Temporary Workers Not Allowed to Form Unions

Seth Sandronsky
Self-employed independent contractors in California can neither form unions nor negotiate collective bargaining pacts, but part of those conditions could soon change, according to Assemblywoman Lorena Gonzalez (D-San Diego). Gonzalez, Chair of the Assembly Select Committee on Women in the Workplace, introduced Assembly Bill 1727 on January 28 as an amendment to the state’s Labor Code. Gonzalez’s bill, which will be updated today, is called the California 1099 Self-Organizing Act. It would allow independent contractors to form employee associations that could negotiate working conditions and pay, though not to form labor unions.
“All workers should have the right to organize and collectively bargain,” Gonzalez said in an email to Capital & Main. “Our laws need to catch up to the innovation happening in our economy to ensure independent contractors have a pathway to these workplace rights as well.”

Assembly Bill 1727 would not compel employers to classify independent contractors as employees.

AB 1727 would not, however, compel employers to classify independent contractors as employees — nor would it allow these workers to form a traditional labor union or to join an existing union. That rubs Steve Smith, director of communications for the California Labor Federation, the wrong way.
“We agree with Assemblywoman Gonzalez that self-employed workers should have every right to bargain collectively, but have concerns about the approach,” Smith told Capital & Main by phone, “The problem with AB 1727 is that it basically enshrines an unfair business model that companies like Uber use to misclassify their workforce as independent contractors instead of employees.”

Nonunion workers without the right to bargain collectively get the short end of the stick, say critics of the gig economy. “Unionized workers have on average 20 percent higher wages than their nonunion peers,” wrote Evan Butcher for the Washington, D.C.-based Center for Economic and Policy Research, last September.
Uber, the app-based, ride-hailing firm, is one of the best-known businesses that rely on independent contractors. The company sells labor services by arranging for individuals to drive their own cars as personal taxis to earn income. And in early 2016, Amazon.com, the popular online retail giant, began to expand its delivery of goods with independent contractor drivers through Amazon Flex. Continue reading