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    California measure brings rideshare drivers one step closer to unionizing

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    More than 800,000 ride-hailing drivers in California will soon be able to join a union and negotiate for higher wages and better benefits under a measure signed Friday by the governor, 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. The legislation is a significant compromise in the years-long battle between labor unions and tech companies.California is the second state where Uber and Lyft drivers can unionize as independent contractors; Massachusetts voters passed a ballot referendum in November allowing unionization, while drivers in Illinois and Minnesota are pushing for similar rights.“Donald Trump is holding the government hostage and stripping away worker protections,” Newsom said in a statement, referring to the estimated 750,000 federal employees who are furloughed as a result of the first federal government shutdown since 2018, with the administration planning to implement another sweeping wave of cuts.“In California, we’re doing the opposite: proving government can deliver – giving drivers the power to unionize while we continue our work to lower costs for families. That’s the difference between chaos and competence,” he added.The new law is part of an agreement made in September among Newsom, state lawmakers and the Service Employees International Union, along with rideshare companies Uber and Lyft. In exchange, Newsom is expected to sign 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 $200m and could help reduce fares.Uber and Lyft fares in California are consistently higher than in other parts of the US because of insurance requirements, the companies say. Uber has said that nearly one-third of every ride fare in the state goes toward paying for state-mandated insurance.Labor unions and tech companies have fought for years over drivers’ rights. In July of last year, the California supreme court ruled that app-based ride-hailing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors not entitled to benefits like overtime pay, paid sick leave and unemployment insurance.A 2019 law mandated that Uber and Lyft provide drivers with benefits, but voters reversed it at the ballot box in 2020 with a measure known as Proposition 22. Uber and Lyft spent more than $200m in their efforts to bar app-based workers from being classified as traditional employees. Drivers and labor groups opposed Prop 22, saying it would allow companies to sidestep their obligations to provide benefits and standard minimum wages to their workers even as they make billions.The collective bargaining measure now allows rideshare workers in California to join a union while still being classified as independent contractors and requires gig companies to bargain in good faith over issues such as driver deactivations, paid leave and earnings. The new law doesn’t apply to drivers for delivery apps like DoorDash.“Trump is gutting workers’ fundamental right to come together and demand fair pay and treatment,” said Tia Orr, executive director of SEIU California. “But here in California, we are sending a different message: when workers are empowered and valued, everyone wins. Shared prosperity starts with unions for all workers.”The insurance measure will reduce the coverage requirement for accidents caused by uninsured or underinsured drivers from $1m to $60,000 per individual and $300,000 per accident.The two measures “together represent a compromise that lowers costs for riders while creating stronger voices for drivers – demonstrating how industry, labor, and lawmakers can work together to deliver real solutions,” Ramona Prieto, head of public policy for California at Uber, said in a statement.The new law arrives as Uber and Lyft continue negotiating a settlement with California and the cities of San Francisco, Los Angeles and San Diego, which sued the companies for allegedly withholding wages from thousands of drivers before Proposition 22 took effect.Rideshare Drivers United, a Los Angeles-based advocacy group of 20,000 drivers, said the collective bargaining law isn’t strong enough to give workers a fair contract. The group wanted to require the companies to report their data on pay to the state.New York City drivers’ pay increased after the city started requiring the companies to report how much an average driver earns, the group said.“Drivers really need the backing of the state to ensure that not only is a wage proposal actually going to help drivers, but that there is progress in drivers’ pay over the years,” said Nicole Moore, president of Rideshare Drivers United. More

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      ‘Stay below the radar’: corporate America goes quiet after Trump’s return

