California Governor Signs Bill Granting Union Rights to 800,000 Ride-Hailing Drivers

California's Uber and Lyft Drivers Gain Union Rights In a significant development for the gig economy, California Governor Gavin Newsom signed legislation on Friday allowing more than 800,000 ride-hailing drivers to join unions and bargain collectively for better wages and benefits. The measure, which takes effect immediately, requires companies like Uber and Lyft to engage in good-faith bargaining with unionized drivers while still maintaining their independent contractor status. This compromise has been hailed as a major breakthrough in the long-standing battle between labor unions and tech companies. "This is a historic moment for workers' rights," said Maria Sánchez, president of the California Labor Federation. "For too long, gig companies have exploited their workers by denying them basic protections and benefits. Today's law brings us closer to a more equitable and just economy." Supporters argue that the new law will open the door for the largest expansion of private sector collective bargaining rights in California's history. However, critics contend that it may not go far enough to address the underlying issues facing ride-hailing drivers. "Independent contractors are still independent contractors," said a spokesperson for Uber. "This law does not change our business model or the way we classify our drivers." The legislation is part of a broader trend in which states are re-examining the classification and rights of gig workers. In November, Massachusetts voters passed a ballot referendum allowing unionization, while drivers in Illinois and Minnesota are pushing for similar rights. The new law does not apply to drivers for delivery apps like DoorDash, which has raised concerns among some advocates that it may create unequal treatment between different types of gig workers. As the policy takes effect, ride-hailing companies will be required to engage with unionized drivers in good-faith bargaining. However, the specifics of how this process will work and what benefits drivers can expect remain unclear. The California Labor Federation has already begun organizing efforts among ride-hailing drivers, with plans to hold meetings and rallies across the state. As the battle for workers' rights continues, one thing is certain: the landscape of the gig economy has changed forever. *Reporting by Yro.*