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#Governance
TechCrunch
TechCrunch
1M ago 19 views

Newsom signs bill giving Uber and Lyft drivers in California the right to unionize

California drivers for Uber and Lyft will gain the right to unionize following a bill signed by Governor Gavin Newsom, impacting over 800,000 workers.
Newsom signs bill giving Uber and Lyft drivers in California the right to unionize
A What happened
In a significant development for gig economy workers, California Governor Gavin Newsom has signed a bill granting Uber and Lyft drivers the right to unionize as independent contractors. This legislation is part of a larger compromise between lawmakers, unions, and ride-hailing companies, which also includes provisions for reduced insurance requirements for these services. Newsom characterized the agreement as historic, emphasizing its potential to enhance the bargaining power of drivers. With this new law, more than 800,000 drivers will be able to join unions and negotiate collectively for improved wages and benefits. The head of public policy for Uber in California noted that the bills represent a balanced approach, aiming to lower costs for riders while amplifying drivers' voices.

Key insights

  • 1

    Historic Agreement

    The bill is seen as a landmark deal between workers and businesses.

  • 2

    Empowerment of Drivers

    Over 800,000 drivers will gain collective bargaining rights.

  • 3

    Insurance Requirements

    The legislation also includes lower insurance requirements for ride-hailing services.

Takeaways

This legislation marks a pivotal moment for gig economy workers in California.