California Voters Exempt Uber, Lyft, DoorDash from Having to Reclassify Drivers
wsj.com
wsj.com
It's hard for me to not feel disappointed with the public on this one.
58-42 is a wide margin. Ideally the government shouldn't be legislating stuff which has only 40% support.
All these were passed when public support was hovering at 25% - and shortly after they were passed, public opinion quickly shifted in an S-curve.
That's why we have a constitution, three branches of government, an electoral college for the executive, and had indirectly elected senators. It was all to force deliberation and buy enough time for saner minds to prevail through the moral panics of the day.
The system is broken because the process was corrupted decades ago with the greatest of intentions.
You can't just expect to make any sizeable minority of your nation's economy non-viable and not have all the people's lives you just ruined start shooting. You might be able to get away with it if the people losing out are an evenly distributed minority but if there's a huge block where they are the overwhelming local majority it's gonna get ugly.
The alternative path out of slavery would have been to boil the frog but with the uneven geographic distribution of slavery that wouldn't have been reasonably possible to do socially (e.g. convince people to spend more any more money treating slaves better until wage labor is competitive and slavery can be legislated away without a war). You might be able to boil the frog legislatively but the weak government structures of the 19th century were not well equipped for that kind of thing and that requires a lot of support anyway. In order to get the nation bootstrapped the founders intentionally put off any action for several decades. Something calamitous was kind of bound to happen. Frankly I think we were kind of lucky we got off with a "one and done" war over it (yes I know there was a bunch of background violence after the fact) rather than a perpetual slow boil conflict that turns into a low intensity shooting war every few decades like you see in other parts of the world.
End of Reconstruction, Bloody Summer, Brown v Board and the subsequent CRM, the War on Drugs, Trayvon Martin et al. I'd say we're on schedule.
Enjoy the gritty crunch, it tastes just like chicken.
In fact, it was the slave owning southern states that wanted the Senate to be apportioned proportionally, rather than equally (this was the Virginia Plan). The Virginia Plan created a two-chamber legislature with proportional representation based on population. The New Jersey Plan would have allocated one member of Congress to each state. The Connecticut Compromise that led to the current allocation received buy-in from both slave and non-slave states, because it was about small vs large states, which were present in both sides.
The population advantage of the South was the impetus behind the infamous "three fifths compromise". The 3/5 compromise was designed to reduce the interest of slave-holding states in Congress as well as the elections.
The Senate was done for small states, but the Electoral College was definitely invented to appease the South.
No it wasn’t. Under both the Northern proposed New Jersey Plan as well as the Southern proposed Virginia Plan, the President would have actually been elected by Congress. There were concerns that having Congress elect the President would jeopardize separation of powers. So the Electoral College was created, with one elector for each member of Congress. It had nothing to do with protecting the interests of slave-holding states, but instead was designed to make the Presidency more independent of Congress. The fact that the President would be elected by States as opposed to people directly was uncontroversial. What was controversial was whether the apportionment of those votes should be proportional to the population (where both chambers of Congress had proportional votes) or whether it should be the degressive proportionality that we have today (where the upper house has equal representation). The slave-states wanted the former, not the latter, owing to their population advantage.
Also, degressive proportionality as a concept is fairly uncontroversial in the context of Federal electoral systems: https://en.wikipedia.org/wiki/Degressive_proportionality
It’s what’s used to allocate seats in the European Parliament, who vote to elect the President of the European Commission, who is the Head of Government of the EU. In many ways, the structure of the EU is identical to that of the US, especially prior to the passage of the 17th Amendment.
- New England and the Great Lakes were virulently anti-slavery for primarily economic reasons, but some moralist reasons also.
- New York City was mercantile and not thrilled about being in the war. Lots of protests and political violence in NYC during the Civil War.
- Pennsylvania and the Lower Ohio Valley were generally more anti-slavery for moral and economic reasons, but generally more pacifist and amiable toward the South than New Englanders.
- Appalachia, which covers all the border areas along the mountains running from central PA to northern AL, who were completely ambivalent about slavery, but extremely patriotic and anti-secession.
Pre-1860 a vote on slavery certainly would have failed in the North and may have led additional states to secede. Lincoln was explicitly not pro-abolition for this reason.
You're mistaking correlation for causation.
Things first pass when they have ~25% popular support because that's when they first get enough votes to pass in a two party system. You get 51% of the party that controls 51% of the legislature, your measure passes.
Then support for it increases because that's what it was doing to begin with, which was how it got to 51% of 51% from whatever smaller amount of support it had before it passed.
If you require a higher bar to change the law, it takes longer. But change inevitably still happens.
Slavery wasn't doomed by voting, it was doomed by economics. Before the industrial revolution, working on a plantation (essentially serfdom) compared favorably with your other alternatives, which typically consisted of starving to death in the wilderness. After the industrial revolution, you could run away to a city and get a job in a factory, which is what everybody started doing and the whole system started to disintegrate.
And it was the same thing for women's suffrage. It came about following economic and social changes that essentially made it inevitable in a modern society. It would have happened anyway. It did happen anyway, despite being passed by constitutional amendment in the US, which has a supermajority requirement for enactment.
By contrast, ill-conceived ideas that aren't inevitable would die when they go out of fashion without ever being implemented.
True for all except gay marriage. It was an exception in being popular when legalised.
Support for gay marriage was at the 25% level nationally in ... well, per https://web.archive.org/web/20050517033538/http://www.aei.or... page 21 I would put it in the mid-1990s, 20 years before full nationwide legalization. Of course legalization in various states preceded national legalization, as expected.
The other things you list predate modern polling (except maybe Black voting rights, depending on how you define that). But just looking at women's suffrage, it was a constitutional amendment. That means is got 2/3 majorities in both houses of congress and ratification by 3/4 of state legislatures. It's hard to see how something with only 25% popular support could manage that, so at this point I'm going to ask you for data to back up that extraordinary claim.
> if we left that up to popular opinion
... then national polls are not relevant, because marriage laws are set at the state level. In fact, until Obergefell v. Hodges, it essentially was left up to popular opinion, and many people lived in states where it was unpopular enough to pass legislative, or even constitutional bans.
But no matter how you slice it, I see no obvious support in the data for the original claim that "gay marriage was legalized when popular support was only at 25%".
Now maybe there were some states that had support at only 25% in 2015. For example, https://www.nbcnews.com/news/us-news/where-same-sex-marriage... is a 2014 article that mentions that Missisipi had 14% support in 2004 and support went up by "1-2% per year since then". So _maybe_ it was at only 25%, as an absolute lower bound. But chances are it was higher than that even there.
Well I'm sure you'll get over it when you consider that overreach and imperfect laws don't operate in a vacuum.
(It passed only a few years back...)
If prop 11 was rejected, someone could go on HN and say that they're disgusted with how CA voters decided that EMTs shouldn't receive extra mental health care. Or that voters said that it's better to let someone die than require an EMT to postpone their (still paid!) break by 1 hour
Another proposition was to legalize weed production. That one also won. If all the weed supporters would have also voted for abolishing death penalty...
The overwhelming majority of voters are not motivated enough to properly consider an issue which is going to impact a tiny minority of other people. And people will never feel responsible for their vote.
This is why politicians should exist, to be responsible for these decisions and to be accountable afterwards (in theory). Direct democracy lets everyone wash their hands of any responsibility.
I'm not convinced which system is better or not, personally, or if a better system can exist.
