Uber drivers can now form a union in California
What's the story
California Governor Gavin Newsom and state lawmakers have reached a landmark agreement with rideshare giants Uber and Lyft. The deal will allow over 800,000 drivers in the state to form unions and negotiate collectively for improved wages and benefits. The legislative package combines a collective bargaining bill with an insurance measure that reduces the companies' insurance requirements for accidents involving underinsured drivers, likely lowering their costs.
Compromise
Major compromise in labor unions, tech companies conflict
The agreement is a major compromise in the long-standing conflict between labor unions and tech firms. It comes after a California Supreme Court ruling last July that allowed app-based ride-hailing and delivery services, to continue classifying their drivers as independent contractors without benefits like overtime pay, paid sick leave, and unemployment insurance. The collective bargaining bill would let these workers join a union while still being classified as independent contractors.
Unionization impact
Deal needs to be passed by Senate, Assembly
David Green, President of SEIU Local 721, hailed the agreement as the "largest expansion of private sector collective bargaining in California history." The deal still needs to be passed by the Senate and Assembly within two weeks before being signed into law by Newsom. The move comes as rideshare drivers have long complained about issues like being "deactivated" from apps without explanation or fair appeals process after passenger complaints.
Driver perspectives
Unionization will give drivers a voice to address issues
Margarita Penazola, a driver and member of the California Gig Workers Union advocacy group, said unionization would give drivers a voice to address their issues. Another driver, Mike Robinson, shared his experience of declining pay over the years and lack of health insurance when he was diagnosed with cancer in 2023. He stressed the need for bargaining power for fair pay and basic protections.