California Grants Ride-Hailing Drivers Union Rights in Historic Law
In a significant shift, California's Governor Gavin Newsom has signed a new law granting over 800,000 ride-hailing drivers in the state the right to join a union and collectively bargain for better wages and benefits. This move comes after years of heated debate between labor unions and tech companies like Uber and Lyft.
The new law, part of an agreement between Newsom, state lawmakers, the Service Employees International Union, and rideshare companies, allows drivers to unionize while retaining their independent contractor status. It also mandates that gig companies bargain in good faith with their drivers.
Drivers in California are no strangers to the unionization battle. A 2019 law that would have provided them with benefits was reversed at the ballot in 2020. Now, with this new law, drivers can collectively negotiate their terms of work.
Rideshare Drivers United, an advocacy group, has praised the law but argues that it doesn't guarantee fair contracts. They urge companies to report pay data to the state to ensure transparency.
California is now the second state where Uber and Lyft drivers can unionize. The first was New York in 2021.
In exchange for these rights, Newsom also signed a measure reducing insurance requirements for underinsured driver accidents. This reduction is expected to save Uber around $200 million and potentially help lower fares in the state.
The new law in California is a significant compromise in the ongoing struggle between labor unions and tech companies. It grants drivers the right to unionize and collectively bargain while also reducing insurance costs for companies. Time will tell how these changes impact drivers' wages, benefits, and fares for passengers.
