While most people’s attention has been on the Presidential election, voters in California got to vote on something called Proposition 22 too. It asked voters whether app-based drivers should continue to be classified as contractors or whether they should be considered employees and gain extra rights; 58.42% said they should continue to be classified as contractors while 41.58% were in favour of changing their status.
Unsurprisingly, the big tech firms with a stake in the measure such as Uber, Lyft, Instacart and DoorDash backed the bid to classify workers as contractors. The firms were so invested in keeping their costs low, in fact, that they invested more than $200 million, which is a record, trying to convince people to vote in their favour.
Drivers and unions were hoping the public would vote the other way. Nicole Moore, a driver and organiser at Rideshare Drivers United, said that tech firms outspent the competition by 20:1 but ultimately, the decision will not stop workers and unions from demanding better working conditions. Had drivers been classified as employees, they would have been eligible for the minimum wage, unemployment benefits, and health insurance.
While the result is not what a lot of drivers wanted, Proposition 22 still requires some concessions from the likes of Uber and Lyft. They will have to provide some benefits such as vouchers to access subsidised health insurance and guarantee hourly earnings. The companies will also bolster safety by performing more background checks on drivers.
Source: The Guardian