Today, California Governor Gavin Newsom signed Assembly Bill 5 into law which would limit the use of independent contracts.
Newsom in a signed written statement said that the new law, “will help reduce worker misclassification — workers being wrongly classified as ‘independent contractors’ rather than employees, which erodes basic worker protections like the minimum wage, paid sick days and health insurance benefits.”
The author of AB 5, Assemblywoman Lorena Gonzalez (D-San Diego), in a written statement said, “As one of the strongest economies in the world, California is now setting the global standard for worker protections for other states and countries to follow.”
This might sound great but does Newsom or Gonzalez genuinely care about these workers or is there a more devious reason?
Here is the real reason -the Janus Decision.
In Janus vs. AFSCMF, the US Supreme Court ruled that labor unions are inherently political and that employees cannot be compelled to support them financially. What has been the result? Tens of thousands of government employees have opted out of their unions and the typical $800 to $1,200 a year they hand over to unions are gone.
Where does that money go? The vast majority of those tens of millions of dollars goes to the Democrat Party and candidates like Newsom and Gonzalez.
So by reclassifying Uber, Lyft, and DoorDash drivers as employees, what is Newsom and Gonzalez hoping to occur? According to the LA Times, Newsom stated, “the need to ensure workers in the new tech sector businesses can join labor unions.”
There you go, folks. Uber, Lyft, and DoorDash drivers can join a union because they are now employees.
What will be the result?
These companies will have to drastically raise their rates to comply with the new law, thus you will pay much more to use these services. These companies will have to dismiss tens of thousands of drivers that relied on these jobs to supplement their income or even their only source of income.
For the driver’s that are lucky to keep their jobs, what will happen to them? You can rest assured that the unions will be there to extract their hard-earned money as they are pressured to join the union. Conveniently, the tens of millions they raise will be going into these politicians political bank accounts.
Now I have no love-loss for these companies. I’m a transportation CEO and they are my direct competition. This might even help me make more money.
Even if that is true or not, the facts are this had nothing to do with protecting these drivers. It was a devious plot to fill their campaign war chests will millions of dollars at the expense of you and these drivers.
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