"Uber Technologies Inc. and Lyft Inc. agreed to back a state-supervised way for California drivers to unionize and collectively bargain on industry-wide pay and benefit guarantees, under a new legislative deal that provides the companies relief on insurance costs.

Legislative leaders and Gov. Gavin Newsom (D) on Friday announced support for a pact that includes passing a driver bargaining bill (AB 1340) as well as the rideshare industry-backed SB 371, which lowers the amount of uninsured motorist insurance the state requires the companies to carry for drivers. The Service Employees International Union sponsored AB 1340.

The bargaining bill is similar to a ballot measure Massachusetts voters passed in November. Some states have turned their attention to securing bargaining rights for drivers while fights persist in courts and legislatures over ride-hail drivers’ classification, pay, job protections, and benefits.

State-level agreements create a model for drivers to organize and negotiate a labor contract outside the federally supervised union rights provided by the National Labor Relations Act, which doesn’t cover them since they’re classified as independent contractors instead of employees....”

 

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This article was originally published in Bloomberg Law.