Uber, Lyft leaves opposition to California Manager Union Bill

(Bloomberg) -Uber Technologies Inc. and Lyft Inc. agreed to support a state-endow manner for California managers to unite and jointly negotiate industry guarantees for the industry, under a new legislative agreement that provides businesses with insurance costs. Legislative leaders and Governor Gavin Newsom (d) announced support on Friday for an agreement that includes the pass of a driver of the power negotiation (AB 1340), as well as the Rideshare industry-supported SB 371, which should be reduced the amount of unsecured motor insurance that the state requires. The service employees International Union sponsored AB 1340. The bargaining bill is similar to a ballot that Massachusetts approved in November. Some states have focused on obtaining bargaining rights for managers, while fighting continues in courts and legislators on the classification, payment, work protection and benefits of the ride hail managers. State level agreements create a model for managers to organize and negotiate a labor contract outside the Federally Sublighed Union Rights offered by the National Labor Relationship Act, which they do not cover as they are classified as independent contractors instead of employees. AB 1340 will not change the legal status of GIG drivers as independent California contractors, which have approved voters by the 2020 return ball. Prop 22. The new legislative package will give about 800,000 drivers a way to organize and negotiate, which “represents the largest expansion of the private sector’s collective amount in California,” David Green, president of the SEI-Local 721, to a press call in a press call. Body and Uber said the reduced insurance requirement would improve affordability for riders. Uber said that insurance costs make up about a third of the total rates nationwide, and as high as 45% in Los Angeles, with the unsecured motorist cover requirement a significant part of the total cost. Uber has made a priority to print at the state level for insurance reform, and this year has filed three lawsuits in which they accuse advocates and medical suppliers of sustaining fraudulent insurance claims that, according to the company, cost millions of legal costs. “With Sacramento now corresponding to the need to make Rideshare more affordable in California, we are pleased to see that these two important legislation is moving forward together,” says Ramona Prieto, Uber’s California Public Policy Head of Public Policy. “This agreement is a big win for both riders and drivers in California,” Nick Johnson, body’s director of public policy, said in a statement. -With help from Andrew Oxford and Dana Wollman. (Updated with comments from Seiu, Uber and Lyft, as well as additional reporting throughout.) More stories like these are available on Bloomberg.com © 2025 Bloomberg MP