On Wednesday, April 23, legislation to realize California rideshare drivers’ decade-long fight for a voice in improving their work conditions and shaping their industry cleared its first hurdle, receiving overwhelming support in the Assembly’s Committee on Labor. AB 1340 (Wicks, Berman) will give California’s more than 600,000 rideshare drivers the opportunity to form a union and negotiate with corporations like Uber and Lyft over their pay and working conditions.

“I learned quickly not to trust the promises made by rideshare companies,” said Patti Ybarra, an Uber driver for seven years. ”They said driving was a dream job, but for many of us trying to support families, over time, it’s started to become a nightmare. The pay has kept ticking down, and the percentage I was seeing per ride was getting smaller and smaller. The promise of flexible hours isn’t a reality when you have to drive all day and night just to eke out a minimal existence. With a voice in a union, a driver like me will have the opportunity to make gig jobs better jobs, with a fair share of the revenues Uber and Lyft produce off our labor.”

More than 600,000 drivers currently have no means to improve their pay and working conditions, and as more Californians turn to gig work, an even greater number are relying on Uber and Lyft as a primary mode of transportation.  AB 1340 would not only give drivers a choice to unite in a union for more power to fight for improved pay and working conditions, but also protect drivers from retaliation for organizing.

Rideshare drivers say a union would be beneficial for both drivers and riders. With a union, drivers would have the opportunity to sit down at the bargaining table with companies to demand greater transparency in fares for both drivers and riders.

Today, riders have no idea what share of their dollars actually makes it to drivers. 

“With the most anti-union White House in our lifetimes tearing down generations of worker protections and enforcement, California must empower drivers to grow their strength and deliver on what working people demand: fair wages, safe working conditions, and the opportunity to create a better life for our kids,” said SEIU 1021 President Theresa Rutherford. “AB 1340 is a critical part of a real agenda for working people. It will give workers more power and the ability to stand up for a fair share of the wealth they create.”

In 2020, Uber, Lyft, and other corporations spent a record $200 million to pass Prop 22 and maintain their drivers as independent contractors. Regardless, a court ruling determined that the legislature can authorize drivers to form a union to organize and negotiate with gig corporations for better pay and working conditions. In fact, given Prop 22, a union is the only way for them to do that.

AB 1340 comes on the heels of a historic rideshare driver victory in Massachusetts, where voters sided with drivers on a ballot measure allowing them to organize in a union.

This year, collective bargaining legislation for rideshare drivers has also been introduced in Minnesota.

In California, a growing movement of rideshare drivers is demanding a union, with 40,000 already signing up to take part in SEIU – California Gig Workers United.

“I am proud to stand up for drivers who, like all workers, deserve the chance to join a union and bargain for fair wages and benefits. AB 1340 empowers drivers to sit down at the table with rideshare companies to shape the future of the industry, something only a union can do. I’m confident this bill will strengthen the rideshare experience for riders and drivers alike,” said AB 1340 author Assemblymember Buffy Wicks (D-Oakland).

A union formed under AB 1340 would have the power to sit down with corporations like Uber and Lyft to address:  

•  Wage theft from drivers’ pay, including pocketing drivers’ tips.
• “Robo-firings” in which drivers are deactivated by algorithm, without recourse or a meaningful way to regain their livelihoods.
• Riders are paying higher prices but that doesn’t translate into higher pay for drivers. Instead many drivers report a decrease in their share of passenger fares.

“Rideshare drivers have transformed the way we move around our cities to the benefit of executives and shareholders – it’s past time we treat them with dignity and respect through fair wages and on the job protections,” said AB 1340 author Assemblymember Marc Berman (D-Menlo Park). “I’m proud to stand with these workers in their fight for a united voice to ensure rideshare companies can continue to thrive in our state while treating their workers just like we would expect any other company to treat their workers – with respect for the services they provide.”

AB 1340 now moves to appropriations for a vote, and if passed, to a floor vote by the Assembly.