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      From vast protests and all-caps social media posts to acrimonious legislative hearings and pugnacious White House statements, Washington has perhaps never been noisier. But since Donald Trump’s return to office, one corner of civil society has been almost eerily quiet.Those leading corporate America rapidly turned down the volume after the president’s re-election. Gone are the days of political and social interventions, highly publicized diversity initiatives and donations to important causes.For months, some of the most powerful firms in the world have nervously navigated a dangerous US political landscape, desperate to avoid the wrath of an administration as volatile as it is vocal.“CEOs like two things. They like consistency and predictability,” said Bill George, former chairman and CEO of Medtronic and serial board director. “They like to know where things are going. No one can figure out where this administration’s really going, because everything is transactional.”View image in fullscreen“Stay below the radar screen,” George has been advising senior executives across the US. “Do not get in a fight with this president.”Industry leaders from David Solomon of Goldman Sachs to Dara Khosrowshahi of Uber extoled the benefits of “Trump accounts” for babies this week. It was the latest example of knee-flexing that began on the patio of Mar-a-Lago in the aftermath of Trump’s victory last November.The genuflections have been backed by big money, with millions of dollars thrown into the president’s inaugural fund by companies and executives. That started to look like chump change before long. Amazon reportedly paid $40m for a documentary about Melania Trump. Apple announced plans to invest $500bn in the US.But those moves do not appear to have bought much favor. The White House accused Amazon of being “hostile and political” following a report (upon which the company later poured cold water) that it would start disclosing the impact of Trump’s tariffs on prices. And the president threatened Apple with vast tariffs.No CEO seemed closer to Trump than Elon Musk, the billionaire industrialist behind Tesla and SpaceX, who gave almost $300m to Republican campaigns last year, and worked in the administration for months. Their explosive fallout, days after Musk’s exit, prompted the president to threaten the cancellation of federal contracts and tax subsidies for Musk’s companies.View image in fullscreenThe pair’s rupture underlined why many executives are struggling to trust the president, according to Paul Argenti, professor of corporate communication at the Tuck School of Business at Dartmouth. “The mercurial nature of this guy kind of just seeps in, and people start to realize they’re dealing with something that’s a bit more difficult.”His advice? “Proceed with extreme caution.”“Loyalty only goes one way with Trump,” said Dan Schwerin, co-founder of Evergreen Strategy Group, and former speechwriter for Hillary Clinton, who has previously worked with firms including Levi Strauss and Patagonia. “This is like doing business with the mafia: you’re not going to win, and you’re not going to be safe.”The standard playbook is clear: “You make a big splashy announcement: the details don’t matter, you don’t have to follow through, but you placate the White House,” said Schwerin. “That maybe buys you a little time and a little goodwill.“But history suggests that Trump will do whatever is best for Trump, and he will turn on you in an instant, if it’s better for him. And that is true for his friends, so it will certainly be true for a company that he has no loyalty to.”Extreme caution has become the name of the game – anything to avoid your company getting drawn into the crosshairs of this administration. But companies can’t just focus on the president: they have shareholders, customers and employees to answer to.View image in fullscreen“You can’t base everything on getting through the next four years,” said George. “Yeah, it’s going to be chaotic. Yes, it’s going to be challenging. But you better hold firm to your purpose and your values.”He pointed to retailer Target, where he served on the board for 12 years. “They were very, very big on differentiating themselves from Walmart, using diversity as the criteria – and particularly being, they called themselves, the most gay-friendly company in town.“And then [Target CEO] Brian Cornell, six days after the inauguration, abandoned all that,” said George. The chain faced a backlash – and boycotts – for abruptly announcing the rollback of diversity, equity and inclusion (DEI) initiatives. Breaking his silence in an email to employees three months later, Cornell claimed: “We are still the Target you know and believe in.”Contrast this with Costco, another retailer, which in January faced a shareholder proposal against DEI efforts from a conservative thinktank. The firm’s board robustly defended its “commitment to an enterprise rooted in respect and inclusion” before the proposal was put to its investors for a vote.“They got a 98% vote to stay the course, to stay true to what they were,” said George. “And their customer base is very conservative. This is not like they have some liberal customer base.”Argenti believes the period of strategic silence by many companies, and knee-flexing to the White House, might be coming to a close following Musk’s messy exit. “We’re at an inflection point,” he said. “There’s going to period where people realize you’re damned if you do and damned if you don’t.”CEOs of companies counting the cost of Trump’s policies are “not going to suffer in silence”, he said. “You can’t win. It’s not like you can be secure in knowing if you follow this strategy, he’ll leave you alone.”View image in fullscreen“We are starting to see the pendulum swing back,” according to Schwerin, who claimed the administration’s erratic execution of tariffs had “opened some people’s eyes” that its policies were bad for business.“I think it’s crucial that we start to see a little more pushback. Better to have a backbone than to just bend the knee.”On controversial issues at the heart of political discourse, however, George does not expect much of a shift from CEOs. “It is radio silence, and I think you’ll see that continuing. There’s not much to be gained from speaking out today.”“Stick to your lane,” he has been counseling executives. “If you’re a banker, you can talk about the economy. If you’re an oil expert … talk to the energy industry. But you can’t speak ex-cathedra to everyone else.”“Only a handful” of business figures are deemed able to stand up and make bold public statements on any issue, according to George, who points to Jamie Dimon, the veteran JPMorgan Chase boss, and Warren Buffett, the longtime head of Berkshire Hathaway.“There are certain people who are really hard to take on. Jamie’s one,” he said. “If you were president of the United States, would you take on Warren Buffett?” More

