Uber, Lyft Drop Opposition to California Driver Union Bill

(Bloomberg) -Uber Technologies Inc. and Lyft Inc., California drivers agreed to unionizing and collectively negotiate and collective bargaining within the scope of a new legislative agreement that provides unionization and insurance costs to get rid of insurance costs.
Legislative Leaders and Gov. Gavin Newsom (D) announced on Friday to pass a driver’s bargaining invoice (EU 1340), as well as support for an agreement with the Rideshare industry supported SB 371, which reduces the amount of uninsured driver insurance that requires companies to carry for drivers. Service employees sponsored the EU 1340 in the International Union.
The bargaining bill is similar to the ballot of the Massachusetts voters in November. While some states direct their attention to the assurance of bargaining rights for drivers, fights continue in courts and legislative organs on the classification of drivers, payment, work protection and benefits.
The state -level agreements create a model for arranging and negotiating a employment contract other than federal -controlled trade union rights, which covers them as they are classified as independent contractor instead of employees.
The EU 1340 will not change the legal status of concert drivers as independent contradictions in California, approved by voters with 2020 industrial -supported voting precautionary measures.
The new legislature package, Seıu Local 721 President David Green, told reporters in a press call on Friday, and will give an organized and bargaining vehicle to approximately 800,000 drivers representing the largest expansion of the private sector collective bargaining in California history ”.
Lyft and Uber, reduced insurance requirements will increase the purchase for riders, he said. Uber said that insurance costs are about one -third of the total wages across the state and up to 45% in Los Angeles, and the need for uninsured driver covering the requirement is a significant portion of the total cost.
Uber has created priority to pushing the state -level insurance reform, and this year accused lawyers and medical providers of making fraudulent insurance claims.
“We are pleased to see Sacramento’s need for Sacramento to make California more affordable in California, Ramona, President of Uber’s California Public Policy, said.
“This agreement is a great victory for both riders and drivers in California, Ly said Lyft’s Public Policy Director Nick Johnson.
With the help ofandrew Oxford and Dana Wollman.
(In addition to the comments of Seıu, Uber and Lyft, it was updated with additional reports.)
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