Post #2: June 23

RDU Advocacy Impacts AB 1340, and Next Steps in Sacramento

AB 1340 is Announced

When AB 1340 was first announced on April 8, there was little information available about what it would contain. RDU, already familiar with labor laws like the NLRA and the Myers-Milias-Brown Act, asked an important question: What would a strong labor law for California rideshare drivers need in order to help us take on Uber and Lyft and win?

Once the bill was amended on May 27 to include actual policy details, RDU drivers reviewed it carefully. We compared the bill to what’s truly needed to form a union and negotiate better pay and working conditions. We saw potential—but also serious gaps that must be addressed.

RDU Advocacy Starts Working

Over the last few weeks, RDU has met with several legislative offices. As the largest and oldest rideshare driver organization in California, we’ve urged lawmakers to include our priorities in the bill. On June 19, we sent a letter to the Senate Labor Committee outlining the changes AB 1340 still needs.

That night, the bill was amended to include some of the changes we asked for—specifically, more organizing rights and protections (related to points #2 and #5, below). These updates are a step in the right direction: moving away from a weak bill and toward a stronger law that can help drivers stand up to powerful companies like Uber and Lyft.

What’s Next

RDU members will continue pushing for the changes needed to make this bill truly effective. If you support our goals (see points 1–7 below, or in our letter to the Senate Labor Committee), call, text or email RDU (info@drivers-united.org) to learn how to get involved.

Having a clear path to union recognition and real contract negotiations could be a game changer for rideshare drivers in California. But to truly work, this bill must include strong driver protections, real capacity at the state level to enforce the rules, and basic union rights for drivers—like choosing our own union, deciding when to strike, and having a say in our working conditions.

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Post #1: June 21

AB 1340: Potential Benefits—and Risks

AB 1340 is a new bill that SEIU is moving in California to let rideshare drivers form a union to negotiate with Uber and Lyft. RDU supports the intent – but since our goal is not just to form a union but to actually win improvements, AB 1340 needs to be stronger.

The bill needs to be go much further than existing laws like the National Labor Relations Act (NLRA)*. For example under the NLRA, recent large-scale organizing drives at Starbucks and Amazon did result in union representation, but those workers report they’ve been unable to negotiate any improvements under the NLRA because of its insufficient protections. If AB 1340 is going to succeed where the NLRA fails, it must include tough enforcement and protections. Otherwise, we risk ending up with no meaningful changes – or no contract at all.

Critical Changes Needed to Strengthen AB 1340:

To enhance AB 1340’s effectiveness, strengthen protections, and keep Uber and Lyft in check and accountable to the law, the following measures must be included in AB 1340:

1. Fair Pay for Drivers

Prop 22 promised drivers at least $19/hour, but independent studies show we average just $6.20/hour—well below minimum wage. AB 1340 needs to fix this by making sure contract negotiations include:
        - Pay for all "app-on" time (including waiting)
        - Full mileage and expense reimbursement
        - A true minimum wage or higher

2. Protect Drivers and Enforce Accountability
Drivers must be protected from retaliation when we protest, picket, or strike. The bill must guarantee these rights – and unlike its current form, must require timely and serious consequences if Uber or Lyft retaliate.

3. Driver Democracy: AB 1340 must let drivers be free to choose our own union – not strip us of a basic labor democratic right by limiting that choice to certain traditional unions. No organization has experience bargaining contracts in this sector, and the state should trust that drivers know what’s best for our future. Also, voting eligibility must be based on “app-on” time, not number of rides or “active” time. Otherwise, companies’ use of the algorithm gives them total control over who gets to vote and participate in union democratic process.

4. Enhanced Enforcement Mechanisms: The bill identifies the California Public Employment Relations Board (PERB) as the enforcer of the process of unionization and contract negotiation. PERB is not resourced properly to enforce the rules on Uber and Lyft.  A statewide first contract fight for all CA rideshare drivers would be by far the largest labor dispute PERB has overseen in its history, and the first involving corporations rather than government employers. AB 1340 must give PERB and even stronger authority.

5. Mandatory Recognition and Bargaining
AB 1340 needs stronger protections than previous laws. The bill must require Uber and Lyft to recognize certified driver unions and negotiate in good faith, or face swift and severe consequences.

6. Provide Safe Pathway from Misclassification to Full Labor Rights: If Prop 22 were overturned and we went back to full labor rights under AB5, the current version of AB1 1340 would put the driver union and any improvements we had won under 1340 at risk. Under AB5 our rights would be protected by the NLRA. AB 1340 must guarantee a seamless transition of reclassification if Prop 22 is nullified to protect existing contracts and union recognition., protecting gains achieved under AB 1304.

7. Ban on Company-Controlled Unions
Uber’s strategy is to partner with company-friendly unions and even pay some unions to “represent” drivers. These types of partnerships create “company-unions.”  Federal law bans these types of unions, and AB 1340 should too. No driver union should be controlled or funded by the companies.

Call, text or meet with RDU for more info or to get involved with this effort.

*the federal law governing union rights for all private sector workers specifically excludes independent contractors. Because Prop 22 defines us as independent contractors under state law, the pathway to becoming a union as app drivers in California is unclear. That is why the idea of having a state law governing our ability to unionize may be helped by a state law that outlines our rights to unionize and hold companies accountable to bargaining a contract with us.