Here is the only reference to seven-eighths in Prop 22:
> After the effective date of this chapter, the Legislature may amend this chapter by a statute passed in each house of the Legislature by rollcall vote entered into the journal, seven-eighths of the membership concurring, provided that the statute is consistent with, and furthers the purpose of, this chapter
Seven-eighths to overturn, eh? Now where did you go get that?
Now secondarily, one might ask if someone "disappointed with the public" is sufficiently informed about ballot propositions in the first place. For instance, if you're a California voter and you can't answer "If a ballot proposition is passed through voter referendum, what majority of the legislature can overrule it?", then can you really be considered an informed voter?
Or, more directly, you are clearly expressing discontent with California voters while being the problem since you are clearly uninformed about Prop 22 and about how ballot props work (and perhaps about why they have to work that way).
> (3) Any statute that prohibits app-based drivers from performing a particular rideshare service or delivery service while allowing other individuals or entities to perform the same rideshare service or delivery service, or otherwise imposes unequal regulatory burdens upon app-based drivers based on their classifcation status, constitutes an amendment of this chapter and must be enacted in compliance with the procedures governing amendments consistent with the purposes of this chapter as set forth in subdivisions (a) and (b).
> (4) Any statute that authorizes any entity or organization to represent the interests of app-based drivers in connection with drivers’ contractual relationships with network companies, or drivers’ compensation, benefts, or working conditions, constitutes an amendment of this chapter and must be enacted in compliance with the procedures governing amendments consistent with the purposes of this chapter as set forth in subdivisions (a) and (b).
> (d) Any statute that imposes additional misdemeanor or felony penalties in order to provide greater protection against criminal activity for app-based drivers and individuals using rideshare services or delivery services may be enacted by the Legislature by rollcall vote entered into the journal, a majority of the membership of each house concurring, without complying with subdivisions (a) and (b).
And the secondary discriminator question: "If a ballot proposition is passed through voter referendum, what majority of the legislature can overrule it?"
Answers:
1. N 7/8guf znwbevgl va gur yrtvfyngher pnaabg ercrny guvf zrnfher.
2. Va trareny, va Pnyvsbeavn, ab znwbevgl va gur yrtvfyngher pna bireehyr n onyybg cebcbfvgvba jvgubhg ibgre nccebiny.
If you get either of those wrong, the uninformed voter is you.
So it's quite ironic that someone against prop 22 is claiming everyone for it is uninformed while referencing said clause.
We all know this. The point is that the alternative is one that can be overturned more reasonably. "Ah, but you see this one is slightly easier to modify" is crap, IMO. The choices weren't only "literally no way" or "7/8ths".
> ...requires a 7/8ths vote to overturn...
This is just not right. You really have to tie yourself up in knots to believe it.
Well, thanks for exposing that your heuristic is broken-- because the only place I've seen it brough up is from reading it myself.
(If you saw it discussed elsewhere you may well have seen /me/ writing about it).
The 7/8th's threshold is an insult-- it exists for the only purpose of telling an effective lie about the legislatures ability to amend these exclusions.
That isn't the only way the props effects could be effectively bypassed, they could be bypassed by other updates to california law, e.g. to unionize app workers, changes to laws governing working conditions for drivers, etc. All such changes are potentially pre-empted by prop22's language.
Prop22 arguably creates a fairly broad automatic veto for Uber/et. al. against any California law that could be argued to impede the rideshare business. For example, there is a clear argument post prop22 that a law which prohibited registered sex offenders from being rideshare app drivers would now require a 7/8th's vote.
Uber has repeatability shown itself more than willing to exploit loopholes in an unethical manner and we've now granted them a fairly generalized shield against loophole closing.
Ultimately the courts may not be willing to follow such a broad effect, but the recipe for a lot of time and money to be wasted litigating it is coded right into the proposition.
Because I hope it does.
I also unfortunately have to hope that the ride-share companies give the benefits they suggest, but I also want the US to unbundle this from companies to begin with, across the whole republic.
On top of the original exemptions, we even passed AB2257 which added a few dozen more (https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm...)
I think prop 22 is flawed, but I'm using it as a referendum on AB5 (and I think it's marginally better than the alternative). AB5 is a defacto ban on casual use of the gig economy. It would've required uber to reduce the # of drivers and/or start assigning them shifts
Do you think that maybe, just maybe, they might be scared to be honest with you under those circumstances?
1. Poor people cannot miss a paycheck. Getting fired means not paying rent, not eating, or not repairing the car you depend on for your livelihood.
2. Bosses spy on employees. This country has a rather nasty history of labor spies, and that tradition is undergoing an unfortunate revival. Poor people seem to know more about that history than comfortable-but-not-rich people. Not sure why.
From the exemption list, is there any that rival the likes of Uber or Lyft?
Also waiting time is very abusable. Uber could just force quit your app if there aren't any rides, and then you have to try to login and it will boot you instantly every time. Then once there is a ride it accepts you. Exactly how to meassure waiting time is therefore not viable, either uber wont be able to boot you making their business model unviable or you will never get any wait time anyway.
It amazes me that in this hub of free enterprise and cheerleading for free markets, people act like companies will fall over the instant they hit a complication.
In EU, compulsory union membership is generally prohibited as violation of right-to-work and freedom of association.
The state will not get its payroll tax.
The employees will not get their benefits.
Wait till the people get to vote on public sector pension plans...
The drivers will get their benefits, prop 22 added benefits to them without making them employees.
Companies withdraw operations when they are unprofitable. That's how business works. Capital get allocated based in margins. The AB5 restrictions make profitability unlikely. That means uber/lyft jobs simply won't exist. Is that a better outcome?
As to GAAP you don’t understand what that term is because that’s more about having a standard way of representing numbers but GAAP numbers don’t show the true numbers because of many different accounting rules like accounting for employee stock, which does not hit cash flow.
Anyway it's beyond rich describing half these companies as "profitable" in the first place. They're burning the cash at both ends to not get kicked out of california. I have no clue how you could imagine they're the people with leverage with a straight face.
I sincerely doubt uber/lyft/instacart etc. will ever be profitable and have margins that make them viable businesses.
Lyft/Uber etc. have zero leverage; inorder for them to make their margin and retain profitability, they depend on low labor costs. If those costs go up they aren't in business (e.g.demand elasticity of price will kill them).
So they aren't pushing this as a 'I have leverage' play. It's an existential issue for them. They cannot exist with the labor prices demanded by the AB5.
If they cannot make their margin, they go out of business and then there is no more ride share business. Then the existing jobs go away. And this is the point of my comment. These jobs only exist with low wages. Raise the wages and the jobs go away because the business becomes unprofitable and exits.
The point is that this often isn't someone's primary job. They take a job at Walmart or driving a school bus, it doesn't pay very well, so they get off work and pick up some rides to supplement their income before going home.
They don't need health insurance because they got it through their first job or their spouse, and imposing that cost on the second job only requires them to get paid less or have less flexibility etc. as the trade off the company has to make to justify paying the additional cost of mandatory benefits.
> They don't need health insurance because they got it through their first job or their spouse, and imposing that cost on the second job only requires them to get paid less or have less flexibility etc. as the trade off the company has to make to justify paying the additional cost of mandatory benefits.
Interesting to follow your thinking and your strategies, thanks for open sourcing it. From a European perspective all this sounds absurd though. Having medicare for all and a social safety net is standard in all European countries and other Global North countries.
