Uber and Lyft drivers can unionize under new law signed by Newsom. How does it work?
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Uber and Lyft drivers can unionize under new law signed by Newsom. How does it work?
"Gov. Gavin Newsom on Friday signed into law a deal that will allow hundreds of thousands of rideshare drivers to unionize and bargain collectively while still being classified as independent contractors. The legislation - a rare compromise between labor groups and Silicon Valley gig economy companies - grants collective bargaining rights to Uber and Lyft drivers, and follows years of political and legal battles over the job status of rideshare and delivery drivers."
"Labor leaders from Service Employees International Union California, a powerful union that has been working for years to organize app-based drivers, say the deal is one of the largest expansions of private sector unions in 90 years, allowing hundreds of thousands of California gig drivers to gain a seat at the bargaining table. It does so by exempting workers from the state and federal antitrust laws that normally prohibit collective action by independent contractors."
"Newsom, with his signing of the deal, drew a contrast with Trump's posture towards workers and labor unions, with his administration banning collective bargaining at half a dozen federal agencies earlier this year. "Donald Trump is holding the government hostage and stripping away worker protections. In California, we're doing the opposite: proving government can deliver," Newsom said in a statement. "That's the difference between chaos and competence.""
Governor Gavin Newsom signed a law permitting hundreds of thousands of Uber and Lyft drivers to unionize and bargain collectively while retaining independent contractor classification. The legislation is a compromise between labor groups and gig economy companies and specifically grants collective bargaining rights to rideshare drivers, excluding app-based food delivery workers. An additional law backed by Uber and Lyft is expected to reduce the companies' insurance requirements. The measure exempts participating drivers from state and federal antitrust laws that normally bar collective action by independent contractors, and SEIU California calls it a major private-sector union expansion.
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