Drivers of ride apps like Uber and Lyft will soon have the right to incorporate unions into California as independent contractors in California thanks to a bill signed by Gov. Gavin Newsom on Friday.
This is part of a large transaction between lawmakers, unions and ride companies, resulting in the passage of separate bills in favour of Uber and Lyft’s lower insurance requirements, along with driver union rights. When the deal was first announced in August, Newsom described it as “a historic agreement between workers and businesses that only California can provide.”
The Associated Press reports that more than 800,000 drivers will join the union and will acquire the right to negotiate collectively for better wages and benefits. Ramona Prieto, head of public policy for Uber in California, told the Associated Press in a statement that the two bills “represent a compromise that reduces rider costs while generating stronger voices for drivers.”
Massachusetts voters granted the right to organize ride drivers last fall and passed a voting measure.