No disagreements that having a robust social safety net is a necessity, but just want to nit-pick a little here and point out that not all European/Global North countries have "Medicare for all" or single payer systems. Germany has a public-private mix, Netherlands has a purely private universal healthcare system, Switzerland has a purely private universal healthcare system, Australia has a public-private mix (44% choose private), Singapore has universal catastrophic coverage but everything else is driven by savings accounts and private insurance among the upper-middle class, etc etc — Belgium, South Korea (technically "single payer" but only covers 60% of costs, private insurance fills in the gaps), Japan, etc.
Even "Medicare" in the US, is a public-private mix: roughly 37% of Medicare beneficiaries are on a private health insurance plan (Medicare Advantage), and we expect that number to reach 50% by 2025.
36% of Medicare beneficiaries are on private Medicare Advantage plans instead of the public "Original Medicare". This number has been growing so rapidly, that we expect by 2025, more seniors to be on a private plan than the public one. There's also great variance by State. In Florida, Pennsylvania, Wisconsin, Michigan, Minnesota, Oregon, Alabama, Hawaii, and Connecticut — over 40% of beneficiaries are on Medicare Advantage[1].
For most beneficiaries, Medicare Advantage costs about 39% less than Original Medicare[2].
Medicare Advantage plans are, on average, of higher quality than the public "Original Medicare"[3].
In Urban areas, Medicare Advantage costs less per capita to administer than Medicare [4] — and that's not including the extra Medicare Part D insurance that you would have to buy if you're on the Original Medicare plan. From this same research, public "Original Medicare" is still cheaper in rural areas, but not by a whole lot.
Disclaimer: I write software for claims processing and payment systems. I love talking about this stuff, so happy to chat more about it.
[1] https://www.kff.org/medicare/issue-brief/a-dozen-facts-about...
[2] https://healthpayerintelligence.com/news/medicare-advantage-...
[3] https://healthpayerintelligence.com/news/medicare-advantage-...
[4] https://www.commonwealthfund.org/publications/issue-briefs/2...
I thought the difference between Medicare advantage type plans is that it is an HMO type of deal where you can't pick your own specialized treatment centers and have to jump through a lot of hoops for complex medical issues and drugs as opposed to original PPO resembling Medicare (80% costs) + medigap part F? (remaining 20%) + part D for drugs.
Also thanks for the thorough breakdown, I had to go through Medicare hell getting this information to manage my parents care on an advantage plan that denied their cancer treatment at our preferred cancer center so I switched them back to original + medigap and never looked back cause everything is covered now at the world-class top ranking cancer center in our neighboring city.
Nope, Medicare Advantage plans are usually just PPO plans on a nationwide insurance marketplace that covers the Part A, Part B, and Part D benefits. By default, "Original Medicare" is just a government run version of that which only covers Parts A and B. That plan is also not "free", per se, as the beneficiaries still have to pay a monthly premium — it's just that the monthly premium covers Part B benefits, and Part A benefits are all covered by FICA taxes. I think(?) there are also some HMO MA plans. Seniors are now on average choosing Medicare Advantage instead of "Original Medicare" more often because they happen to like the varieties/options. If you don't care about those options, you're still entitled to Original Medicare just like you did with your parents.
The closest the tech community has probably gotten to Medicare Advantage, as a concept, is Chamath's recent SPAC taking Clover Health public. They're an up and coming MAdv payer, and appear to be growing pretty quickly. Oscar Health, another hip tech company, has a big Medicare Advantage business as well.
Affordable healthcare is what people really want. The current system of government incentives/mandates for employer-provided insurance in the US does that poorly and we're rightly criticized for it.
But there are a dozen plausible alternatives that are all better, and "Medicare for All" isn't even a particularly well thought-out one, because the existing Medicare system is premised on the continued existence of private insurance to do things like establish market prices. It's also the moral equivalent of having healthcare policy done at the level of the EU rather than the individual member states, which tends to invite more corruption and waste since both of those are compounded by scale and deep pockets.
Which is the real problem with the US system as it is. The employer-provided system is largely created and regulated at the level of the whole US, and as a result there are some specific businesses who are making out like bandits under the status quo, and affordable healthcare is inherently inconsistent with those companies continuing to make three point six trillion dollars a year. So they lobby hard against anything that would actually fix it, no matter whose solution you choose.
The right answer is probably "both" but you can't exactly vote for "both" political parties. Its a boring answer anyway :)
Yes, both.
> focus on decreasing healthcare costs for the country as a whole
Most importantly, I believe that through the patent system 1) Pharmaceutical Corporations, together with 2), politicians - who are corrupted through lobbying and who thus make advantageous laws (for Corps) - are getting away with murder. Yash Tandon gives a great example of this below:
“During the 1980s and 1990s I worked in many countries in eastern and southern Africa, and then for four years at the South Centre—2005–09. I can say from my experience that the industrialised countries of the North have been trying systematically to block all efforts by the countries of the South to industrialise. Their mega-corporations have tried—and, alas, succeeded—in privatising knowledge, and using it to promote corporate profits over the lives of people."
[...]
“It is the seeds and pharmaceutical companies of the West that have pirated the knowledge of seeds and medicinal products from the South. But whereas in the South this knowledge was shared as a public asset, the Western companies, having learnt from the South, proceeded to claim it as their private property. They are guilty—morally guilty—for the avoidable deaths of millions of people in the South who cannot afford their ‘patented’ medicines against, for example, AIDS, malaria, tuberculosis and other killer diseases. It is a sordid story. But it is not all doom and gloom. Those who control the system (the global corporations and the international organisations that the West controls) do not get their own way entirely. Wars do not always end in the victory of the militarily or ‘intellectually’ powerful.”
- Yash Tandon, Trade Is War: The West's War Against the World
> President Trump Signs “Most Favored Nation Price” Executive Order on Drug Pricing
Here are two headlines I offer without comment that can be searched with your favorite search engine for more information.
Headlines are not arguments...
"Legal Definition of argument. 1: a reason or the reasoning given for or against a matter under discussion — compare evidence, proof. 2: the act or process of arguing, reasoning, or discussing especially: oral argument."
Fair enough. More transparency is certainly a worthwhile goal, however, this rests on the basic assumption that a consumer always has the opportunity to make a rational choice between different alternative products or services (drugs, medical procedures, etc).
From what I've read, I doubt this is the problem in practice. Are you going to compare prices during a medical emergency? If your doctor tells you that you need an X-ray, will you stop him and check the nearby hospitals whether their X-rays are cheaper? How useful is price transparency if your essential medication is only made by a single company that can do arbitrary price hikes? What do you do if the "market rate" for some essential operation is still more than you can afford?
[1] https://www.hhs.gov/about/news/2019/11/15/trump-administrati...
If the people you know don't actually want or need those advantages, why are they doing that job instead of working at Walmart or a gas station or a hundred other jobs where you are an employee?
How about neither? They're overwhelmingly part-time side work. This was pretty clear in the polls.
IOW, the only thing worse than the legislature making arbitrary carveouts, is carveouts being claimed by anyone who can fund a prop campaign. At least with the former, there can be a compromise later that rationalizes the whole system; but post-prop 22, everyone will also have to work around Uber's carveout.
[0] Though I don't live there anymore FWIW.
It is not a priori true that a minimum wage is not utility maximizing, depending on the regime of the supply/demand curve we're on. This is supercharged when you consider the diminishing marginal returns to wealth.
Without the ability to form a union, or wage protection, workers are going to be racing to the bottom.
The only people that have the money to compete have no desire to put workers first. They are just trying to establish a monopoly and drive existing, successful, more efficient and sustainable forms of transit out of business.
Its been my experience over the decades that when people say, "I can't do "x"", they really mean, "Doing "x" is going to be really, really hard and I don't want to work hard."