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      Trump announces $1,000 government-funded accounts for American babies

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      Donald Trump unveiled a federal program Monday providing $1,000 government-funded investment accounts for American babies, getting big time backing from top business leaders who plan to contribute billions more to an initiative tied to “the big beautiful bill”.At a White House roundtable with over a dozen CEOs, including from Uber, Goldman Sachs and Dell Technologies, Trump relayed the details of “Trump accounts” – tax-deferred investment accounts tracking stock market performance for children born between 2025 and 2029.“For every US citizen born after December 31, 2024, before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market,” Trump said.The accounts will be controlled by guardians and allow additional private contributions up to $5,000 annually. Trump called it “a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation”.CEOs from major companies including Michael Dell, Dara Khosrowshahi of Uber, David Solomon of Goldman Sachs, and Vladimir Tenev of Robinhood committed billions for employees’ children’s accounts. Trump praised the executives as “really the greatest business minds we have today” who are “committed to contributing millions of dollars to the Trump account”.Mike Johnson, the House speaker, also at the roundtable, championed the program, saying: “It’s a bold, transformative policy that gives every eligible American child a financial head start from day one. Republicans are proud to be the party we always have been. It supports life and families, prosperity and opportunity.”The program passed the House as part of a massive budget bill but faces stiffer Senate Republican resistance over the broader package. The accounts cannot be implemented as a standalone program and depend entirely on passage of what Trump calls the “one big, beautiful bill” that is “among the most important pieces of legislation in our country’s history”, claiming it’s “fully funded through targeted reforms” including welfare changes and a proposed remittance tax.However, the congressional budget office last week found the bill would also add $2.4tn to the national debt over the next decade while cutting Medicaid and food assistance programs. The CBO analysis showed the bill, which passed the House by a single vote and no Democratic support, would leave 10.9 million more Americans without healthcare by 2034.The treasury-funded accounts, previously called “Maga ccounts” resemble existing 529 college plans but with lower contribution limits – leading some financial advisers to say the Trump accounts may not offer the best investment incentives.The move is also not without precedent the United Kingdom operated a similar Child Trust Fund with government seed funding from 2002-2011 before discontinuing the program, while Singapore runs the Baby Bonus Scheme that includes government-matched savings accounts for children.Trump was optimistic about returns, saying beneficiaries would “really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future”.Johnson warned that failure to pass the legislation would result in “the largest tax increase in American history” and pushed for swift congressional action on what he called “pro-growth legislation” that would “help every single American”. More

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      The Uber campaign: how ex-Obama aides helped sell firm to world

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      The Uber campaign: how ex-Obama aides helped sell firm to worldUber sought access to leaders, officials and diplomats through David Plouffe and Jim Messina, leak shows

      Uber broke laws, duped police and built secret lobbying operation, leak reveals
      It was a Sunday afternoon in early November 2015 when David Plouffe emailed his fellow former Barack Obama campaigner Matthew Barzun, typing “Mr ambassador” in the subject line.Plouffe was working for Uber, and Barzun had been rewarded for his fundraising efforts for the US president with the plum job of American ambassador to the UK.“Hope you and your family are well. I will be in London Dec 9 and 10. Any chance you could host the event you kindly suggested with influencers one of those days? Uber, Trump, Clinton etc lots to discuss … David.”Barzun obliged. “What fun!” the ambassador pinged back. Few people turned down Plouffe when he called in favours. It was just one example of how Uber leveraged Plouffe’s reputation and his access to the Obama network to promote its agenda across Europe and the Middle East, according to documents in the leaked Uber files.The embassy staff organised an event in December built around Plouffe giving a talk on the gig economy, and they invited the business minister Anna Soubry, the shadow business minister Kevin Brennan, influential MPs, government officials, journalists and business people. More

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      Capitol rioter caught after FBI finds recording of him boasting to Uber driver

