**Uber and Lyft Support New Unionization Bill for California Drivers**
California drivers for Uber and Lyft are set to gain new unionization rights under a recent legislative agreement aimed at enhancing their ability to collectively bargain for better pay and benefits. This deal, announced by legislative leaders and Governor Gavin Newsom, includes the passage of Assembly Bill 1340, which facilitates driver bargaining, alongside Senate Bill 371, which reduces the uninsured motorist insurance requirements for rideshare companies.
The Service Employees International Union (SEIU) sponsored AB 1340, which mirrors a successful ballot measure passed by Massachusetts voters in November. As various states explore ways to secure bargaining rights for gig economy workers, California’s new legislation offers a framework for drivers to organize and negotiate labor contracts, despite their classification as independent contractors under federal law.
While AB 1340 does not alter the legal status of gig drivers in California—maintained under the 2020 Proposition 22—this legislative package is expected to empower approximately 800,000 drivers, marking a significant expansion of private sector collective bargaining in the state’s history. David Green, president of SEIU Local 721, emphasized the importance of this development during a press call.
Both Uber and Lyft have expressed that the reduced insurance requirements will lead to more affordable rides for customers. Uber has indicated that insurance costs can account for up to 45% of fares in Los Angeles, making this reform a priority for the company. Uber has also initiated legal actions against alleged fraudulent insurance claims that have reportedly cost the company millions.
Ramona Prieto, Uber’s head of public policy for California, stated that the alignment in Sacramento to make rideshare services more affordable is a positive step forward. Similarly, Nick Johnson, Lyft’s director of public policy, hailed the agreement as a significant win for both drivers and riders in California.
In summary, this legislative agreement not only provides a pathway for drivers to negotiate better working conditions but also addresses the financial burdens associated with insurance costs, potentially transforming the rideshare landscape in California.
**FAQ**
**What is Assembly Bill 1340?**
Assembly Bill 1340 is a legislative measure that allows California drivers for rideshare companies like Uber and Lyft to unionize and collectively bargain for improved pay and benefits.