Second, you're right in part, I don't want to build another uber, but not because its hard work (I like hard work). It's just that ethically Uber is pushing our country in the wrong direction, furthering our dependence on private individual transit, while further burdening the worker and the environment.
Uber and Lyft became so popular precisely because there are so many insensibly-regulated jurisdictions that made even this start-your-own-taxi-service illegal in order to create artificial scarcity. Highly-regulated medallion taxi services suck - both independent taxis as well as Uber are a threat to them because they're comprehensively better for customers. You literally have to legislate good service away for medallion taxis to work. And that's exactly what AB5 was.
If we don’t allow artificial scarcity/restrictions on number of cars on the road, maybe we should stop subsidizing fossil fuels too.
Impose a revenue-neutral carbon tax and you’ll address the externalities by encouraging more carbon efficient travel. Medallion taxis are a solution to exactly nothing.
AB5 has nothing to do with climate change. It’s grubby cartel-building disguised as labour-championing policy.
Here you have a system of ruleset 1 being applied to one group, and ruleset 2 being applied to another. The CA legislature passed AB5, which changed who ruleset 2 to applied to in a very arbitrary way. Prop 22 said, "oh, add this subgroup to 1, permanently, regardless of what the legislature does with anything else". Per my orginal comment, that's not an improvement, even you believe as you do.
People in that factory worked there of their own free will.
Children working in mines[2] also did so of their own free will.
It is the fondest dream of many a libertarian to take us back to those days, where people could work freely, without government interference.
[1] - https://en.wikipedia.org/wiki/Triangle_Shirtwaist_Factory_fi...
[2] - https://rarehistoricalphotos.com/child-miners-lewis-hine/
Today's companies pay employees hundreds of thousands while enticing them with onsite massages and ping pong tables.
People have choices and it’s thanks to a healthy, diverse job market, not due to government intervention.
You want to help workers? Go ahead and build companies that offer well paid, decent jobs. Don’t rob people of their best asset: choice.
We're talking about people not even getting health care coverage, and who may actually be losing money on the balance, due to the depreciation of their cars, insurance premiums, maintenance, and other costs which they, rather than their employer, have to bear, thanks to Prop 22.
The point I was making, however, was not about Uber drivers specifically, but about the position that as long as an arrangement is freely agreed to it's ok.
That attitude leads to all sorts of exploitation. Uber's arrangement with their drivers is just the tip of the iceberg. Amazon's exploitation of their warehouse workers is a related example, with much worse done in countries that have no labor or workplace safety laws.
But more to your point: are you sure you know better than the people entering arrangements if they are exploited or not? Are you sure you are taking into consideration all their particular situation and their current life trade offs to take their decision for them? Are you sure you are so smart and all knowing that you absolutely know what this way their life will be better in the long term?
Secondly, are you sure there are no drawbacks and downsides for the society when you take away people's options through the power of law? No unexpected results or side effects? No historical precedents where this attitude backfired?
Finally, are you sure you are fighting a good cause and not helping someone else’s plans? Have you asked who and why wrote AB5? Have you asked how many exceptions it came with and how many more where added afterwards? Have you wondered if this is even proper governance?
In other words there are two consenting adults, one offering a position and one willing and eager to except it. Enter you, who wishes to get in the middle of it.
For what it’s worth, I have great compassion for someone who is stuck in a situation where they feel compelled to take a difficult, or dangerous, or Low paid job. But at the same time I Cannot muster the hubris needed, nor do I think I have the moral authority, to insert myself into two other peoples business. I believe there must be other ways to remedy the situation, that don’t involve prohibiting free trade.
The genesis of the whole issue is that Uber and Lyft are claiming people can work "under any terms they want" as ICs, but they aren't actually able to do things that ICs can do, like set their own rates and pick their own customers.
Privatize the gains, socialize the losses. The oligarchy wins again.
Everybody agrees that AB5 is flawed and needs more work. But Prop 22 let money-losing, worker-exploiting companies literally write the law they wanted and made sure nobody could change it. A referendum on AB5 would have forced discussion and improvement. This closes that off.
Prop 13 is the landmark example of a ballot initiative that set super-majority thresholds for legislature. In it's case, the ability to create new taxes-- a property which has been specifically (and unsuccessfully) litigated against: https://www.latimes.com/opinion/la-xpm-2011-dec-26-la-oe-new...
For better or worse, this is the system working as intended. The point of the proposition system is to let the people pass laws the legislature refuses to. It would be pointless if the legislature could overturn or gut propositions with a simple majority vote.
All the other statute initiative propositions on the CA ballot this year included a lower threshold than Prop 22 (ranging from 51% to 75%).
However, none of them (including Prop 22) allow the legislature to overturn it even if they achieve the threshold - only to modify "in furtherance of the original purposes" of the proposition.
AB5 passed with 80% of the vote, so requiring a lower threshold would be self-defeating.
I think most people see this as Californians rejecting this type of legislation, not asking for it to be more broadly applied.
Here is an example of professions as of September, but I know they passed additional exemptions in October as well.
https://www.wagehourblog.com/2020/09/articles/california-wag...
Instead, Prop22 acts as a generalized shield against any act of the legislature which limits or imposes specific restrictions on rideshare app businesses by requiring a 7/8th's vote and requiring that they be "consistent with the purpose" of the prop22 amended law.
"The California State Legislature may not amend or repeal an approved measure without submitting the change to voters. However, a ballot measure may include a clause waiving this protection either entirely or conditionally."
[1]https://ballotpedia.org/Laws_governing_the_initiative_proces...
Proposition 22 imposes the same 7/8th requirement across a _massive_ scope, not just the specific text amended by the proposition itself but also for any statute that prohibits ridesharing apps from "performing a particular rideshare service or delivery service" or "otherwise imposes unequal regulatory burdens upon app-based drivers". Additionally, any law that would unionize app-based drivers is similarly subject to this requirement.
The threshold is so high that the legislature is effectively barred, and rather than just having the limitation apply to the measure itself is a generalized shield against legislation.
For example: No sex offenders on ridesharing apps? 7/8ths vote required. Separate tax for road wear created by inefficient routing by ridesharing apps? 7/8ths vote. (Prop13 and Prop26 eat your heart out!) Additional liability insurance requirements for rideshare drivers? 7/8ths vote. Law requiring ridesharing apps to automatically forward user's reports of assaults by drivers to the police? 7/8ths vote.
Essentially Prop22 acts as a fairly generalized shield against new laws that would interfere with the core activity of particular set of businesses.
In addition to the 7/8th requirement all amendments or other statutes that trigger Prop22's oversight are also required to be "consistent with the purpose" of Prop22 ("...to protect the individual right of every app-based ride share and delivery drivers to have the flexibility to set their own hours for where, when, and how they work...").
And if there is a really good cause to impinge the right of 'app-based' rideshare drivers to drive whatever hours whereever, or however they want? It seems like the answer even with unanimous support of the legislature is: Tough luck, time for another ballot initiative but this time it'll have the ride-share companies spending a hundreds of millions against it instead of for it and it'll still be a sweet deal at twice the price.
Have these companies shown themselves to be such good citizens, going out of their way to protect the public interest, that they could be trusted with this near diplomatic immunity level of protection? Of course not.
