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The Activities Of The Uber And Lyft In California Can Be Temporarily Suspended

According to the news in Business Insider, the activities of the Uber and Lyft in California can be temporarily suspended.

The Activities Of The Uber And Lyft In California Can Be Temporarily Suspended
Yazar: Tom Roberts

Yayınlanma: 13 Ağustos 2020 22:30

Güncellenme: 20 Kasım 2024 19:16

The Activities Of The Uber And Lyft In California Can Be Temporarily Suspended

The State of California ruled that Uber and Lyft could not show their drivers as 'contract workers' and had to have employee status at the company. According to the news in Business Insider, the activities of the Uber and Lyft in California can be temporarily suspended after this decision. After this decision made by a state judge, Uber CEO Dara Khosrowshahi made a statement. “It is very hard to believe that we can quickly switch our current model to full employment model,” said Khosrowshahi.

THERE MAY BE A TEMPORARY STOP ON 20 AUGUST

In the statement made by Lyft, it was stated that as of August 20, activities in California may be temporarily suspended. It was also emphasized that 16 percent of the company's customers were public employees in the state. Citizens in California will vote on this issue in the US elections to be held in November. The status of Uber and Lyft employees will be clear after this vote. In its application to the court, Uber asked that activities continue as they are until the election.
Uber and Lyft drivers will have many extra benefits if they switch to full-time employment. However, the cost of this to companies will be higher due to the general expenses that will increase. Uber argued that in full employment, employees would lose some of the flexibility they currently love. Uber offered a third option instead of full employment. Accordingly, he suggested that a social aid fund be paid in varying amounts according to the monthly working conditions of the employees. Uber also suggested that its employees struggling for full employment were led by politicians.

ALLEGED 'NO SUPPORT IN THE OUTBREAK'

Uber driver Mekela Edwards, a member of the 'We Drive Progress' group that advocates full employment, said: "The court's decision will put an end to the unlawful actions of Uber and Lyft refusing to benefit and protect their drivers who urgently need them." Uber and Lyft drivers claimed that both companies did not provide the necessary health support, especially in the corona virus epidemic. If Uber pulls out of California entirely, this will be the first step in this direction in the US. That doesn't seem to upset California Attorney General Xavier Becerra. In a statement, Becerra said, "Business models based on short-term workers should not be just in California, not anywhere." Khosrowshahi, CEO of Uber, one of the companies that has a week to appeal the decision, said “I hope the courts will rethink. "I definitely don't want to withdraw from California," he said.
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