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      Capitol rioter caught after FBI finds recording of him boasting to Uber driverA 15-month long investigation resulted in Jerry Braun’s arrest on 12 April; he’s been charged with violent entry and disorderly conduct On 6 January 2021, Jerry Braun hailed an Uber in Washington DC and got in the car, nursing a bleeding eye wound. The Uber driver noticed and asked, “So, has it been violent all day?”“Well it started around, right when I got there. I tore down the barricades,” Braun bragged.The conversation, captured on video by the driver’s recording device installed on the dashboard, triggered a 15-month long investigation by the FBI. Earlier this month, on 12 April, Braun was finally arrested by federal authorities and charged with violent entry or disorderly conduct, obstruction during civil disorder, and entering and remaining on restricted grounds, according to an affidavit by Lucas Bauers, FBI special agent.January 6 ‘was a coup organized by the president’, says Jamie RaskinRead moreBraun boasted openly to the Uber driver about his involvement in the deadly riots, which resulted in the deaths of five people. When he explained he’d torn down the barricades, the driver asked, “You did? Why?”“Well, because, so we could get to the Capitol,” Braun replied.The driver asked, “Well, how’d that work out for ya?”“Well, it looks like, uh, Biden’s gonna be our president,” said Braun.The Uber driver’s tip to the authorities identified Braun as “Jerry Last Name Unknown”, according to court documents. The car dropped him off at a Holiday Inn in Arlington, Virginia; authorities searched the booking records to discover that Braun had checked in as “JD Braun” on 5 January and checked out two days later. He had listed his phone number and an address in South El Monte, California.Authorities then compared the Uber image of Braun with a California Department of Motor Vehicles photo of him. With a positive match, they began to pore over images and video footage taken on the day of the riot, searching for Braun.“Agents reviewed several images on the webpage, including one of the digital images that depicts an individual with a white beard, wearing a black face mask covering his nose and chin, black sunglasses, a black beanie hat, black gloves, and a dark colored jacket with a hood,” said the affidavit.“The individual’s white beard is coming out from underneath the black mask, and a backpack shoulder strap is seen over the individual’s left shoulder,” it added.Authorities also noticed a pocket holding a pen and paper with graphics “near the individual’s left shoulder”. Upon enlarging the image, they found the following text: “23-359-4”, “Ask For JD”, and a website, shotgunshock.com – the website of a South El Monte-based store that sells motorcycle air-suspension systems.Officials accessed the Google cached version of the site and found an email address, shotgunshock@yahoo.com – which turned out to be the same address associated with Braun’s Uber account – and a phone number that was registered with the AT&T Corporation under “Jerry Braun”, according to court documents.The affidavit included screenshots of video footage that showed Braun “physically struggling with law-enforcement officers using a barricade”. At one point, Braun is also seen with a wooden plank in his hands. “The officer body camera videos show Braun in possession of the wood plank, controlling the wood plank and maneuvering the wood plank towards law enforcement officers in an aggressive manner,” the affidavit said.“In one instance … Braun extends the wood plank and physically strikes an individual who is wearing a helmet with the text ‘PRESS’ displayed across the front (the photographer) and appears to be taking photographs with a camera,” it added.“Braun and the photographer appear to exchange words. Braun then strikes the photographer with his left hand, and subsequently strikes the photographer once more with the wood plank.”On 8 November, authorities executed a search warrant in Braun’s California residence and found clothing he appeared to wear at the riot. They also seized Braun’s cellphone, which included a selfie of his eye wound as well as text message exchanges in which Braun wrote, “Occupied the capitol”, and “Hand to hand combat”, in reference to videos he took at the riot.When authorities asked Braun if he had anything to say during the search, Braun replied, “Guilty.” Authorities then asked him what he was guilty of, to which he said, “Everything.”More than 800 people have been charged for their involvement in the riot, of which more than 250 have so far pled guilty.TopicsUS Capitol attackWashington DCUS politicsUberDonald TrumpJoe BidennewsReuse this content More

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      Engineer who stole trade secrets from Google among those pardoned by Trump

