenny Chow committed suicide in 2018, one of nine drivers who have committed suicide in recent years.

“I lost my brother. I was heartbroken, ”Chow said.

While the locket once provided a pathway to the American Dream for immigrants, it also brought in substantial income for the city. According to a 2019 New York Times survey series, taxi medallions have generated more than $ 850 million in revenue for the city through the administrations of Bill di Blasio and former Mayor Michael Bloomberg, while the Prices were becoming artificially inflated by industry leaders who drove drivers to become sky-high. ready.

Chime Gyatso, a taxi driver who immigrated from India in the late 1990s and is currently on a hunger strike, said the city has promoted the locket as a good investment.

“They were selling medallions for a million dollars,” he said. “The city deceived us. I bought a locket for $ 850,000 in 2014. With Uber and Lyft there is no business, so how do I pay the money? I still owe over $ 600,000.

A memorial to New York City medallion owners who committed suicide [Courtesy of Brian Osgood]

The economic impact of the COVID-19 pandemic on the number of passengers has also made life increasingly difficult for yellow taxi drivers.

Wain Chin, a 54-year-old Burmese driver on hunger strike, owes more than $ 570,000. “Some nights I can’t sleep because I’m thinking about how I’m going to pay for it,” he said. “We have to compete with Uber and Lyft, and they have so many cars on the streets. We are almost no longer getting minimum wage. Even in my lifetime, I will not be able to repay the loans.

“Putting our body into play”

New York City officials did not immediately respond to Al Jazeera’s request for comment.

Although Blasio’s administration has not made any statements since the start of the hunger strike, an Oct. 16 press release hailed the city’s $ 65 million plan, saying it has until has now helped alleviate the debt of locket owners over $ 16 million.

But Kuber Sancho Persad, a 26-year-old yellow cab driver who is on hunger strike, told Al Jazeera that the city’s current schedule was inadequate. “According to the mayor’s plan, I am not eligible. Right now I have over $ 600,000 in debt that my father, who was a driver, left behind when he died four years ago. My mom got sick and couldn’t work, so I started driving full time in 2016. ”

While the stakes are high, drivers say the feeling of fighting together has been invigorating.

“We put our bodies on the line. Without relief there will be more pressure on the rider,” said Wain Chin. “I hope the mayor is listening to us. Even with his plan, the debt is too high.

If the hunger strike does not lead to the adoption of the NYTWA plan, Mohammad Tipu Sultan, former yellow cab driver and current NYTWA organizer, says the drivers will continue to fight. “We will continue to build momentum,” he said. “The mayor has to see how big we are, how powerful we are. We run the city.



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