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A hunger-strike entering its 15th day ended in victory for New York City taxi drivers on Wednesday after receiving hard-earned concessions from the city to alleviate the crushing debt they have faced for generations.
The deal was made between the New York Taxi Workers Alliance and Marblegate Asset Management, the asset management company that controls most of the city’s taxi medallion loans. Under the new deal, Marblegate will restructure all outstanding loans to $ 200,000 and cap all debt payments at $ 1,122 per month, in addition to guaranteeing the debt of all taxi drivers.
“Taxi workers have worked tirelessly to make New York City the most vibrant city in the world, and we refuse to leave them behind,” Mayor Bill de Blasio said Wednesday. “I am proud to have worked with the senator [Chuck] Schumer, NYTWA and Marblegate to achieve a fair and sustainable solution that builds on the success we have had in reducing the debt burden for the hardworking drivers who move our city forward.
The city taxi medallions – the transferable license system by which the city grants drivers the right to drive yellow cabs – had their notorious value swollen by scumlords in the early years, with predatory lenders rushing to make offers to largely immigrant communities desperate to buy a system they believed would help them earn a living. This hypothesis was not necessarily unfounded either, especially since the city was explicitly brag the medallion system as ‘better than a stock’ and a ‘way to a carefree retirement’. But far from blazing a trail into the middle class, the value of medallions was gutted by the arrival of email vehicle companies like Uber and Lyft in 2018. When it became apparent that the bubble had burst, the city of New York saw a wave of at least eight suicides by taxi drivers who realized how extreme their financial obligations were.
Taxi driver Erhan Tuncel, 61, for example, said to the curtain Wednesday that the deal negotiated between the taxi drivers and Marblehead would ease a heavy burden on him, given that his total inset debt stood at $ 690,000 with monthly payments of $ 3,800.
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“The lower monthly payment is a huge break for all of us,” Tuncel said. “It means we can put in a full day of work and be happy with the money we’re making home because owning and operating a locket in New York is an expensive business. In addition to the medallion payments, we cover all expenses such as insurance, vehicle maintenance, TLC fees, inspection fees – it all adds up. I am thrilled and happy for all the owner pilots who are going to enjoy a huge break. “
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