However... the drafting of Prop22 does allow laws restricting app-based rideshare so long as these laws impose criminal penalties. I wonder what would happen if the legislature became as shameless at exploiting legal loopholes as Uber has been? "Overwork app-based drivers? CEO right to jail! Under-pay app-based drivers? Right to jail, right away. Driving too fast: jail. Slow: jail. You make an appointment with the rider and a driver doesn't show up, believe it or not, jail, right away." It would be quite interesting as a television drama ... but I wouldn't expect such absurdity to be a good use of our public resources. :)
If I had to bet the courts won't allow Prop22 to have quite that expansive an effect, it's simply too offensive.
The end result is that the state will inevitability end up in a pile of time wasting litigation with Uber arguing that the people of California really intended to make them as exempt from the law as they've been acting as though they were for all these years.
Honestly if a law has such variable support that both it and its complement could have majority support at any time, then why should either version have any precedence? This _is_ an example of unstable system. Passing A then ~A or passing ~A then A could have extremely varied outcomes just given random statistical variation.
Besides you saying "it gets hard to get things done" doesn't really square with the fact that the vast majority of things in most electoral systems don't jump back and forth even though there isn't any hurdle like this to keep it from happening. So it must not happen for other other reasons like being seen as someone who's just quickly flipping an old law or just throwing up votes and then counter votes just isn't very popular.
In fact, in this case the 7/8ths does _not_ apply to another proposition as the GP explained to me. So in fact there is nothing holding back another proposition next time saying the exact opposite (and it only needs the same support as this time) except the historical realization that it passed with enormous support and is backed by powerful interests.
This system _is_ stable because I misunderstood it and because the requirements to repeal are the same as to pass. If it weren't that way it really would be unstable and frankly undemocratic.
The whole episode, but especially comments here on HN: I'm getting a strong "Omelas" vibe.
Also, please bear in mind that CA legislature has already exempted wide and arbitrary swathes of industry from AB5, seemingly based on each industry's political clout. While I wish for better worker protections than prop 22 provides, AB5 was bad legislature and implemented in a less-than-above-board way.
disclosure: I do work for a gig company, opinions are my own, etc. personally I want all the workers unionized, everywhere.
Regarding 7/8 specifically, it's true that it's "not great" and it's also true that it is "better than the default".
Consider the authors' perspectives for a moment, if only to understand it. One party has a supermajority in the CA legislature, and they are openly hostile to prop 22. They didn't necessarily want an immutable proposition, but they also didn't want it to be immediately nullified. 7/8 seems like a way to guarantee that changes can be made if and only if there's broad bipartisan support for those changes.
You don't have to agree with that perspective but I think it should be said that there's a non-nefarious way to see it.
One would hope that a truly wise policy could attract bipartisan support. A faint hope these days, to be sure.
Public initiatives are far more easy to pass than legislative ultra majorities, which is why they are often used to bypass requirements for mere supermajorities in the legislature in CA.
It's true that the 7/8 out doesn't make it harder to pass change since it can still be overturned by vote of the people, but it doesn't make it meaningfully easier, either, since such an ultramajority is much harder to marshal than a simple popular majority.
Now the legislature faces the choice of letting the gimped version of AB5 stand without hitting their prized targets or repeal what’s left.
Now we have a worse law on the books that can't be removed. Maybe next time legislatures will take the time to listen to what people want and write a decent law initially.
Where did the pretending happen?
You may dislike hearing this, but it takes a lot to inject yourself into that arrangement and massively increase the cost because you want it done differently.
I recognise that it appears to create "rules for thee but not for me" for these companies, but when they are so thoroughly satisfying both their customers and their workers, you should ask yourself if forcing them into the existing regulatory framework is the right equilibrium to shoot for.
"Best way" as in: Uber and Lyft are engaged in price dumping subsidized by endless investor money while at the same time passing most costs onto "independent contractors" who are just people looking for a job in an ever contracting pool of available jobs?
The US is overwhelmingly "why should I pay for some lazy slacker with my hard earned money". And this is especially prevalent among the lower income people.
[1] A joke from the internets that goes something like "In the US everything left of literally hunting people for sport is called socialism"
No it's not fine [that taxpayers "ultimately end up paying for the social security, healthcare, and other unmet needs (lack of paid sick leave, lack of paid maternity/paternity leave etc.) of these contractors"].
The Commons have been slowly plundered. It's the working class who is suffering. Look around you, homeless people everywhere. This is digital Rentier Capitalism, which enriches the ruling classes, and parasitally sucks dry the working class.
"[R]entier incomes from ownership and exploitation of assets are continuing to grow, sucking up ever more of global income. And the state is accentuating these two mega-trends by throwing more subsidies to the rentiers while cutting benefits for the precariat, and while the silicon revolution is channelling more income to those who own the robots, creating a perfect storm of economic insecurity.
A way out of this approaching impasse would be to create a new income distribution system in which more of the rent is captured for society, and used to buttress the precariat’s living standards. In 1936, John Maynard Keynes predicted the "euthanasia of the rentier" before the end of the 20th century. It did not happen. Now is the time to do it. One way would be by building up democratic sovereign wealth funds through a levy on various forms of rent, which are neither morally nor economically justifiable."
Source: https://www.weforum.org/agenda/2016/12/the-precariat-populis...
Look how SF voted on Prop 22. Doesn't reflect normal voting patterns against a regressive tax https://electionmapsf.com/
Uber could either burn even more secondary-offering cash to pay for it, or charge to passengers what that ride costs. Only people who hire private drivers with Uber would pay those costs, not "everyone" in a flat way. People who ride Uber more would pay more.
(And maybe, once we realize the actual cost chauffeurs for rent & private transportation, one can start paying more attention to housing patterns, sprawl, public transportation etc.)
Yes, and that stuff costs money. It doesn't come out of the profit margins, of which there are virtually none since the market is so competitive. It instead manifests as price increases.
> Uber could either burn even more secondary-offering cash to pay for it, or charge to passengers what that ride costs. Only people who hire private drivers with Uber would pay those costs, not "everyone" in a flat way. People who ride Uber more would pay more.
Yes, and people who ride UberX aren't billionaires. They're white collar workers, families, even other Uber drivers. And it isn't just Uber rides, it's also UberEats. Food delivery isn't just used by the uber-rich. If you're in the middle tax bracket in America and don't own a car, odds are that you've used ridesharing at least once. If you're in that same cohort, odds are you've ordered food or groceries on one of these platforms, especially during the pandemic.
As is the case with many of these issues, the underlying cause is never examined, but only attempt to patch the symptom.
Having a functional social safety net basically moots the issue of classifying employees.
I don't know why you would want to change the law now to a state that would be better in this area if you had a law you would like, but which doesn't exist and for which there is very little public or institutional support.
It would seem to make more sense to change this law as part of implementing that other law, if and when support for that could be built.
Otherwise, its kind of like abolishing a hypothetical law mandating certain minimum decency standards for owners treating slaves on the basis that slavery shouldn't exist in the first place without actually abolishing slavery.
Employment classifications are a hindrance whether the state is footing the safety net bill or not.
The law change was when app drivers were ruled to have to be employees. That is the status quo that was change.
Prop 22 merely reverts the situation back to the previous status quo, that the drivers preferred. (the majority of drivers supported prop 22)
Free to be forced to work off medical debt because they didn't have health insurance, yeah?
In addition, Prop 22 also gave drivers health benefits from the employer
Free to make our own choices and support the consequences like adults, not children.
This FREEDOM is what America was built on and what keeps it enduring.
Does the existence of minimum wage laws abrogate your "FREEDOM"?
> with no health insurance, no maternity leave to speak of, no safety nets, no guarantees in the form of liveable minimum wages...
Many of those are "going after private companies".
