Gov. Gavin Newsom, D-Calif., ('The Man and His Hairdo' or 'Gov. Blowdry,' if you prefer) and the state legislature are once again meddling in free markets.
This time in favor of rideshare drivers. You may recall our past columns discussing the disastrous effect resulting from the politicians deciding to mandate wage levels in the fast-food industry.
Thanks to Newsom and the legislature, nowadays hamburger meat isn't the only thing getting crushed in a Smashburger. Your wallet is mashed, too.
And that doesn’t include the fast-food workers priced out of a job and the fastfood-outlets that have been forced to close in the wake of the state-imposed wage levels.
Fresh off that pyrrhic victory, Goldenstate political masterminds are now focused on the rideshare industry.
AP has the story, "More than 800,000 drivers for ride-hailing companies in California will soon be able to join a union and bargain collectively for better wages and benefits under a measure signed Friday by Gov. Gavin Newsom. Supporters said the new law will open a path for the largest expansion of private sector collective bargaining rights in the state's history."
Rideshare drivers aren't employees in the common sense of the term.
They are independent contractors who decide independently when and how much they want to work. They are nothing like the classic union worker: the miner, autoworker or steelworker.
A rideshare driver agrees to supply the car and the rideshare company agrees to supply the customers. The driver is completely in control of his working conditions and his working hours.
The rideshare company determines how much customers will be charged for a ride and what portion of the fare will go to the driver.
If the driver thinks his portion is too low, he’s free to contract with another company or find another job.
The new law tips the scales on this arrangement and puts the state’s thumb on the side of the drivers.
This is also a long-running controversy.
In 2019 a new law required Uber and Lyft to start giving drivers the same benefits fulltime employees received.
Voters hated that law so much it was repealed only a year later. Unions then tried the legal route. Organized labor tried to organize rideshare drivers and force the companies to negotiate through the courts.
That case went to trial and the California supremes ruled drivers are independent contractors and do not qualify for overtime, paid sick leave or unemployment insurance.
Now unions went back for a second bite of the legislative apple and passed this law.
The question becomes what’s in it for Gov. Newsom and the legislature particularly since their last foray into wages for the working man was less than successful.
The answer to that question is simple: Campaign contributions.
The unions will reward Newsom and his presidential campaign with an avalanche of campaign money.
According to Open Secrets, "labor unions spent over $280 million on politics in 2024 alone – the vast majority of that money went to Democrats."
That's why Newsom and the legislature are fine with passing a law that may result in higher fares. Their personal increased cost will be more than offset by union donations to their respective campaigns.
And the payoff isn’t coming only from the union side.
They engineered a deal where Uber and Lyft will be grateful, too.
"Newsom also signed a measure supported by Uber and Lyft to significantly cut the companies' insurance requirements for accidents caused by underinsured drivers.
Lyft CEO David Risher said in September that the new insurance rates are expected to save the company $200 million and could help reduce fares."
That's having your cake and eating it, too.
We're also guessing the tech companies are fine with the bill because it will only cause short term difficulties. In the long run they intend to replace cranky drivers with no benefit, wage-free, self-driving cars. The HAL 9000 Uber.
Union campaign contributions are why California politicians ignore the clear will of the voters and impose state mandates the voters rejected. It’s all about the money.
And if voters wind up with less money due to the decisions made in Sacramento, why that’s their problem.
Michael Reagan, the eldest son of President Ronald Reagan, is a Newsmax TV analyst. A syndicated columnist and author, he chairs The Reagan Legacy Foundation. Mr. Reagan is an in-demand speaker with Premiere Speaker's Bureau. Read Michael Reagan's Reports — More Here.
Michael R. Shannon is a commentator, researcher for the League of American Voters, and an award-winning political and advertising consultant with nationwide and international experience. He is author of "Conservative Christian's Guidebook for Living in Secular Times (Now with Added Humor!)" Read Michael Shannon's Reports — More Here.