California Uber, Lyft Drivers Take Step Toward Bargaining Table

California ride-hail drivers said Tuesday they are a step closer to establishing a union that — if certified by the state — must be recognized by Uber and Lyft for collective bargaining under a new law.

The California Gig Workers Union requested state regulators to review whether it meets a required threshold of support among at least 10% of active drivers for app-based transportation companies. The first-of-its-kind petition kickstarts a process that could eventually require the rideshare giants to negotiate working conditions and benefits with the union.

At a press conference in Los Angeles, drivers said they seek a greater voice on the job to improve fairness and transparency on issues such as compensation and sudden suspensions from the platforms. Uber and Lyft net multibillion-dollar incomes while pushing many costs and risks onto workers who barely scrape a living behind the wheel, they said.

“Together we can win better pay, safer working conditions and real protection for gig workers across California,” said long-time driver Hector Castellanos, a 56-year-old Antioch resident who has organized fellow gig drivers for years.

Castellanos said he was unable to work for months after a 2017 accident that required him to undergo shoulder surgery. His daughter dropped out of college to help pay the bills, he added.

“I know my story is not unique. So many drivers for Uber and Lyft have been left struggling after getting hurt on the job,” he said.

Last year, California became the second state in the nation to grant an estimated 800,000 rideshare drivers a legal path to bargain collectively through AB 1340, which the Service Employees International Union sponsored.

Uber, Lyft and other app-based companies have fought to keep drivers classified as independent contractors, who are excluded from federal law granting employees the right to unionize and earn minimum wage, overtime pay and other protections.

The rideshare companies, which initially opposed the state measure, agreed to support it after a deal they described as “historic” with the governor, legislative leaders and SEIU California, which reduced the companies’ insurance requirements. The law, which does not cover delivery drivers, went into effect this year.

“Today’s petition filing is exactly the democratic process the law was designed to enable — drivers exercising their right to organize if they choose,” said Zahid Arab, an Uber spokesperson, in a statement. “We remain committed to working constructively within this framework, which protects the independence and flexibility drivers have consistently said they value most.”

According to Uber, California drivers make, on average, more than $30 an hour while active on a trip, not including tips. The company said a 2024 UC Berkeley Labor Center study cited by the union that found gig drivers in the state earn a median wage of $5.97 per hour without tips when factoring in all work time, gas, and vehicle wear and tear, was misleading.

Lyft did not immediately respond to a request for comment.

The California Gig Workers Union said it submitted thousands of driver signatures authorizing it as their labor representative to the Public Employment Relations Board, which is tasked with certifying app-based driver unions. The agency confirmed it received the petition toward certification on Monday.

“This is the first request of this type that has been filed under the Transportation Network Company Drivers Labor Relations Act,” said Joseph Eckhart, interim general counsel at PERB.

The agency has 30 days to determine whether the union is supported by 10% or more of drivers. If it is, it will be entitled to receive a list of all active drivers at network transportation companies, Eckhart said. The union must later prove that at least 30% of those drivers have chosen it as their representative before it begins negotiations for labor agreements with the companies.

“This is a big moment for all of us. We are sending a message to Uber and Lyft and all the companies in the state: gig drivers will have a union,” said Margarita Penalosa, who drives full-time for both companies in the Los Angeles area. “We are tired of being treated as disposable. We are tired of the low pay. We’re tired of no support when gas prices rise to historic levels.”