Uber Et al Campaign Against Democrat's Efforts To Classify Gig Workers As Employees
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Consumer Discretionary
Business Services
Consumer Discretionary
- A string of companies using independent contractors as drivers launched a campaign to head off Democratic efforts to classify their workers as employees, allowing them to form unions, the Wall Street Journal reports.
- The companies include Uber Technologies Inc (NYSE:UBER), Lyft Inc (NASDAQ:LYFT), DoorDash Inc (NYSE:DASH), GrubHub Inc (NASDAQ:GRUB), and others.
- The companies aim to spend over $1 million on TV and internet ads in the Washington area featuring workers who prefer the flexibility of the independent-contractor model over that of a company employee.
- Labor unions alleged Uber and other gig-economy companies exploited their workers by depriving them of requisite hours on the job to qualify for healthcare and other benefits. They have the support of Democrats in Congress and President Biden.
- “When a majority of workers want to form a union, they shouldn’t be stopped,” Mr. Biden had said in last week’s State of the Union address.
- Kristin Sharp, CEO of the advocacy group called Flex, argues, “Workers are voting with their feet and are flocking to app-based work because it gives them better work-life balance.”
- Price Action: UBER shares traded higher by 0.88% at $28.82 in the premarket on the last check Tuesday.