⚖️ California allows gig drivers to unionize

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California Drivers Gain Right to Unionize

Governor Gavin Newsom signed a bill Friday granting Uber and Lyft drivers in California the right to unionize, even as independent contractors. The move marks a significant shift in gig-worker protections, enabling more than 800,000 drivers to collectively bargain for pay, benefits, and working conditions. Lawmakers framed the legislation as part of a broader effort to balance labour rights with the operational realities of ride-hailing platforms.

Part of a Larger Compromise

The unionization bill arrives alongside legislation that lowers insurance requirements for Uber and Lyft, forming a deal negotiated among lawmakers, unions, and the companies. Newsom called it an “historic agreement between workers and business that only California could deliver,” highlighting the state’s unique approach to regulating the gig economy. Uber’s head of public policy in California described the legislation as a compromise that both cuts costs for riders and amplifies drivers’ voices.

Unionization Momentum Expands

California follows Massachusetts, where voters approved a measure last fall granting similar unionisation rights to ride-hailing drivers. The trend reflects a growing national focus on giving gig workers more representation and collective bargaining power. Startups and established platforms alike may need to rethink labour strategies as union rights for contractors become increasingly common.

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