Shares in Ride Hailing Apps Uber (NYSE: Uber) and Lyft (NASDAQ: LYFT) were well above 10% on Wednesday.
The development covers what the BBC described as a “groundbreaking labor law,” and was passed in 2019 to determine that gig economy workers should have the status of employees and the necessary protections and rights associated with that status.
Measurements Today – The name Proposal 22 is backed by a riding app and is backed by a nearly $205 million company, the most expensive in state history. And while some drivers supported the motion, the labor group stood against it, saying that employee status guarantees rights such as minimum wage. Over time; expenses; paid sick days and holidays. Health care; and unemployment insurance.
The California Labor Federation has accused proponents of Proposition 22 of “trying to purchase their laws through the voting measurement process.” The labor group was crushed by Uber, Lyft, Doordash and Instacart after raising about $20 million to oppose the motion.
The ride app had threatened to withdraw services from California if they were forced to start treating drivers as full-fledged employees.
In support of the move, the Yes 22 campaign said:
“Proposition 22 protects drivers’ preferences for being independent contractors who can work flexible when, where, and how long it takes.”
Opposed to the statement, the coalition of gig workers opposing the motion said “we simply hijacked the CA’s voting measurement system by spending millions of millionaires to mislead voters.”
“Uber, Lyft and other gigs (companies) have adopted a voting measurement system aimed at giving voice to ordinary Californians, benefiting the richest (companies) on the planet.”
Similarly, Terry Gerstein of the Harvard Labour and Worklife Program and Economic Policy Institute in an email to CNN Business, said the results: Anyway, following the news, Lyft’s stock went above 11% to nearly $29.2, while Uber stock spiked between 14% and 15% to nearly $40.99.
