California receives some $27 billion a year from the federal government to subsidize insurance coverage for low- and moderate-income Californians, an amount roughly equivalent to what the state spends annually on prisons, colleges and universities, according to estimates by the UC Berkeley Labor Center.
Reich has a more optimistic view than Uber and Lyft of their ability to transition. He predicts that in California, prices would increase 5% to 10%, while labor costs would go up 25% to 30%.
While every thinking person is rightly worried about the prospect of a third U.S. wave of COVID-19 cases and deaths, one should take a moment to contemplate a pandemic-related disaster in which the first wave is just beginning. That’s the meltdown of state and local government budgets produced by the higher costs of dealing with the crisis combined with the collapse of revenues.
Let’s doff our hats to Uber, Lyft and their fellows in the gig economy. Having created a model of exploiting workers and obnoxiously browbeating local officials to get their way, they have now set a record for spending on a self-interested ballot proposition.
Joe Biden said at the Democratic National Convention that America should “lead the world in clean energy and create millions of new good-paying jobs.” Similar thinking underlies the Green New Deal, which declares a goal of “guaranteeing a job with a family-sustaining wage, adequate family and medical leave, paid vacations, and retirement security to all people of the United States.” So how do we actually create those kinds of family-supporting jobs, and give people the skills to fill them?
A UC Berkeley Labor Center study found that if the state had had a stockpile prior to the COVID-19 pandemic, thousands of workers would not have contracted the virus, and California would have saved $93 million each week on unemployment claims from out-of-work healthcare workers.
Latinos account for 56% of California’s low-wage workers, according to the UC Berkeley Labor Center, many of whom work in essential jobs in which they must leave home to work, raising their risk for infection.
“It was one shocking number after another as I looked at this,” said report co-author William Dow, a professor of Health Policy and Management in the School of Public Health at UC Berkeley. “Based on these numbers, we should be building a stockpile for the future.”
The pandemic has dramatically raised the stakes in the years-long fight over what protections Lyft, Uber and other gig-economy companies should be required to provide workers.
Enrollment could also be lagging because the service industry has been hit hard, and many low-income workers in restaurants, bars or salons were already enrolled in Medi-Cal. “About a quarter who were at risk of losing jobs were already enrolled when the crisis started,” said Laurel Lucia.
The compensation and benefits the companies would pay under Proposition 22 would fall far short of the costs their drivers must shoulder. The UC Berkeley Labor Center estimated in October that 120% of the California hourly minimum wage of $13 in 2021, or $15.60, would effectively shrink to $5.64 an hour because of provisions in the initiative.
A UC Berkeley Labor Center study last month analyzed the racial makeup of jobs that California officials designated as essential, including those in hospitals, home care, nursing homes, grocery stores, warehouses, meat processing plants, trucking and public transit agencies.
Additional scrutiny from law enforcement during protests on top of pandemic restrictions serve as a “double whammy” for people of color, said Brenda Muñoz, deputy chair of UC Berkeley’s Center for Labor Research and Education.
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