Uber, Lyft and DoorDash threatened August 29 to spend $90 million on a California ballot measure if y can’t reach a deal with unions and lawmakers on legislation that would change rights of ir drivers and or so-called gig workers.

“We remain focused on reaching a deal, and are confident about bringing this issue to voters if necessary,” rian Durbin, senior director of communications at Lyft, said in a statement.

Reason for companies’ team-up

companies’ team-up comes as California lawmakers debate a bill that would make it harder to classify workers as independent contractors inste of employees. As employees, workers are entitled to more w protections and benefits.
But ridesharing and on-demand delivery companies say labeling workers as such would upend ir business model built around driver flexibility. California Labor Federation, which sponsored bill, quickly vowed to fight a ballot measure.
“We will meet gig companies’ absurd political spending with a vigorous worker-led campaign to defeat this measure to ensure working people have basic job protections and right to organize a union y deserve under law,” said Steve Smith, federation’s spokesman.

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Companies to skip  ballot if y can reach a deal

companies say y would skip ballot if y can reach a deal with Gov. Gavin Newsom and unions on a new piece of legislation that sets separate rules for drivers who work “gig” jobs. This isn’t first time an industry has pressured lawmakers to act by dangling prospect of a long and costly ballot fight. Last year, bever companies, paint industry and a wealthy developer all withdrew initiatives at last minute after striking deals with lawmakers.

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Strict laws on worker classification

legislation faces a vote Friday in a key state Senate committee. California’s law would be strictest on worker classification in nation and potentially set a precedent for or states to follow, increasing pressure on companies. Durbin and Davis White, of Uber, said companies have agreed to set a base hourly w of $21 for drivers, to pay into a fund that drivers could tap for portable benefits and to establish sectoral bargaining. That would allow drivers who work for various companies to bargain toger.

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Delivery App Doordash's statement

DoorDash’s statement says company supports a minimum pay standard, occupational accident insurance and protection from discrimination, but did t mention collective bargaining rights. proposed text for ballot measure has t been released. Democratic Assemblywoman Lorena Gonzalez, author of bill on worker misclassification, suggested campaign was hypocritical. “Billionaires who say y can’t pay minimum ws to ir workers say y will spend tens of millions to avoid labor laws,” she tweeted.

Nathan , a spokesman for Newsom, declined to comment. Newsom, a Democrat, clashed with State Building and Construction Tre Council earlier this week on bill. But at least one union, SEIU, has indicated a willingness to set new standards specific to gig workers. Ann O’Leary, Newsom’s chief of staff, said in a statement Wednesday that goverr’s office is “aggressively fighting for right of workers to organize and earn higher ws.”

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