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How California Reached a Union Deal With Tech Giants Uber and Lyft (politico.com) 15

An anonymous reader quotes a report from Politico: In roughly six weeks, three California Democrats, a labor head and two ride-hailing leaders managed to pull off what would have been unthinkable just one year prior: striking a deal between labor unions and their longtime foes, tech giants Uber and Lyft. California lawmakers announced the agreement in late August, paving a path for ride-hailing drivers to unionize as labor wanted, in exchange for the state drastically reducing expensive insurance coverage mandates protested by the companies. It earned rare public support from Gov. Gavin Newsom and received final approval from state lawmakers this week.

The swift speed of the negotiating underscores what was at risk: the prospect of yet another nine-figure ballot measure campaign or lengthy court battle between two deeply entrenched sides, according to interviews with five people involved in the talks. Their accounts shed new light on how the deal came together: how the talks started, who was in the room, and the lengths they went to in order to turn around such a quick proposal -- from taking video meetings while recovering from surgery to the unexpected aid of one lawmaker's newborn baby.

"This was really quite fast," said Ramona Prieto, Uber's chief policy expert in Sacramento. "It wasn't like this was months of negotiating." The landmark proposal is only the second time a state has reached such a framework for Uber and Lyft drivers, after Massachusetts did so in 2024. And unlike Massachusetts, it came together without reverting to a ballot fight. California already saw its most expensive ballot measure effort to date in 2020, when Uber and Lyft spent more than $200 million backing an initiative to bar app-based workers from being classified as traditional employees, known as Proposition 22. Its passage sparked a legal challenge from labor leaders that wasn't resolved until July 2024, when California's Supreme Court affirmed the ballot measure's constitutionality. [...]

But the compromise still faces hurdles ahead. A recent lawsuit has raised fresh scrutiny of how the deal came together and what truly motivated it. Further criticism from those left out of the negotiating room is putting dealmakers on the defense as they try to sell it more widely. Plus, the final deal isn't what some labor leaders hoped when they first set out to strengthen drivers' rights in 2019. [...] And while the deal allows gig workers to unionize, that doesn't guarantee the necessary 10 percent of the state's 800,000 ride-hailing drivers actually will. Many who drive for Uber and Lyft do so part-time, and labor leaders acknowledge the challenge of organizing a disparate population that doesn't have a space to meet one another.

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How California Reached a Union Deal With Tech Giants Uber and Lyft

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  • I'm not sure what the unions actually gained. Suppose some drivers did want to unionize. What prevents others from joining the platform and undercutting them without joining or from Uber/Lyft from doing what they should have from the beginning and let each individual driver set their own rate and letting the market decide what a ride should cost.
    • by DrMrLordX ( 559371 ) on Monday September 15, 2025 @08:22PM (#65662202)

      Usually when unions cut a deal for a workplace that can have non-union employees or contractors working in the same positions, they have provisions in their contracts to standardize rates or pay so that the union can't be pushed out so easily.

  • labor leaders acknowledge the challenge of organizing a disparate population that doesn't have a space to meet one another.

    Maybe they could use the internet or something.

  • by ffkom ( 3519199 ) on Monday September 15, 2025 @06:44PM (#65662034)
    I guess the "Tech Giant" side agreed because they expect the time period where this may have any relevance as pretty short, anyway. While truly "autonomous" cars are not quite covering the service, yet, a combination of "automatically driven in many places" with "remote controlled by the cheapest of workers somewhere on earth" will be able to substitute local human drivers soon. And depending on how much time those cars spend under conditions that are easy to automate driving in, on of those remote driving workers will have to control 3 or 10 or 20 such cars.
    • A fundamental problem with "remote controlled by the cheapest of workers somewhere on earth" is latency. Just considering network latency, you're looking at hundreds of milliseconds of round trip time if you try to have (for example) people in India remote controlling a vehicle in America.

      That might be fine for high level executive directions for an AI system, but it isn't going to work if you want them to actually take over and drive the vehicle. The latter really needs someone probably within a few hund

      • by ffkom ( 3519199 )
        I think there will be "mid-level executive directions" from remote, like the remote worker assessing a construction site situation, determining what path to take, while the local computer will still react upon sensor input fast enough to not run someone over or bump into another car. That way, in only the most seldom situations, a less-cheap-more-near remote driver needs to be assigned for a short while.
  • But they had a ton of money, so fuck all the taxi drivers.

    Meanwhile, the California CTA union supports antisemitism, so my wife just quit that shit.

    Fuck unions. Useless and evil half the time, and ineffective the other half. Hey, workers, fuck your rights. They go right in the shitter.

    • But they had a ton of money, so fuck all the taxi drivers.

      Of all the times I've taken a taxi, I don't recall once ever wishing there wasn't a driver in the car.
  • So who covers the riders insurance needs when the crash happens? Seems like everyone had a say except the customers.
  • What tech? Phone apps for calling privately run taxi-type service drivers.

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