California Democrats Push for Gig Workers to Form Unions Amid Uber Pushback
TL/DR –
California Democrats, backed by the state’s Service Employees International Union, have proposed legislation to allow gig workers to form unions. The proposal allows drivers to negotiate with companies like Uber and Lyft for better pay and benefits, with more than 600,000 ride-hail drivers statewide expected to benefit if the legislation is passed. However, the proposal has met with opposition from Uber and Lyft, which argue that the new legislation would increase ride costs and threaten flexible job opportunities.
California Democrats Advocate for Gig Worker Unionization
California Democrats are rallying behind a legislative proposal that would enable gig workers to form unions, an initiative likely to face significant resistance from companies like Uber, Lyft, and Doordash.
California’s Service Employees International Union is supporting Democratic lawmakers in their introduction of a measure that would allow drivers to negotiate with companies like Uber and Lyft for improved pay and benefits. This is viewed as a move towards stronger protections for gig workers.
The SEIU estimates over 600,000 ride-hail drivers statewide would benefit if the legislation is ratified and signed into law. However, Uber argues that the proposed legislation threatens the flexible jobs thousands rely on, and could make rides in California more expensive.
Lyft spokesperson CJ Macklin declined to disclose the company’s stance on the measure, but indicated that Proposition 22, approved by voters in 2020, reflected voters’ will and that the company is striving to “improve drivers’ experience.”
The effort for worker unionization mirrors a voter-approved ballot measure in Massachusetts, the first state to give app-based drivers the right to collective bargaining.
Uber and Lyft’s Labor Battle Victories
In California, rideshare companies successfully blocked an earlier attempt to recognize gig workers as employees nearly five years ago. A state law, known as AB 5, would likely have entitled these workers to unemployment benefits, minimum wage and more, but was opposed by the gig companies.
The companies spent over $200 million on Prop. 22, a ballot measure that maintains gig workers as independent contractors while also promising better benefits. After its passage, gig companies raised their prices.
Gig workers’ wage and benefits complaints remain unresolved as no state agency has been enforcing Prop. 22 since it came into effect.
The proposal is set to be heard in Assembly committees in the coming weeks.
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