SEIU Is Trying to Cut Backroom Deal with Uber and Lyft in California

SEIU officials in California have been engaged in secret discussions with Uber and Lyft around a scheme to exempt the two tech giants from a groundbreaking new bill in California that would force the companies to hire their drivers as employees rather than exploit them as independent contractors.

SEIU, in exchange for backing the companies’ political play in the Capitol, would be designated as the companies’ official union-lite “association” for their independent-contractor drivers, according to articles in the Los Angeles Times, New York Times and other publications.

(Johana Bhuiyan, “Treat workers as employees? Uber, Lyft and others are scrambling for a compromise,” Los Angeles Times, June 23, 2019.  Noam Scheiber, “Debate Over Uber and Lyft Drivers’ Rights in California Has Split Labor,” New York Times, June 29, 2019.)

The news has been met with outrage by drivers. Check out this tweet from Rideshare Drivers United-LA:

 

We won't work with any union that's in talks with #Uber and #Lyft to accept money from them and limit our full rights as employees. We represent the direct voice of the drivers who want & deserve better. Collective bargaining and a seat at the table.@GavinNewsom should know this. https://t.co/Fiy3zbZpUr

— Rideshare Drivers United - LA (@_drivers_united) June 30, 2019

What’s causing SEIU officials to leap into bed with gig executives?

Opportunism on SEIU’s part. And desperation from the tech execs.

California’s legislature is poised to pass a bill that would require Uber, Lyft and other gig companies to hire their drivers as employees. This would finally give drivers the basic legal protections that come with employment status, including: minimum wage, sick leave, overtime pay, meal and rest breaks, unemployment insurance, disability insurance, workers’ compensation, parental leave, family leave and contributions to Social Security and Medicare.

The bill was triggered by a unanimous 2018 decision by the California Supreme Court known as the Dynamex decision.

To save money, Dynamex -- a same-day courier service -- converted all its employees to independent contractors. A former employee sued the company. The case ultimately landed in the state Supreme Court, which ruled that company executives had misclassified the workers as contractors. The court set up a new test to determine whether workers are independent contractors or employees.

Earlier this year, California Assemblymember Lorena Gonzalez introduced Assembly Bill 5 to put this new standard into California law. If it’s not in state law, workers’ only solution is to sue every time a company violates the Supreme Court’s new standard. AB 5 was approved by the Assembly by a vote of 59 to 15, and it’s now in the State Senate. It’s sponsored by the California Labor Federation.

The bill would affect 100,000 drivers at Uber and Lyft, as well as an estimated 1.9 million additional California workers who are currently misclassified as independent contractors.

Tech companies are going batsh*t crazy over AB 5.

If they can no longer exploit workers as independent contractors, their profits will decline. So they’re pulling out all the stops to try to defeat or gut the bill… including trying to cut backroom deals with unprincipled union officials at SEIU and the Teamsters. Here’s how the Los Angeles Times describes it:

In recent months, Uber, Lyft, DoorDash, Postmates and other companies have been in discussions with officials at two labor unions — including local chapters of the Teamsters and Service Employees International Union — over a possible legislative alternative to Assembly Bill 5, now working its way through the state Senate. The proposal, details of which are still in flux, would allow the firms to continue to treat workers as independent contractors while providing them some benefits and protections typically reserved for employees. (The California Labor Federation, which represents most of the state’s unions, remains committed to obtaining full employee status for on-demand workers.) At least two of the companies, Postmates and DoorDash, have also commissioned surveys to feel out how such a deal would play with Californians.

According to Vox, the deal would require the tech companies to pay the unions to “advocate for the drivers.” Sounds like a company union. (Alexia Fernández Campbell, “Secret meetings between Uber and labor unions are causing an uproar,” Vox, July 1, 2019.)

The New York Times cites two unnamed people who attended a meeting of SEIU officials during the past two weeks during which Alma Hernandez, the executive director of the SEIU California State Council, reportedly talked about SEIU’s discussions with the tech companies. It also cites David Huerta, president of the United Service Workers West, as saying he “attended internal and external meetings about gig workers with Ms. Hernández.”

 Drivers have also filed class-action lawsuits to recoup money and rights stolen by the gig giants. In March, Uber settled a class-action lawsuit with 13,600 Uber drivers, agreeing to pay them $20 million, but without changing their status as independent contractors.

Vox’s Alexia Fernández Campbell points out that the tech companies are not just exploiting workers, they’re also shifting billions of dollars of taxes onto the backs of regular people. She writes:

The state estimates it loses about $7 billion a year in payroll tax revenue due to worker misclassification that could be supporting schools, roads and other public services. And by avoiding unemployment insurance taxes and workers’ compensation premiums, businesses shift the burden to the state when workers get laid off, get sick or get injured on the job.

“These billion dollar companies can complain but we have to ask ourselves as taxpayers: Should we subsidize their business by subsidizing their workers?” said Assemblywoman Lorena Gonzalez, a former labor organizer from San Diego who is author of AB 5. “That’s what happens when you don’t adequately compensate workers.”

This is not the first time that SEIU’s top officials have been caught doing dirty deals with tech titans and gig giants. In 2017, SEIU President Emeritus Andy Stern began working as a highly paid consultant for tech businesses to help them pass a law in the New York state legislature so tech companies could continue to treat their workers as independent contractors. It’s unclear whether Stern continues today in that consultant role.

