WHAT THE BILL WOULD DO

By Levi Sumagaysay

Assembly Bill 1340 by Assemblymember Buffy Wicks, a Democrat from Oakland, would allow ride-hailing drivers to unionize. Uber and Lyft consider drivers independent contractors, and this bill would make California the second state in the nation to give drivers the right to bargain with the companies. On the Assembly floor right before the bill was approved, Wicks said gig workers lobbied elected officials “so that they can have a seat at the table to fight for paid leave, to fight for higher pay, to fight for safety and all the other things that they deserve.” 

WHO SUPPORTS IT

The Service Employees International Union sponsored the legislation, but at least one other drivers group and labor experts say that last-minute amendments made to the bill would make it tough for any other union but the SEIU to be chosen to represent drivers. 

Gov. Gavin Newsom, Senate President Pro Tem Mike McGuire and Assembly Speaker Robert Rivas in late August announced a deal tying the unionization legislation to SB 371, an industry-sponsored bill that would lower insurance coverage requirements for ride-hailing. 

WHO IS OPPOSED

The ride-hailing industry dropped its opposition after the deal tying it to their insurance legislation. But Uber called the deal a “compromise,” and Lyft has not explicitly supported the unionization bill. 

Rideshare Drivers United, a Los Angeles-based drivers group that has organized drivers for years, supported the bill at first. But the group’s president, Nicole Moore, said she was “outraged” when she realized the amendments essentially guarantee her group wouldn’t qualify to represent drivers because of its lack of experience in negotiating bargaining agreements.

Republican lawmakers spoke against the bill as it made its way through the Legislature, saying it goes against the spirit of Proposition 22, an industry-backed ballot proposition that became law and enshrined app-based gig workers’ independent contractor status.

WHY IT MATTERS

If the state’s about 800,000 ride-hailing drivers vote to form a union, it would give them the ability to bring longstanding complaints about wages, benefits, deactivations and other issues to the bargaining table. The bill also includes requirements for Uber and Lyft to disclose more information about drivers and rides, data that experts say would increase transparency around the ride-hailing industry.

GOVERNOR’S CALL ✅