Creating unions among rideshare drivers is crucial so they could gain collective power for bargaining, secure fair compensations and benefits, achieve better working conditions, and gain a “worker” status instead of being just classified as independent contractors.
These unions provide a unified voice for workers, so they could negotiate with ridesharing companies and establish industry-wide standards, more so ensure fundamental rights like holiday compensation, breaks, and a formal dispute resolution mechanism are present.
But, it is difficult for drivers to form unions. According to Google’s evaluation, this is a challenge since these drivers, under the law, are classified as independent contractors, rather than workers. Thus, they are not covered by the law to form unions and organize, just like traditional workers. This status, coupled with the fleeting and often isolating nature of the ridesharing job, makes it difficult to build the widespread, sustained organizing efforts needed to form unions and effectively bargain.
Nevertheless, in California, lawmakers before the weekend reached agreements with Lyft and Uber that their drivers in the state will already be allowed to unionize, a victory for organized labor that could set the groundwork and inspiration for several efforts in other states.
Thank you to Governor Gavin Newsom, the deal is bringing Lyft and Uber on board with a vivid pathway to collective bargaining rights for their drivers. This, after sending so many years and so much money fighting the idea. In California, ridesharing drivers are classified as independent contractors.
“This is a historic agreement between workers and business that only California could deliver,” Governor Newsom told Ridesharing Forum. “Labor and industry sat down together, worked through their differences, and found common ground that will empower hundreds of thousands of drivers while making rideshare more affordable for millions of Californians.”
Under this agreement, rideshare drivers in California will take the opportunity to organize for increased pay and more benefits. In return, California’s authorities will support legislation that would drastically reduce the pricey insurance coverage mandates borne by ridesharing companies. In here, Uber and Lyft are saying there are inflates, unfair fares in California, engulfing the income that drivers get.
Other government workers are seconding the governor, such as Senate Pro Tem Mike McGuire, who said, “[This, a] big damn deal, uplifting workers and the Golden State’s economy.”
Those who have been working to fight for this milestone decision have also issued statements, with some saying, “Gig workers have been fighting, organizing, and advocating for years, because for too long, the industry’s giants have handed workers a raw deal: you do all the work and take all the risks, while corporations make all the decisions and reap the lion’s share of the rewards,” while others commented on this tremendous success, “I think everyone came to the table, right? But I think that’s because of the pressure created by workers.”
However, it remains that the fares from Lyft and Uber in California state are still higher compared to those in other states.