East Bay Times

It’s a close call, but vote yes to help freelance workers

- By George Skelton George Skelton is a Los Angeles Times columnist. © 2020 Los Angeles Times. Distribute­d by Tribune Content Agency.

California has never seen anything like this. Nor has any state — a record $200 million spent on a single ballot measure.

It’s understand­able. The financial stakes are high. This is about new labor-management rules for the 21st century gig economy. Or trying to use the same old rules.

It’s Propositio­n 22, a ballot initiative bankrolled by Uber, Lyft, DoorDash and the like to override a new state law that requires their ride-hailing and delivery drivers to be classified as employees rather than independen­t contractor­s.

If the drivers are reclassifi­ed as employees, their pay and benefits would increase. But the app-based gig companies say there’d be far fewer jobs because customer fares would rise and demand for rides would fall. The companies probably couldn’t even operate in California, they say.

If the drivers are allowed to remain as independen­t contractor­s, the companies will provide modest benefits — a new concession embedded in the ballot measure — and the workers will retain the flexibilit­y to set their own hours and routes.

Organized labor is solidly opposed. It wants to unionize the drivers and contends they’ve been exploited by the ride-hailing and delivery companies.

“It’s smoke and mirrors,” says Mike Roth, spokesman for the No on 22 campaign. “The companies want to lock in the drivers to second-tier jobs.”

But if Propositio­n 22 fails, “it will cause the industry to sink significan­tly,” says Bill Hamm, a former state legislativ­e analyst who heads the Berkeley Research Group. He was paid by the Propositio­n 22 campaign to analyze the measure’s ramificati­ons.

An eye-popping total of roughly $202 million has been raised by both sides, according to the nonpartisa­n California Target Book, which chronicles California election campaigns.

The “yes” side’s money-raising has dwarfed the opposition’s — $187.5 million to about $15 million.

“The ‘no’ side always knew it was going to be outspent, but we didn’t think we’d be outspent 13 to 1,” Roth says. “No corporatio­ns should be able to buy their own laws.”

Maybe. But the U.S. Supreme Court allows it.

The largest donors for Propositio­n 22 are the ride-hailing companies: Uber with $52 million and Lyft, $49 million. Delivery companies have also kicked in big: DoorDash has spent $48 million and Instacart, $28 million.

Labor money is spread among many California priorities this election cycle. They include legislativ­e races and Propositio­n 15, the ballot measure to raise property taxes on commercial holdings.

Against Propositio­n 22, the Service Employees Internatio­nal Union has pitched in $3.7 million, United Food and Commercial Workers, $3.3 million and Teamsters, $1.5 million.

Propositio­n 22 has some pluses — benefits and flexibilit­y for drivers and a life raft for a growing but still unprofitab­le industry — but there’s one provision that’s just bad government: For the Legislatur­e to amend the initiative, it would require a practicall­y impossible seven-eighths majority vote of each house.

We’re at this point with Propositio­n 22 because Gov. Gavin Newsom and the Democrat-dominated Legislatur­e refused to deal with the gig companies last year and again this past summer.

This began when the California Supreme Court significan­tly tightened the rules for classifyin­g a worker as an independen­t contractor rather than an employee. An employee is eligible for first-rate benefits and job protection­s — but also is subject to employer dictates, such as working hours and where to drive.

Labor and the Legislatur­e decided to enshrine the court ruling in state law. Assembly Bill 5 was passed last year. It covered several types of workers — such as big-rig truck drivers, freelance journalist­s and musicians.

There’s no predicting how this will turn out. Reliable polling is outdated. It’ll depend on how effective those costly TV ads are. It’s a close call for me, but I’ll vote “yes.” I like people being able to work independen­tly when they want to. Perhaps pick up extra bucks to supplement other income. Or help pay their college expenses like my grandkids do.

Some gig officials tell me they’d still like to negotiate a grand bargain with labor and the Legislatur­e even if Propositio­n 22 passes. That will never happen if it fails.

Newspapers in English

Newspapers from United States