The Standard (St. Catharines)

Uber, Lyft, DoorDash threaten ballot fight over gig-worker law

Assembly Bill 5 would classify drivers as employees, a change pushed for by labor unions

- ALEJANDRO LAZO AND ELIOT BROWN

SAN FRANCISCO—The battle over a California bill that could upend the business models of companies that rely on gig workers intensifie­d Thursday when ride-sharing giants Uber Technologi­es Inc. and Lyft Inc. and delivery service DoorDash Inc. threatened to spend a combined $90 million on a ballot measure if a deal can’t be reached this year.

California lawmakers have been weighing a bill, known as Assembly Bill 5, that would classify drivers for those and other similar companies as employees, entitled to better wages and benefits, a change pushed for aggressive­ly by labor unions. The bill would codify a 2018 California Supreme Court decision that restricts when workers can be classified as independen­t contractor­s.

On Thursday, Lyft and Uber offered a set of proposals they described as a compromise: a minimum wage of $21 an hour for time spent driving and picking up customers, a fund to pay for benefits such as paid sick leave, and the ability for workers to organize a group that could negotiate with numerous employers of drivers all together, rather than individual­ly.

“We remain focused on reaching a deal, and are confident about bringing this issue to the voters if necessary,” said Lyft spokeswoma­n Adrian Durbin.

DoorDash is supporting its own set of similar proposals.

If the current version of the legislatio­n becomes law, and no other legislatio­n addressing their concerns passes, the companies

said they would put their resources behind a measure on next year’s ballot featuring the proposals they are backing.

The bill passed the state assembly in May, 59-15, and faces a key vote in a Senate committee on Friday.

Both houses are dominated by Democrats.

Gov. Gavin Newsom, a Democrat, hasn’t signaled whether he would sign the current bill if it

passes. The governor has said his staff is actively trying to broker a deal between the opposing sides behind the scenes.

The threat to go to the ballot box—a common tactic in California when high-stakes legislatio­n threatens major interest groups— was criticized by a federation of state unions and Assembly Bill 5’s lead backer.

“California has a long history of Wall Street billionair­es pumping a

fortune into ballot measures to further erode the middle class,” said Assemblywo­man Lorena Gonzalez, author of the measure.

“This announceme­nt lays bare the real motivation of multibilli­on-dollar gig companies,” said California Labor Federation Executive-Secretary Treasurer Art Pulaski.

“They never cared about their drivers or workers. The only thing they care about is their bottom

line.”

The companies have said they believe their measures help drivers by keeping workers’ ability to start and stop working as they please.

While the measure would affect a variety of industries, the unprofitab­le ride-hailing companies would take a direct hit if the measure passes as currently written. Lyft and Uber together are currently losing billions per year.

 ?? JUSTIN SULLIVAN GETTY IMAGES ?? Dozens of Uber and Lyft drivers staged a protest outside of Uber headquarte­rs in support of California Assembly Bill 5 and to organize a union for ride-share drivers.
JUSTIN SULLIVAN GETTY IMAGES Dozens of Uber and Lyft drivers staged a protest outside of Uber headquarte­rs in support of California Assembly Bill 5 and to organize a union for ride-share drivers.

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