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Until now, carpool drivers had fallen into a realm of work, qualified as independent contractors by the National Labor Relations Board, and therefore had no right to a protected union activity. Organizing efforts have become bogged down in a multitude of court decisions and confusion over federal laws and preemptions. A Seattle law allowing carpooling drivers to form a union was overturned by a Federal Court ruling that only states could grant such a right to independent contractors.
This appears to offer California the opportunity to put in place a mechanism for drivers to unionize under the auspices of a state labor council, which could be extended to oversee union activities. other workers excluded from federal jurisdiction. Carpool Driver Organizations, encouraged by their success in helping to lobby for the California Bill, will pursue this goal.
The rideshare companies will continue to fight against the California measure, which they say would paralyze their business model. Barclays estimated that being compliant next year would cost Uber $ 507 million and Lyft $ 290 million. Uber, who insists that his drivers are not qualified as employees, said it would force them to apply for employment status individually. Uber, Lyft and DoorDash, the food delivery service, together committed US $ 90 million to fund a 2020 ballot initiative to cancel the law, a quest that would face dubious prospects.
Business offers to increase driver benefits and some contributions have all been dismissed as insufficient, but Governor Newsom has m said even after signing the bill, it will continue to try to find a compromise that can create a third category of workers – not employees, but self-employed workers with certain rights and opposable benefits.
All scenarios suggest rethinking the role of the state in protecting workers' rights and economic security, thus accelerating the change that has been taking place for years. As union membership declined, governments – particularly California – were the mechanism to provide social benefits, including a higher minimum wage, access to affordable health care, and portable pension plans.
Uber, who has recorded huge losses and fired hundreds of workers in recent weeks, warned that the California measure would have far-reaching repercussions. A coalition of worker groups in New York has already proposed a bill inspired by the bill, and Governor Andrew Cuomo has expressed his support, saying he "does not like being left behind by report to California ".
Ultimately, whatever its form, Uber survives the changing landscape, perhaps serving as a vehicle for new models of labor legislation for the twenty-first century.
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