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Does A California Union Impact You?
The Union Era: How Does A California Union Impact You?
— By Jay Cradeur —
California just passed a law giving Uber and Lyft drivers the right to unionize. It’s a landmark moment for gig work.
However, how it plays out could be either a game-changer or a non-event. I recall when Uber and Lyft initially experimented with and then completely revamped the pay structure for drivers. This was back when we shifted from 80% of the passengers’ payment to a time-and-distance basis.
Later, time and distance were dropped, and now we have algorithmic upfront pricing. At the time, I felt betrayed. Angry. I wanted to fix it. The idea of walking off the job crossed my mind many times during ten-hour shifts on the streets of Silicon Valley and San Francisco.
Nearly a decade later, the right to form a union, to speak with one voice, is finally here.
But does it still make sense?
Who gains, and who loses?
It depends on many factors, most of which are beyond a driver’s control.
Source: hrgrapevine.com
Could A California Union Impact You?
This new law gives California drivers, all 800,000 of them, the ability to bargain collectively without sacrificing their status as independent contractors.
However, it comes with significant caveats:
Enforcement will be challenging
Platforms are already signaling opposition
And much depends on how effectively drivers organize themselves
Over ten years and 32,000 rides, I’ve seen how small changes in policies can ultimately impact everything, from ratings and earnings to who gets kicked off the platform and how riders behave. A law on the books is not a guarantee of change. The platforms know how to slow walk and litigate. The real fight begins now.
1. Scenario One: Seattle-Style Gains?
In Seattle, drivers have already seen real leverage through collective bargaining.
The “Fair Pay Standard” in Washington requires Uber and Lyft to pay at least $1.59 per mile and $0.68 per minute in the city of Seattle, with a minimum trip fare of $5.95.
Washington also mandates paid sick leave, workers’ compensation, and paid family and medical leave for drivers under a pilot that covers rideshare work. These protections were won after sustained organizing by the Drivers Union.
If California drivers move quickly, with cohesion and demand, they could negotiate wage floors above minimums, limits on arbitrary deactivations, transparency in the algorithm, and benefit mechanisms.
The scale of California’s market works in our favor: even a modest improvement per ride multiplied by hundreds of thousands of trips could yield real gains.
However, the gains would depend heavily on effective enforcement, legal support, and the willingness of drivers to strike or withdraw their work when necessary.
What no one seems to acknowledge in the Seattle situation is that the cost of ridesharing has gone up. One article I read reported a 40% increase in the price of a ride. If you want an Uber in Seattle, you will pay more than you would pay for an Uber in another market.
You don’t think Uber and Lyft are simply going to pay drivers more!
No, they are taxing the passengers. This, of course, reduces demand. Rideshare prices are elastic. This means that the lower the price, the more people use the service. Conversely, the higher the price goes, the fewer passengers there are.
Suddenly, the bus, train, or bike seems like a better option. With less demand, that means fewer rides to spread among all the drivers in Seattle. So while each ride pays more, there are fewer of them.
Who wins?
2. Scenario Two: Platform Retrenchment or Exit
The threat is real. What if Uber and Lyft decide California is no longer worth the political and regulatory cost? They might reduce service, restrict driver incentives, or cut back in cities with strong union oversight.
We’ve seen similar moves historically:
Platforms have withdrawn features
Limited bonuses
Or pulled out of jurisdictions they deem too hostile
If that happens, drivers might face fewer ride requests, longer idle times, or split with smaller apps that can’t fully support them.
The costs of compliance (legal, administrative, benefit structures) might be passed on to drivers via lower base rates, increased fees, or stricter ride acceptance rules. In that case, unionization would shift the battlefield, but many drivers might find themselves worse off before the benefits arrive.
3. Scenario Three: The Illusion of Change
This is the most likely outcome: the law passes, union contracts are negotiated, but the real impact is muted. Drivers maintain the right to bargain, but contracts are weak, enforcement is lax, and algorithmic control remains mainly in the hands of the platforms.
In this scenario, you may achieve nominal gains, such as small pay raises or procedural protections, but nothing that significantly changes your day-to-day life: you still face opaque deactivations, unpaid waiting time, and unpredictable pay splits.
This outcome will happen if the union leadership fails to demand strong terms, if many drivers don’t participate or resign, or if platforms bury enforcement behind litigation and loopholes.
4. The Power of Numbers
A union is only as strong as its members. If half of the drivers stay on the sidelines, the platforms will isolate and undercut the bargaining unit. The real leverage comes from solidarity, from the discipline to strike or withhold labor. That’s the union’s greatest weapon, driver pause.
California’s markets are vast and fragmented. Drivers in Los Angeles, San Diego, San Francisco, and Sacramento all face different conditions. Without coordination, union efforts will fracture. But with unity, the scale is intimidating. A statewide driver walkout would disrupt too many rides to be ignored.
The question: Are you willing to risk short-term earnings for long-term gains?
Many won’t. But the few who do can shift the norms.
5. Not All Drivers Are Created Equal
Unionization often brings a leveling effect. The engine that pays the hardworking driver the same base as the one who barely shows up. For drivers like me, who push to beat the curve, that flattening feels like a step backward.
I’ve always driven like a commissioned salesperson: churn more, smart more, hustle more. If contracts force ceilings, limit incentives, or cap earnings, I lose upside.
I once worked at Safeway: I pushed harder than the guy next to me, but we both got the same wage. Union protections can be tremendous safety nets, but they can also trap workers in mediocrity.
If you are a driver who craves commission, who wants to scale and outproduce, you’ll need clauses that protect top performers, carve-outs, bonus tiers, and flexibility. Otherwise, unionization might feel like a straitjacket.
Key Takeaways
California’s new union law is historic, but it does not guarantee improvement.
Much will depend on the structure of contracts, the strength of driver solidarity, and how aggressively platforms respond. Drivers like me want upward mobility. Some drivers want security.
That tension will define the battles ahead. Some will accept modest gains and safety. Others will push for complete change. And many will do nothing.
For me, I like things the way they are. I don’t need all the sick pay, vacation pay, and workers’ compensation. I never saw driving as a 9-5 job, similar to my job at Safeway.
I am an independent contractor. I work. I earn. You pay me. Simple.
I may be in the minority. Time will tell how many drivers want those benefits, and how those benefits will impact rideshare demand, i.e., the number of rides drivers can get with Uber and Lyft’s inevitable price increases.
And what impact will that all have on tips? If passengers feel like they are getting squeezed, while they don’t blame the drivers, they will be less likely to throw $5 my way.
Union power is real, but it’s conditional. It requires drivers to bet on a future that may or may not exist, to vote with their labor, and to stay vigilant. The tools are now in our hands. Whether they build freedom or cages depends on what we demand, how unhappy we are with the current situation, and how hard we push.
Be safe out there.
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