>> Continued From the Previous Page <<
California is now only the second state in America — right behind Massachusetts — to allow Uber and Lyft drivers to form unions and bargain collectively for higher wages and expanded benefits such as healthcare.
The deal, finalized in August, came after months of closed-door meetings between Democratic lawmakers, union bosses from SEIU, and executives from the ride-sharing giants. The legislation, dubbed AB 1340, was pushed by Assemblymembers Buffy Wicks and Marc Berman, both Democrats, with SEIU California as its main sponsor.
The law officially gives app-based drivers the ability to negotiate for better pay and employee-style benefits, something progressives have long demanded.
But while Newsom and his allies are celebrating their “victory for workers,” others are sounding the alarm — warning that it could backfire catastrophically.
Economists and drivers alike warn that unionization could crush the very people it’s supposed to help. With more than 800,000 Uber and Lyft drivers in California, even a small shift in costs could trigger devastating job losses.
That’s because companies like Uber and Lyft are already struggling to turn a profit. Every time state Democrats add more regulations, the costs go up — and the companies respond by cutting back. Many drivers have already seen their earnings slashed as the ride-hailing platforms try to stay afloat.
For years, ride-share work has been a lifeline for immigrants, part-time workers, and those between jobs. But now, many fear that lifeline is about to be cut for good.
Veteran drivers remember the early days — when flexible hours and decent pay made driving a solid option for working families. Those “glory days” are gone, and Newsom’s latest move might bury them forever.
Adding insult to injury, analysts say this new law could push Uber and Lyft to fast-track their automation programs. After all, self-driving cars don’t need healthcare, paid leave, or union representation.
Companies like Tesla and Google’s Waymo have already rolled out fleets of autonomous vehicles in California, Arizona, and Texas. And as labor costs climb in California, the incentive to replace human drivers with machines becomes impossible to ignore.
If that happens, no union on Earth will be able to save the jobs Newsom claims to be protecting.
Critics argue that Gavin Newsom — who rarely faces the same economic pressures as the people he governs — continues to champion policies that sound compassionate but devastate working Californians in practice.
By siding with union interests and progressive activists, Newsom may have just guaranteed that thousands of Uber and Lyft drivers — the very people he says he’s “giving a voice” — will soon have no job at all.
As one frustrated driver told a local outlet, “They say this is for our benefit, but I don’t see how losing my job helps me feed my family.”
In California’s latest experiment in progressive economics, it seems the state’s most flexible workers are about to learn just how rigid the consequences can be.