If you desire safety above freedom, you deserve neither - (loosely) said somebody much smarter than me.
I've lived without that freedom and it was horrifying. I would never go back. I understand not everybody prefers it so that's why I am happy you have the choice to be an employee, but please do not deny me the choice to not be.
Ah yes. How can one forget about the great freedom of slavery, exploitation of the Chinese, back breaking labor of miners etc. etc.
> If you desire safety above freedom, you deserve neither - (loosely) said somebody much smarter than me.
That quote was in no shape, way or form about healthcare or maternity leave
> I've lived without that freedom and it was horrifying.
You've lived... without which freedom exactly?
I lived without ANY freedoms. Taken away by the (communist) government in exchange for the promise of safety, wages and lots and lots of benefits. Of course, we got neither.
I am really replying to the statement that you made: "That "myth" is what America was built on and what made it great. "
> I lived without ANY freedoms. Taken away by the (communist) government
Ah yes, because there are exactly two possible modes of living in this world: communism and corporate cronyism called FREEDOM in the US.
Meanwhile there are charity orgnizations that used to go to the poorest regions in Africa to provide free healthcare. And then they stopped doing that and started doing that in the US. Because FREEDOM.
Riddle me this: why would the wealthiest nation in the world needs charity orgs to provide healthcare for its citizens? Something that no other developed nation in the world does. How is that FREEDOM?
“Drivers and labor groups opposed Prop 22, saying it would allow companies to sidestep their obligations to provide benefits and standard minimum wages to their workers even as they make billions.” From https://www.theguardian.com/us-news/2020/nov/04/california-e...
You seem ill-informed on the issue. Prop 22 succeeded.
We should be able to vote on props in chunks, not as an entire atomic unit. We should be able to say yes to the prop but no to 7/8.
It also seems a bit disingenuous to say this is allowing an industry to write its own laws. It's just an ad-hominem - who cares who wrote the law? It's the content of the law that is important, and the process that it goes through to pass. In this case if it is voted on and approved by the public, that seems like a perfectly legitimate example of direct democracy.
(Whether you think direct democracy is a good idea for nuanced policy decisions, or whether what amounts to a constitutional amendment that can't be changed by the legislature is a good process for regulating a fast-changing new industry, are separate questions. Those are very valid concerns IMO. But that has nothing to do with the arguments you brought up).
Edit: and thinking about a precedent that this sets, I see that differently as well. AB5 was pretty clearly a bad law, and the legislators behind it completely shut off all negotiations with rideshare companies and were intent on playing hardball instead of coming up with a compromise. It was clearly all about retaliating against these companies that these legislators didn't like, with no thought given to how it would actually work or what would be best for constituents (as evidenced by just how many other industries, from journalists to musicians, were caught in the crossfire and had to be exempted one by one).
Given that, I think this sets a precedent to legislators that they actually need to do their jobs. They need to do the hard work of designing practical laws that will actually work for all of their constituents. Their job is not just to make bold symbolic gestures to fire up the most extreme members of their base, and if they do and they insist on doubling down on bad policies that work against a large number of their constituents best interests, it can backfire like it did with prop 22.
> Earlier this month, before California users of the app could call for a ride, they had to “confirm” they’d seen a message that described how wait times and prices would rise if Prop 22 wasn’t passed
> Last week, Uber users complained on social media about in-app notifications stating that “Prop 22 will save lives,” in an apparent violation of Apple’s app developer agreement
> “Almost every time we log on, we are fed more one-sided information to pressure us into supporting Prop 22,” Ben Valdez, a driver for Uber and one of the plaintiffs in the case, said in a statement. That includes in-app videos of drivers speaking about why “Prop 22 would make a difference,” reinforcing Uber’s stance that the measure should pass.
https://www.theverge.com/2020/10/22/21529082/uber-drivers-la...
Maybe we could disagree on whether this was a misinformation campaign, but it's still certainly not coercion. Still doesn't even seem like misinformation to me, the reality was that every driver who did not want to work full-time on the company's schedule would lose the ability to work if AB5 stands. (And if the companies shut down operations altogether in CA or demand took a big hit due to higher prices, then some or all of the rest of the drivers would lose their jobs too). I don't see how advertising that to drivers is dishonest.
https://en.wiktionary.org/wiki/if_it_looks_like_a_duck,_swim...
And again, a threat implies it is done maliciously. You think it would be better if the companies just stayed quiet, and then just out of blue one day said "sorry we're shutting down operations, you're all out of jobs"?
Persuasion via force is exactly in line with the definition that you gave.
It's hard to avoid the conclusion that the California Assembly brought this situation on the citizens by writing a bad law.
The CA law was created directly to change Uber, Lyft, etc and was backed by lobbying groups with lots of funding. So this exemption being funded by Uber is just as bad.
I’d rather laws be created based on actual first principles with goals to help the people. I think this ping pong game of lobby/counter lobby is not good for society.
They were free to not participate in any of that, just as anyone else.
If you take on a job from a customer and it has certain terms to be paid, and you agree to those terms, that isn’t coercion: it’s work.
It’s possible that you view the very nature of the societal work-for-money as coercive, which has its own argument, as people need food and shelter to survive. If that’s the argument, make that one. In that’s not the argument for this being “coercive”, however, then I can’t really see it, as they could have simply not done the thing you claimed they were being coerced into doing.
They’re independent, remember: they can just not sign in to the app if it demands they do things with which they are uncomfortable.
Then why did people need so much money to make it pass if it is a good law most people like? Because there is so much misinformation going around about prop 22! Even in this thread most people still think that prop 22 means drivers wont have healthcare or minimum wage, meaning the Californian union lobbying got to most of you. They don't need money to spread misinformation, they just go to their journalist friends and gets biased articles written for free. How many articles were written which mentioned all the benefits prop 22 gave drivers? Not many, most just said it was so Uber could continue to oppress workers.
Now it’s just disruptively regulating the labor market in random ways while also having a list of exceptions so long no one can keep track of it?
Why not just repeal this law?
I don't think Congress can write bills that are harder to repeal, but I know some states can. There are also states that abuse their own constitutions to accomplish the same thing, for example if a supermajority is required to amend the constitution.
1. https://calmatters.org/politics/post-it/2020/10/california-a...
- Bill can undo bill
- Ballot measure can undo ballot measure
- Constitutional amendment can undo Constitutional amendment
so we still have proper inverses.
I suspect this is not the end of this fight but hopefully if it comes up again, the legislature will be more thoughtful about crafting a bill.
In the words of one political science professor:
> “I’ve looked at a lot of ballot measures over the years,” said Moylan, adding that a two-thirds majority is common.
> But a seven-eighths “super, super, super-duper majority,” she said, “is new as far as I’m aware.”
https://calmatters.org/politics/post-it/2020/10/california-a...
> By default, a law enacted by ballot measure can only be changed by another law enacted by ballot measure. The exception to that rule: If crafters of the initiative explicitly say otherwise. No surprise, many ballot measures do not say otherwise. Compared to that default, Prop. 22’s high bar for amendments actually gives the Legislature more influence than the norm.
Obviously had to be more than simple majority since its purpose is to directly override AB5 and the state legislature.
So, while 7/8th is a very high threshold, it still means that it is theoretically possible for the legislature to draft new labor laws that override Prop 22.
The state Assembly screwed up. When you pass a law that affects so many ordinary people, you better be sure that's what they want. Instead of a practical solution, AB5 came across as just meddling.
The reason we have a representative democracy is because sometimes legislators can make decisions that might be different from the typical voter who has not spent extensive time thinking about the issue.
