A new bill introduced by California lawmakers on Tuesday could allow rideshare drivers for companies like Uber and Lyft to unionize while remaining classified as independent contractors. Assembly Bill 1340, proposed by Assemblymembers Buffy Wicks and Marc Berman, seeks to empower drivers to negotiate pay and working conditions, exempting them from state and federal antitrust laws that currently prohibit such actions.
The legislation, known as the Transportation Network Company Drivers Labor Relations Act, marks the first significant proposal to alter the ride-hailing industry since the California Supreme Court upheld Proposition 22 last year. Proposition 22, approved by voters in 2020, maintained drivers’ status as independent contractors while offering some benefits like healthcare stipends and mileage reimbursement.
Wicks emphasized the importance of giving drivers a voice, stating, “We stand for the right of every worker to truly have a voice.” However, the bill does not include food delivery drivers, and many details still need to be finalized during the legislative process.
The proposal has sparked opposition from Uber and Lyft, with company representatives arguing that it could increase costs for consumers and contradict the preferences of voters who supported Proposition 22. “At a time when families’ budgets in California are stretched to the max, this proposal would make trips even more expensive,” said Uber spokesperson Zahid Arab.
Despite the opposition, labor organizers estimate that approximately 600,000 ride-hailing drivers in California could benefit from the legislation. According to SEIU California, 40,000 drivers have expressed interest in joining a union. Nick Calabar Jr., a driver for Uber and Lyft, hopes the bill will lead to better pay and working conditions, stating, “It’s about getting companies to treat us as human beings, finally.”
The bill is similar to initiatives in other states, such as Massachusetts and Minnesota, where efforts to unionize rideshare drivers are underway. If approved, the legislation could face legal challenges from ride-hailing companies, but proponents argue it aligns with California’s values of ensuring drivers receive the rights they deserve.
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