Uber and Lyft drivers rally for batter pay and working conditions at Austin-Bergstrom International Airport in Austin, Wednesday. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine's Day, calling for higher pay and other changes to their working conditions.
Sacramento, California – After years of battling gig companies, California labor unions are once again aiming to expand workers’ rights—this time by pushing to allow ride-hailing drivers to unionize. In a move that could significantly alter the landscape for gig workers, California’s Service Employees International Union (SEIU) is backing a new legislative effort to grant ride-hailing drivers the right to collectively bargain for better wages and benefits.
Democratic lawmakers, led by Assemblymember Buffy Wicks of Oakland, unveiled Assembly Bill 1340 on Tuesday. The bill would provide an avenue for drivers working for companies like Uber and Lyft to negotiate for improved pay and working conditions.
“We stand for the principles that all work has dignity,” said Wicks at a press conference. “We stand for the right of every worker to truly have a voice.” The SEIU estimates that more than 600,000 ride-hailing drivers across California could benefit from the legislation if it passes.
However, the push for unionization faces strong opposition from gig companies. In a statement, Uber warned that the proposed legislation would drive up ride prices in California while undermining the flexible work arrangements that many drivers rely on. “Drivers have been clear: They want to stay independent and keep the freedom to choose when and how they work, with access to meaningful benefits,” the company said.
Lyft has not taken a formal position on the bill but emphasized that voters approved Proposition 22 in 2020, reflecting their preference for keeping gig workers as independent contractors. The company has promised to focus on improving drivers’ experiences, a sentiment echoed by its spokesperson, CJ Macklin.
This new effort mirrors a similar move in Massachusetts, which became the first state to grant app-based drivers the right to collective bargaining. In California, the push for unionization comes nearly five years after rideshare companies successfully blocked an attempt to reclassify gig workers as employees, which would have entitled them to benefits like unemployment compensation and minimum wage.
The fight for gig workers’ rights gained significant attention with the passage of AB 5 in 2020, a state law that would have required companies to treat gig workers as employees. However, the gig industry poured over $200 million into supporting Prop. 22, which was approved by voters the same year, allowing companies to maintain their independent contractor model while offering some benefits. But with little enforcement of Prop. 22, many gig workers argue that it has not delivered on its promises of better pay and benefits.
Lorena Gonzalez Fletcher, president of the California Labor Federation, acknowledged that the new measure was a compromise. “We think the right to collectively bargain around a number of issues as independent contractors is far superior to nothing,” she said. However, she also pointed out that the new bill falls short of the original intent to grant workers full employee status.
Some drivers are calling for stronger protections, including a higher wage floor and more explicit protections for workers’ right to strike. Nicole Moore, president of Rideshare Drivers United, criticized Prop. 22’s wage floor, calling it a “wage dungeon” rather than a floor. She urged lawmakers to ensure the new bill sets a higher standard for pay.
The proposal is expected to be heard in Assembly committees in the coming weeks.
