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Uber Do Not Have To Hire Drivers
California is failing in its attempt to protect the drivers of Uber, Lyft and other gig economy companies from social and labor rights. With record investments in the campaign against the law, the corporations prevail in a referendum.
Yazar: Tom Roberts
Yayınlanma: 5 Kasım 2020 00:06
Güncellenme: 21 Eylül 2024 04:57
Uber Do Not Have To Hire Drivers
California's voters have ruled that ride-sharing providers like Uber and Lyft can continue their controversial business model in the tech giant's home state despite a legal ban. In parallel to the presidential election, they voted in a referendum for an exception to a California law that obliges companies to employ their drivers as employees and not as self-employed. According to the election control, 58 percent voted for the proposal, 42 percent against.
Corporations such as Uber and Lyft, but also food delivery services and other companies, turn over billions by placing orders with drivers via their apps. They see themselves as platforms for independent contractors. This is also known as the gig economy. Critics, on the other hand, see a complete dependence of the drivers on the companies that do not fulfill their responsibility as employers. California wanted to require drivers to be classified as employees and receive, among other things, minimum wages, sick pay and unemployment benefits.
The state with the largest economy in the United States is not only an important market for Uber & Co. As the home of Silicon Valley with its globally dominating technology companies, California is considered a pioneer for the global development of the industry.
According to one estimate, Uber and Lyft in California alone could face additional costs of up to $ 100 million annually, primarily through social security contributions. Correspondingly, the companies invested a lot of money in the election campaign in the past few weeks and months. Together with delivery companies Doordash, Instacart and Postmates, Uber and Lyft spent $ 200 million on their campaign. The vote is considered the most expensive of all time in California. The counter-campaign led by the trade unions did not even have a tenth of this amount available.
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