Governor Gavin Newsom and state lawmakers have reached a landmark agreement with rideshare companies Uber and Lyft, allowing drivers to unionize and bargain collectively while maintaining their status as independent contractors. This significant development marks a new chapter in the ongoing debate over rights for gig workers in California.
The agreement includes a bill for collective bargaining, supported by the Service Employees International Union (SEIU), and a measure backed by Uber and Lyft to reduce the companies’ insurance requirements. Governor Newsom emphasized the collaborative effort, stating, “Labor and industry sat down together, worked through their differences, and found common ground that will empower hundreds of thousands of drivers while making rideshare more affordable for millions of Californians” (Fortune).
The collective bargaining bill allows over 800,000 rideshare workers in California to join a union, a move described by David Green, president of SEIU Local 721, as “the largest expansion of private sector collective bargaining in California history.” The bill must still pass in the California Senate and Assembly before being signed into law.
This compromise follows a 2020 voter-approved ballot measure that classified drivers as independent contractors, exempting them from benefits like overtime pay and unemployment insurance. The new legislation aims to provide drivers with a voice in addressing issues such as unfair deactivation from apps and declining wages.
Uber and Lyft initially opposed the bill but have since expressed support, with Uber’s head of public policy for California, Ramona Prieto, stating that the bills “represent a compromise that lowers costs for riders while creating stronger voices for drivers” (Los Angeles Times).
While the agreement marks progress, some concerns remain. Critics argue that the bill lacks protections for drivers who protest or strike and does not require companies to provide wage data. Despite these concerns, the legislation is seen as a step forward in empowering gig workers in California.
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