> such that a small number of people wield disproportionate influence and drive the legislature against what the people want
Much better to have Uber wield its disproportionate influence to display push notifications telling me to vote for Prop 22 every day leading up to the election.
Drivers can't be on-the-clock for two employers at the same time. So drivers who use both Uber and Lyft would have to choose. That means the customers outside of major urban centers would be less likely to find a driver nearby, because they may be looking in Uber and the driver is on-the-clock with Lyft. It seems like the effect would end up being monopolistic because the network effects would be even stronger than they are now.
That would be compounded by the lack of drivers. Market stickiness of the employment relationship would drive the equilibrium of drivers down, wait times up, prices up, and riders down.
Mothers Against Drunk Driving endorsed Prop 22. If the state Assembly didn't see that one coming, they really screwed up.
This logic makes no sense at all. For example, everyone wants a bunch of free money - should the Assembly pass a ton of bills that write blank checks with no budget changes to back them up? Everyone loves artificially low property taxes for existing residents, and that's been an unmitigated disaster for the state. The Assembly's job is to pass bills that positively benefit California as a state and as a society long-term. Sometimes that means certain groups will not be happy with the bills. It is extremely dubious to claim that Prop 22 is definitely a good thing for California and a strong society.
While also ensuring that what they're passing is what members of their state want. If they're not sure, you should not pass that thing. If the state needs the benefits of that thing (and that need is backed by research), then they should go about finding another way to acquire the benefits that has public approval. That's the entire point of a democracy
It's simple. A lot of people like app-based driving, both customers and drivers. Some people don't, like professional full-time drivers who are trying to use it for their primary income. The Assembly failed to communicate why AB5 was a good balance between those needs, and as far as I can tell, it was not a good balance.
Voting for this would be an altruistic act that would come out of people's wallets. No surprise that this passed easily.
Except if the only jobs available are awful and don't actually pay enough to have a decent standard of living. You seem to be assuming that more available jobs of any kind = better for workers over time, but a quick review of the US labor market over the last 30 years shows this isn't really the case at all. I'm also not sure why you're bringing Japan into this discussion - its economic, demographic, and societal conditions are so different from the US that it doesn't make much sense to use it as a comparison.
There are different levels of coercion. After all, even a literal slave doesn't have to work -- they can just allow themselves to be beaten to death. But given the choice between being beaten to death and working, most people choose working.
But the fact is that even people who aren't slaves still have to have a place to live and something to eat. In the 1800's, lots of white people in the North weren't legal slaves; but they were "wage slaves" in factories -- they worked 11 hours a day, 7 days a week, for just enough to have a roof over their head and food in their stomachs; and if they got sick or injured they were just out of luck.
The idea that all of those people were "opting in" to that kind of life is preposterous. They were being coerced to work by their physical needs; and the Market, recognizing this, offered them the smallest amount better than "homeless and starving" that they could.
Obviously things are better now than they were in the 1800s, but only because we have laws against "opting in" to bad jobs. As soon as those laws are taken away, the Market will ensure things go back to the way they were.
Uber and Lyft have done many things differently than traditional taxi companies; but one of the things they've done is make an end-run round the labor laws that stop the Market from coercing people into dead-end jobs.
The only other way to prevent that kind of coersion is Universal Basic Income. If employees can walk away from a job that's dangerous and pays poorly, then the Market will make sure employers offer more reasonable conditions.
You can always try to argue that the lowest income earners deserve more. Who is to judge their life is too deep in "survival mode?" Uber has literally been a way out for many of them (earn that extra income on their own schedule).
PS: I also think UBI is a fantastic idea and a great way to avoid all these expensive discussions and campaigns about what to do. UBI would enable the elimination of so much costly regulation while solving this underlying discussion of people in "survival mode."
Do you mean for Uber and Lyft, or for 19th-century factory workers?
I absolutely think the 19th century factory workers had it better than the 19th century plantation slaves. Exactly where we draw the line for "coercion" matters less to me than the recognition that such a lifestyle still wasn't "voluntary": they were forced into doing something nobody should be forced to do.
I don't really know whether Uber or Lyft reach the level of coercion at the moment; but unless there's something to prevent it, the same thing will happen eventually.
> You can always try to argue that the lowest income earners deserve more. Who is to judge their life is too deep in "survival mode?"
I like John Rawl's "Veil of Ignorance": https://fs.blog/2017/10/veil-ignorance/
The step below "19th century factory work" is subsistence farming. Slavery is still categorically different.
These people aren't slaves to the system. They willingly are seeking their own self interests on their own time. They can quit tomorrow if they wanted to. The simple fact that they need money is irrelevant. They aren't some serf subservient to these Gig businesses. The simple fact that they have a car and a tank of gas alone goes to show they can literally go anywhere and get a better/stable job instead.
Wage slavery is when people essentially become serfs. Nobody in the US is even close to a serf. Even if they go homeless, there are plenty of homeless people that still get by every day and have the capability to move elsewhere for work. They aren't forced to work at mcdonalds until "master says so."
But this is also the same sort of logic that leads to conclusions like "taxation is theft": same thing, you either pay your taxes or you get punished, so it's not a real choice.
(As an aside I do have hopes that UBI can be a big reduction in this power imbalance.)
Uber can now legally hire people without paying them benefits, there are lots of employers looking to do the same.
Just because it is a voluntary transaction does not mean it is fair or should never be changed. Same reason why I think a $7.25/hr federal minimum wage is permissible, even though it might proscribe some voluntary transactions.
Uber and Lyft only pay for the time a passenger is in the car, what is called engaged time, not for time with the app open waiting for customers or for driving to pick them up.
Given how many drivers they have, studies in california estimate that up to a 1/3 of time drivers are not engaged, and thus not earning, just driving around clogging the streets or parked, and make as little as $5.64 an hour.
Maybe you don't care about paying people poverty wages so they can never do better, but even if you are a sociopath who lives only for yourself, whose tax dollars do you think subsidize folks who can't afford rent, food, health insurance etc?
https://laborcenter.berkeley.edu/the-effects-of-proposition-...
In theory, yes. In reality, no.
It's important to maintain entry-level jobs that don't require advanced English skills, credentials, E-verify, or that allow self-scheduling.
The US is the land of opportunity. Let's keep it that way, especially for people who want to work.
This is vastly different than say working 20 hours a week at Walmart and another 20 at Costco.
Think about this: if drivers were “employees” who then logically could only work for one (at a time) how would a competitor enter the marketplace if driving for the new guy prohibited you from also working for Uber? If the new player has insufficient ride volume it’s a huge barrier to entry.
The fact that drivers themselves seemed to reject this just shows what a bad idea this is.
I mean what’s next? Overtime? Making it hard to “fire” drivers?
And as for a notion of a minimum wage for drivers, if they for 3 different companies in an hour who pays that?
Don’t follow NYC’s example of steadily recreating the taxi medallions system (eg driver quotas and tax measures to drive the cost up; Uber is essentially twice the cost it was 5 years ago).
Otherwise it's just a huge externality being leveraged on the rest of us.
You mean like prop 22?
I also think it will not end up mattering much because the unit economics of the rideshare companies are so bad.
If they had gone along with AB5, they would’ve had cover to say to their investors “we need to make some expensive changes but it’s not our fault.”
As it stands, they’re still going to be hemorrhaging money, but now the question will be “you literally wrote your own law and you STILL can’t turn a profit?”
Most of all, it sets a very bad precedent in terms of signaling to other rich companies that amending Calif law to suit your needs is relatively easy and affordable.
