Ride-share companies Uber Technologies Inc. and Lyft Inc., and food delivery platform DoorDash Inc. have pledged $90 million to hold a California ballot if talks between unions and lawmakers on a worker classification bill fall apart, the Associated Press reported Aug. 29.
The three companies, which are all based in San Francisco, are fighting a bill sponsored by the California Labor Federation that require higher standards for employers to classify workers as independent contractors instead of employees. Workers who are tagged as employees are entitled to more wage protections and benefits, the AP said.
Uber, Lyft and DoorDash have reportedly argued that labeling workers as employees goes against their business model, which is built around driver flexibility.
"We remain focused on reaching a deal, and are confident about bringing this issue to the voters if necessary," Lyft's senior director of communications Adrian Durbin reportedly said.
However, the California Labor Federation will seek to block the adoption of a ballot measure, the report said.
"We will meet the gig companies' absurd political spending with a vigorous worker-led campaign to defeat this measure to ensure working people have the basic job protections and the right to organize a union they deserve under the law," Steve Smith, a spokesman for the federation, reportedly said.
If a deal is reached with Gov. Gavin Newsom, the companies reportedly said they will skip the ballot. The AP said a spokesman for Newsom declined to comment on the companies' plan to hold a ballot.
Ann O'Leary, Newsom's chief of staff, reportedly said Aug. 28 that the governor's office is "aggressively fighting for the right of workers to organize and earn higher wages."
Meanwhile, Uber and Lyft have agreed to set a base hourly wage of $21 for drivers, while DoorDash supports a minimum pay standard, occupational accident insurance and protection from discrimination, the report added.
In February, Uber sued New York City over its decision to place a cap on the number of ride-hailing drivers operating on the streets, while Lyft sued the city in January for setting a minimum pay standard for its drivers. Lyft lost its petition in March.
