California Strikes a Deal with Uber and Lyft for Driver Unions
In Southern California, I’m Carolann Duro for Land and Labor Radio.
California lawmakers and ridesharing companies, Uber and Lyft, reached an agreement in August to allow drivers to form unions. Rideshare companies have long been criticized for their structure of independent contracting.
This structure allowed companies to minimize expenses such as payroll taxes, health insurance, car maintenance, insurance, social security, and other benefits.
Some drivers see this independent contracting as beneficial, allowing flexible hours and control over their employment. While others desire changes to allow for more protections and benefits.
This new agreement, hailed by Govenor Gavin Newsome, is considered a huge victory for the labor movement.
David Green, Executive Director for SEIU Local 721,points to the efforts made to pass the deal , “And as a Labor Movement, we know that progress doesn’t come from tech companies or politicians alone, it comes from workers standing united wanting more.”
The deal opens a path to collective bargaining for drivers. Uber and Lyft spent several expensive years fighting against this very result.
Drivers will be able to organize for more benefits and increased pay. To incentivise rideshare companies, California lawmakers promised to create legislation that would diminish insurance costs.
AB1340 is authored by Democratic state assembly members Buffy Wicks and Marc Berman. Wicks serves for the 14th district, which includes countries of Alameda and Contra Costa, while Berman serves San Mateo and Santa Clara counties.
Wicks gathered with organizers in Sacramento, “to fight for better wages, to fight for healthcare, to fight for paid leave,”
Their plans are to diminish the minimum insurance requirements to $60,000 per person and $300,000 per incident.
In a statement for lyft, spokesperson stated that this deal is a major victory for both riders and drivers in California.
For Land and Labor radio, Im Carolann Duro.