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      Sign up for the Guardian’s First Thing newsletterIn his final hours of office, Donald Trump pardoned a former Google engineer who was convicted of stealing trade secrets from the company before taking up a new role with competitor Uber.Anthony Levandowski, 40, had been sentenced in August 2020 to 18 months in prison after pleading guilty to inappropriately downloading trade secrets from Google’s self-driving car operation Waymo, where he was an engineer.The surprise pardon was remarkable for its star-studded list of supporters and its justification. “Mr Levandowski [pleaded] guilty to a single criminal count arising from civil litigation,” read the White House announcement. “Notably, his sentencing judge called him a ‘brilliant, groundbreaking engineer that our country needs’.”The single guilty count was the result of a plea bargain; the engineer was originally charged with 33 counts of theft and attempted theft of trade secrets. And the sentencing judge, William Alsup, described Levandowski’s theft as “the biggest trade secret crime I have ever seen” and refused the engineer’s request for home confinement, saying, it would give “a green light to every future brilliant engineer to steal trade secrets. Prison time is the answer to that.”Levandowski had not yet begun his prison sentence due to the Covid-19 pandemic. A hearing on the timing of his prison sentence had been scheduled for 9 February.Levandowski was a leader in the race to develop self-driving cars. He made a name for himself in the autonomous vehicle space after building a driverless motorcycle in a contest organized by the Pentagon’s research arm, Darpa, in 2004.Levandowski went on to found his own startup, 510 systems, which was acquired by Google in 2011. At Google, he helped to develop driverless cars until 2016. Upon leaving the company and while negotiating a new role at Uber, he later admitted, he downloaded more than 14,000 Google files to his personal laptop.Whether any secrets from those files made their way into Uber’s self-driving technology became the center of a bitter legal battle between the two tech giants that resulted in a $245m settlement for Google’s self-driving spin-off, Waymo, and criminal prosecution for Levandowski.The White House cited the support of 13 individuals in its pardon statement, including the billionaire Facebook board member Peter Thiel and several members of his coterie: Trae Stephens and Blake Masters, who have both worked for Thiel’s various investment firms, and Ryan Petersen, James Proud and Palmer Luckey, who have all received investments for startups from Thiel.Thiel donated to Trump’s 2016 campaign, spoke at his nominating convention, and gave a press conference in which he argued that the then-candidate’s calls for a ban on immigration by Muslims should not be taken “literally”. In 2016, as Thiel was growing more engaged with the pro-Trump far right, Thiel met with a prominent white nationalist, BuzzFeed News reported. As Trump’s presidency floundered, Thiel distanced himself from his former support.Luckey is best known as the founder of Oculus, the virtual reality headset startup that was acquired by Facebook for $2bn in 2014. His politics came under scrutiny during the 2016 campaign when it was revealed that he was funding a group dedicated to “shitposting” and anti-Hillary Clinton memes, and he was pushed out of Facebook in 2017. In July, his new startup, Anduril Industries, won a five-year contract with US Customs and Border Protection to provide AI technology for a border surveillance.Other supporters of the pardon include the former Disney executive Michael Ovitz and three of Levandowski’s attorneys.Levandowski was one of 143 people to be granted clemency by Trump on his last day in office. The former president has pardoned 70 people and commuted the sentences of a further 73 people. The recipients include Trump’s former senior adviser Steve Bannon, rappers Lil Wayne and Kodak Black, the Detroit mayor Kwame Kilpatrick and scores of others.The White House said Levandowski had “paid a significant price for his actions and plans to devote his talents to advance the public good”.Since his legal troubles began, Levandowski has founded a new self-driving car company and established a church focused on “the realization, acceptance and worship of a Godhead based on artificial intelligence (AI) developed through computer hardware and software”. The website for the Way of the Future Church appears to have become defunct at some point in March or April 2020.Reuters contributed to this report. More

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      Uber bought itself a law. Here's why that's dangerous for struggling drivers like me | Cherri Murphy

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      Last week, Uber bought itself a law.Along with Lyft, Instacart, DoorDash and Postmates, app companies spent more than $200m – the most spent on any ballot campaign in US history – to bankroll Proposition 22 in California. With its passage, the law will now exempt drivers like me from basic protections afforded to most other workers in the state.And in the aftermath of their bought-and-paid-for victory, these companies are promising to roll out this model nationwide, foretelling a grim future for gig workers across the US.But let’s be absolutely clear: Prop 22 is a dangerous law. Voters in California, inundated with ads promising drivers a “living wage”, flexibility and greater benefits, believed they were ensuring drivers a better future in the middle of a pandemic and recession.But voters were hoodwinked. Drivers are now neither employees, guaranteed rights and benefits such as healthcare, nor true independent contractors, since we can’t set our own rates, choose our own clients, or build wealth on the apps.Instead, Prop 22 promises substandard healthcare, a death sentence to many in the middle of a pandemic. We’re promised a sub-minimum wage in the middle of a recession that an independent study showed would be as low as $5.64 an hour – not the eventual $15 state minimum. We’re given no family leave, no paid sick days and no access to state unemployment compensation. Most importantly, while we’re already prevented from unionizing under federal law, the measure also makes it nearly impossible for California to pass laws protecting drivers who organize collectively, a fundamental right that companies undermine to silence worker power. More