I also don't think direct democracy lost here. Most people don't want Uber prices to go up. Democracy always sucks for the minority / people who don't have voting rights.
I'm a brit so luckily for me, a lot of the issues in california don't really apply here (drivers have healthcare because everyone here has healthcare etc). It's unfortunate that we have no direct democracy, but do have good safety nets (at least comparatively). Meanwhile Cali has no such nets but does allow majority rule in this way.
I actually also like the Uber model because its honest (between the participants at least) . I hardly ever used taxis before, not just because of the price but also because of the service. "Your car is 10 minutes away" actually meant "your car has to complete 3 other 20min journeys before coming to you". "about £10" meant "£26 after a weird journey and no we don't take credit cards or give change". I imagine the same applied for drivers: people would misbehave in your car because there was no penalty for doing so. Dispatchers favoured other drivers because you were new.
The whole thing was a race to the bottom for everyone. Uber with a rating system and an algorithm that minimises waits has fixed that issue. That's their "killer feature" to me.
But I can see how people have issues with their model.
It is almost cute that we are trying to pass or block protections for a workforce that won't exist in 5 years.
I don't mean the self-driving meaning that keeps getting reinvented every couple years to kick the can down the road. I mean the car is driving itself without a driver or remote driver in the majority of circumstances such as a rainstorm.
https://www.forbes.com/sites/alanohnsman/2020/10/08/waymo-re...
Pretty sure they chose the area because of sunny skies and lack of rain, so if that’s what you consider a gimmicky route that’s fair.
A commercial fisherman is less worthy of being protected than a Lyft or Uber driver? You've got to be kidding me.
---------------
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm...
Exempted fields:
Professional services that include:
(A) Marketing,
(B) Administrator of human resources
(C) Travel agent services
(D) Graphic design.
(E) Grant writer.
(F) (i) Fine artist.
(G) Services provided by an enrolled agent
(H) Payment processing agent through an independent sales organization.
(i) Still photographer, photojournalist, videographer, or photo editor
(ii) Digital content aggregator
(J) Freelance writer, translator, editor, copy editor, illustrator, or newspaper cartoonist
(K) Content contributor, advisor, producer, narrator, or cartographer
(L) Licensed esthetician, licensed electrologist, licensed manicurist, licensed barber, or licensed cosmetologist
(N) Appraiser
(O) Registered professional foresters
(1) A real estate licensee
(2) A home inspector
(3) A repossession agency
(A) Recording artists
(B) Songwriters, lyricists, composers, and proofers.
(C) Managers of recording artists.
(D) Record producers and directors.
(E) Musical engineers and mixers engaged in the creation of sound recordings.
(F) Musicians engaged in the creation of sound recordings, subject to the below.
(G) Vocalists
(H) Photographers working on recording photo shoots, album covers, and other press and publicity purposes.
(I) Independent radio promoters.
(J) Any other individual engaged to render any creative, production, marketing, or independent music publicist services related primarily to the creation, marketing, promotion, or distribution of sound recordings or musical compositions.
(A) Film and television unit production crew
(B) Publicists who are not independent music publicists.
(a) A person or organization who is licensed by the Department of Insurance
(b) A physician and surgeon, dentist, podiatrist, psychologist, or veterinarian
(c) lawyer, architect, landscape architect, engineer, private investigator, or accountant.
(d) A securities broker-dealer or investment adviser
(e) A direct sales salesperson
(f) A manufactured housing salesperson
(g) A commercial fisher working on an American vessel.
(h) A newspaper distributor
(i) An... international exchange visitor
(j) A competition judge
Your argument is intellectually dishonest.
It's like saying that FAAMG aren't important to the S&P500 because they are only 1% of companies in the index, totally ignoring capitalization.
I don't live and california and if you guys want to kill the tiny amount of labor laws you havez do whatever. But for some reason people in my country still think the US is not totally bonkers and these changes influence other countries.
People died for these workers rights, worker abuse was a fact, repealing labor laws is just ignorance.
I just find it so hard that many Americans don't see the logic in this. This is NOT a new idea. It's being done for over a 100 years in many modern nations. Employee healthcare is only an American thing AFAIK. It's a shitty deal for both employers and employees.
My takeaway is that neighborhoods without access to public transit and where people still need to commute to work voted yes.
Those are neighborhoods with some of the highest concentration of affluent tech workers, even if there are other expensive neighborhoods.
Many other areas of the city without public transit voted no.
I'm not defending the gig economy, but I'm sure that if these companies were forced to employ all their workers as FT employees, they would be inviable.
Then they should be inviable. Why would you allow a few dozen people to make billions off the backs of gig workers?
If the state wants to provide a social safety net, it should provide one.
It shouldn’t pass a law that fucks Lyft’s business model into unviability, say “if you don’t want to comply with California’s laws you can stop operating in California” and then go surprised pikachu face when Lyft stops operating in California, as almost happened a few months ago.
I will never drive in a taxi again, given that I have been deliberately screwed or defrauded every single time. I think you might be forgetting just how bad life was before Lyft. Lyft has saved me from the atrocious business model of taxis, which is based on screwing customers who have few or no choices.
Again, we should just have a social safety net, like every other first world country. Don’t pretend rejecting stupid band aid fixes that the supposed beneficiaries don’t want is an attack on drivers.
Do a poll of Drivers and ask if they would rather "set their own hours and be their own boss" or have the standard benefits of a FTE.
>Lyft has saved me from the atrocious business model of taxis, which is based on screwing customers who have few or no choices.
This says something about the Taxi industry not the goodness of Uber and Lyft.
>Again, we should just have a social safety net, like every other first world country. Don’t pretend rejecting stupid band aid fixes that the supposed beneficiaries don’t want is an attack on drivers.
I don't think you understand your own argument. This is nothing but a slap in the face for drivers, a giveaway to Uber and Lyft Stockholders and a burden for Taxpayers.
I'm getting a vibe that this may be the end of California dominance.
But this decision has made me complete reconsider it.
I almost want there to be some kind of test to see how informed people are that somehow weights their votes. It could just be a short multiple quiz with questions submitted by each side or made by a third party and approved by each side. Just to verify that people actually know what they are voting on and are not just making some default decision based on whichever ad they saw or whatever.
Please don't. This was not an example of direct democracy. Direct democracy is more than simply casting your vote once in a while.
A good start could be to address this issue:
> The companies, along with Postmates Inc. and Instacart Inc., collectively contributed around $200 million to support Proposition 22
edit: Also, I find this approach to direct democracy quite interesting: https://en.wikipedia.org/wiki/Citizens%27_assembly
If you want to read about a textbook example of under-informed voters getting more than they bargained for, look no further than [0] (or well, the "Brexit"). A national-conservative party wanted to limit immigration to Switzerland and put that up for decision. The Swiss voted in support of it but the issue is ... immigration is part of a treaty with the EU that is protected against such "cherry-picking" by a so-called "guillotine clause" [1]. Cancelling or failing to renew any part of the treaty voids it as a whole[2]. The government eventually implemented a very toned down version to avoid running afoul of the treaty because among other things that would have affected the other agreements on air traffic, road traffic, agriculture and science and more (see "Implementation" in [0] again).
[0] https://en.wikipedia.org/wiki/2014_Swiss_immigration_initiat...
[1] https://en.wikipedia.org/wiki/Guillotine_clause
[2] https://en.wikipedia.org/wiki/Switzerland%E2%80%93European_U...
Given the history of the US in voter suppression, you not seeing the irony, is just fascinating.