The results of the California voters decided to consider the free worker as an independent and not as an employee, thus achieving a victory for Uber and Lyft, thus cancelling the law passed last year that considers temporary employees to be ordinary employees, and thus enjoy the protection that all employees enjoy.
The new proposal No. 22 to consider employees independent of the company was supported by the companies Uber, Lyft and DoorDash, and it is reported that the campaign carried out by the companies cost 205 million dollars, to be the largest campaign in the history of the state of California. Shares of Uber and Lyft were up at the opening of trading on Wednesday, with Uber shares rising 15% in the middle of the day, while Lyft shares rose 13%.
On the other hand, some drivers supported Proposition No. 22, but the union opposed them and pointed out the positives inherent in classifying them as employees, which include: achieving a minimum wage, covering expenses, wages for working overtime, paid sick leave, health care and financial compensation when leaving job.
The union raised about $20 million to counter Proposition 22, but the massively funded campaign from companies was able to buy TV advertising, companies put ads on their apps, Uber and Lyft threatened to pull their services out of California entirely or reduce the number of drivers. Great if they start to consider their employees as employees.
On the other hand, the companies winning was accompanied by some concessions as they must now provide a minimum earnings equivalent to 120% of the minimum wage, health care and accident insurance.