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California Proposition 22

Imperialist Democracy on Ugly Display in California

The Workers' Centre of the Communist Party of Canada (Marxist-Leninist) is devoting this issue of Workers' Forum entirely to how the network companies, Uber, Lyft, Instacart, Postmates and DoorDash, have acted in California to legally deny network workers their status as workers. They did this using "Proposition 22," which passed November 3. The aim of Proposition 22 is to give the network companies the legal authority to get away with super-exploiting network workers with impunity. The network companies operate internationally and they have combined forces in cartels and coalitions to push their narrow private interests, including their refusal to provide even a minimum wage or compensate their drivers for work done. Based on their achievement in California, they have now made it clear that they expect to extend these efforts. "Going forward, you'll see us more loudly advocate for new laws like Prop 22," Uber CEO Dara Khosrowshahi declared.
 
Drivers for network companies, also referred to as gig workers, are already a super-exploited section of the working class. They have been organizing for several years in many countries, including Canada, to defend their rights. Actions included strikes against Uber and Lyft on March 25, 2019. In May of that year, drivers organized collectively and held a day of action with strikes against Uber in at least 10 U.S. cities and on five continents.

In California, in particular, drivers have formed their own organizations, such as Rideshare Drivers United (RDU). RDU was a main force in the 2019 actions and has grown to about 19,000 members. Individuals have taken initiative to join with others to create their own networks and Facebook pages to communicate with each other and assist in solving problems and countering the companies' unjust actions against them. One San Francisco driver, for example, developed a contact list of 4,000 drivers he directly knew -- quite an accomplishment given the transitory nature of the work. These workers, many of them Yemeni and other recent immigrants, worked to strengthen their collective efforts to defend their rights.

These organizing drives were largely responsible for the passage of California Assembly Bill 5 (AB5) -- a state law classifying rideshare and delivery drivers of the network companies as employees, not "independent contractors." AB5 puts the burden of proof for classifying individuals as independent contractors on the hiring entity. AB5 entitles workers classified as employees to avail themselves of California's minimum wage laws, sick leave, and unemployment and workers' compensation benefits, for which companies must pay payroll taxes

AB5 was signed into law on September 18, 2019, and came into effect January 1, 2020. Uber and Lyft responded by refusing to abide by the law or court injunctions requiring them to classify the workers as employees. Drivers took action by organizing demonstrations in San Francisco and Los Angeles. The companies then formed their own cartel to have their own law, Prop 22, passed through a corrupt electoral process on November 3. They hired "labour" lawyers to write the Prop 22 legislation for the November 3 referendum in a manner which specifically favours their private interests in opposition to the interests of workers. The target of the legislation is clearly spelled out in Prop 22:

"Notwithstanding any other provision of law, including, but not limited to, the Labour Code, the Unemployment Insurance Code, and any orders, regulations, or opinions of the Department of Industrial Relations or any board, division, or commission within the Department of Industrial Relations, an app-based driver is an independent contractor and not an employee or agent with respect to the app-based driver's relationship with a network company."

The network companies demand the right to force individual workers to sign a company contract before selling their capacity to work to the company and beginning work. Prop 22 reads:

"A network company and an app-based driver shall enter into a written agreement prior to the driver receiving access to the network company's online-enabled application or platform." The contract denies the right of the contracted workers to claim their rights individually outside of what the contract declares or to unite with other contracted workers to defend their rights collectively.

To consolidate the legislated tyranny and to deny any chance of it being overturned, the Prop 22 legislation reads in subdivision (a):

"After the effective date of this chapter, the [California] 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." (Emphasis added.)

To make the point clear that tampering with the legislation is not permitted, Prop 22 reads:

"No statute enacted after October 29, 2019, but prior to the effective date of this chapter, that would constitute an amendment of this chapter, shall be operative after the effective date of this chapter unless the statute was passed in accordance with the requirements of subdivision (a)."

In other words, any amendment or tampering with the basic tenet of Prop 22 that network workers are not really employees and must accept the legislated terms of employment to work requires "seven-eighths of the membership concurring." Prop 22 exempts network companies from AB5 that requires companies to grant workers employee status based on an "ABC test." The test declares a worker is an employee, rather than an independent contractor, "if his or her job forms part of a company's core business, if the bosses direct the way the work is done or if the worker has not established an independent trade or business."

The drivers organized broadly against Proposition 22 and the lies and disinformation spread by the companies, claiming it would benefit the workers. This included demonstrations calling on people to vote no, drawing more forces into the organizing efforts and reaching out to the public with educational materials.

Among their demands are: Set hourly minimum pay matching New York City's $27.86 per hour before expenses, the right to organize without retaliation and recognition of independent organizations of drivers to negotiate for workers. Indicating their concern for the public and environment they also asked the networks to show the complete fare breakdown with Uber or Lyft's take on the passenger's receipt and set emission standards for all new vehicles added to the platforms. In this manner the drivers are striving to take up their social responsibility to defend their interests and that of the public. The network companies, on the other hand, are fighting for the opposite, including by failing to provide COVID-19 protection.

Prop 22 is a means to criminalize organizing efforts while also providing a constant supply of vulnerable workers to exploit. Its aim to enshrine in law that the companies have no social responsibilities of any kind is not going to be accepted by workers anywhere and will be fought tooth and nail. The workers' movement in the United States, Canada and internationally is fighting for justice and modern arrangements which affirm the rights of all. The workers' movement does not recognize the definition of rights said to be legal by the corrupt ruling class which is in contempt of both the word rights and the conception of rule of law. A right is a matter of making the claims that human beings must make to affirm their humanity. If it is not even seen to be just, it will be defied.

The fact that the coalition of network companies Uber, Lyft, Instacart, Postmates and DoorDash  banded together in California to write and pass the legislation to block organizing efforts and ensure a constant supply of vulnerable workers, indicates they will do a similar job in Canada where the oligopolies are already acting to get legislation in their favour through parliaments and legislatures. Working people are setting an example by stepping up their resistance and increasingly organizing to reject the actions of narrow private interests like Uber and Lyft. They are taking up their social responsibility to defend the rights of all and striving to take the country in a new direction.

Workers' Forum is at the disposal of the organizing efforts of all gig workers.

(Photos: Rideshare Drivers United, Gig Workers Rising, Mobile Workers Alliance.)


This article was published in

Number 82 - December 3, 2020

Article Link:
California Proposition 22: Imperialist Democracy on Ugly Display in California


    

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