California’s legislators have hit an agreement with Uber and Lyft that will allow applications based on trade unions and could make rides with Ride-Hail more affordable.
The agreement is a victory for concert workers who have long been classified as independent contractors and are therefore not eligible for certain protections received by employees, such as the right of collective bargaining.
Governor Gavin Newsom, along with Senate President Pro Tem Mike McGuire and Assembly speaker Robert Rivas, announced Friday’s support for two legislation that constitute a course for applications based on trade unionists. The Bill Assembly 1340 is funded by Seiu California and the Senate Bill 371 is funded by Uber and Lyft.
Newsom described it as “historical agreement between employees and businesses that California could only deliver”. He said work representatives and companies “found in common ground that will authorize hundreds of thousands of drivers, while making Rideshare more accessible for millions of California”.
The deal creates a model for drivers to be able to organize for increased pay, job protection and other benefits.
In return, California regulators say they will support the legislation to reduce the costly insurance coverage that companies that will lead to driving. Uber and Lyft have paid these insurance payments to higher fare in California and a lower driver pay.
“With Sacramento aligned now for the need to make Rideshare more accessible to California, we are pleased to see these two important legislative elements that are moving together,” Ramona Prieto, head of Uber’s public policy on California, said in a statement.
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The deal comes years after Uber, Lyft and other applications -based concert companies spent more than $ 200 million to persuade California voters to cross the prop 22, who classify concerts as independent contractors while granting them limited benefits.
Drivers have long criticized the system for providing widespread remuneration and deactivations, letting them limited power to influence profits or working conditions. Supporters of the new agreement say it could give drivers a stronger voice to the push behind unfair treatment.
“Like many immigrants, driving for concert companies was my main source of income,” said Margarita Peñalosa, a driver from Los Angeles and a member of the Union Workers Workers California. “Some drivers are afraid to turn off and lose their jobs, so we often feel pressured to remain silent instead of demanding fair treatment.
The agreement could have a ripple effects on other states. In 2024, Massachusetts voters were approved A similar initiative that allows drivers to format the unions and negotiate pay, benefits and working conditions.
This article was updated with a statement by Uber and a Uber driver.
