Contracting out the driver’s role allows companies to shift the cost of truck ownership and operation to individual drivers, according to a report from the Labor Center at the University of California, Berkeley.
“Basically, these are largely untested technologies with virtually no oversight,” said Lisa Kresge, research and policy associate at the University of California, Berkeley Labor Center, who studies the intersection of technological change and inequality. “That’s unprecedented in the workplace.”
While the $220 million campaign to pass the ballot initiative promised drivers “120% of the minimum wage,” a report from the University of California, Berkeley Labor Center estimated that real driver earnings will be $5.64 an hour.
“If the companies lose, it may garner the attention of other states who are looking for what to do here,” said Ken Jacobs, the chair of the Center for Labor Research and Education at the University of California at Berkeley. “California isn’t the only one with lots of these suits.
The laws vary but generally require companies to take a hands-off approach to union organizing efforts in exchange for state permission to sell cannabis.
If Uber and Lyft can continue delaying an order to convert their California drivers to employees and reorganize into franchise models, it would signal to other companies that corporations have the power to avoid complying with the law, said Ken Jacobs, chair of the Berkeley Labor Center.