Andy Stern and David Rolf

Also in 2017, Stern co-authored a proposal with a right-wing D.C. political operative calling on the Republican-controlled U.S. Congress and White House to grant “waivers” to states to allow them to do an end-run around federal labor laws. The waivers would be a boon to tech companies, which are facing dozens of class-action action lawsuits from workers alleging they’re owed millions in back pay after being misclassified as “independent contractors.”

Stern’s proposal, entitled “How to Modernize Labor Law” and co-authored with Eli Lehrer (President of the right-wing “R Street Institute” in Washington DC), was published in National Affairs.

In 2018, David Rolf (then-President of SEIU Local 775 and a member of SEIU’s International Executive Board) signed an open letter with Uber CEO Dara Khosrowshahi and venture capitalist Nick Hanauer calling for the passage of Washington state legislation that reportedly would consign gig workers to a second-class status as independent contractors.

The uber-wealthy plutocrats atop tech companies want to keep sucking as many profits as they can from their workforce. The top three execs at Uber and Lyft have a combined worth of over $1 billion.

Garrett Camp -- a multi-billionaire “Tech tycoon” who co-founded Uber -- just paid a record-breaking $72.5 million for a brand-new estate in Beverly Hills, according to an article published yesterday in Variety.

Uber cofounder and billionaire Garrett Camp

 Camp’s purchase has sparked anger from drivers in Los Angeles. Here’s an excerpt from an article in the London Guardian published yesterday (Sam Levin, “Uber co-founder buys record-breaking LA mansion for $72.5m as drivers fight for wages,” The Guardian (London), July 2, 2019.):

“This is a perfect example of the 1% stealing from the rest of us,” Nicole Moore, a ride-share driver in Los Angeles, said of Camp’s $72.5m purchase. “Drivers are living in their cars. We’re fighting for fair wages. At least share that wealth with the people who have actually built your company.”

… “This guy is buying lavish houses with our money, our hard-earned money that they are unjustly taking from us,” added Karim Bayumi, another Los Angeles Uber driver and organizer. “It’s exploitation.”

Hey Mary Kay Henry and Jimmy Hoffa, Jr... Your thoughts? Will SEIU and Teamsters officials perform intimate love acts with these tech billionaires? Or defend exploited workers against greedy corporations?

SEIU’s David Rolf Joins Andy Stern in Pimping for Uber

Andy Stern and Andy's "Mini-Me" David Rolf

Remember when SEIU President Emeritus Andy Stern began working as a consultant for Airbnb, Handy, and other tech firms to help them try to undermine gig-economy workers’ right to be treated as regular employees?

Well, another SEIU official is now following “Handy” Andy’s lead.

Last month, SEIU Local 775 President David Rolf (a.k.a. Andy Stern’s “Mini-Me”) signed an open letter with Uber CEO Dara Khosrowshahi and venture capitalist Nick Hanauer. 

The letter calls on “business, labor and government in Washington state to join us” in an effort to push state legislation that reportedly would consign gig workers to a second-class status as independent contractors without the right to overtime pay, unemployment insurance, disability insurance, Social Security, meal and rest breaks, etc.

For years, Uber drivers and other gig-economy workers have been fighting to force tech companies to treat them as regular employees. They’ve filed class-action action lawsuits seeking millions of dollars in back pay. And in Seattle, Uber drivers and Teamsters Local 117 successfully passed a law allowing Uber drivers to unionize.

Uber executives have been aggressively fighting workers’ organizing efforts in the courts as well as by launching an anti-union campaign in Seattle consisting of TV ads, online ads, text and e-mail blasts to drivers, anti-union meetings, and even an anti-union podcast.

And, in case workers are successful, Uber is also trying to do an end-run around workers’ efforts by trying to pass state laws that would permanently legislate gig workers into “independent contractor” status and create a second tier of so-called “portable benefits” for them.

That’s where Stern and Rolf come into the story.

In 2016, the tech companies hired Andy Stern as a lobbyist to help them try to pass such a bill in the New York legislature. Fortunately, that effort stalled due to opposition.

Following their failure in New York, the tech companies are now trying their luck in Washington State… with the help of David Rolf and Andy Stern. According to Uber’s website:

Last year, Uber approached David Rolf with SEIU 775 and entrepreneur Nick Hanauer about working together on the creation of a portable benefits system in Washington state… Following several productive discussions, we developed a joint letter calling on business, labor, and government to work together to address this important problem.

On January 23, 2018, Uber published a letter signed by Uber’s CEO, SEIU’s Rolf, and the venture capitalist. At the top of the letter is Uber’s logo alongside SEIU’s.

So, how are people responding to Rolf’s so-called “innovative” deal with Uber?

Here’s a sample, according to Bloomberg. (Josh Eidelson, “Uber-Union Proposal on Benefits Met With Skepticism From Labor,” Bloomberg, January 25, 2018).

New York Taxi Workers Alliance Director Bhairavi Desai told Bloomberg: “Selling out to the bosses is not innovative—it’s as old as capitalism."

Desai continued: “This type of bogus agreement only gives them [tech companies] cover for exploitation.”

Damn right!

In fact, Rolf has even been criticized by an official inside his own union, according to Bloomberg:

“This is just a facelift by Uber to be able to look like they actually care about the people who they hire for the services they provide,” said Hector Figueroa, who is president of SEIU’s East Coast property services affiliate and serves with Rolf on the international union’s executive board. “I just cannot comprehend how today, as a labor leader, I would be encouraging the spread of ‘independent’ work.”

Interesting, right?

Why is Rolf’s help so important to Uber?

First, Rolf’s union is one of the largest in Washington state and he's developed lots of relationships with politicians. If Uber is successful in passing its legislation in one state, it can then push similar legislation nationally, says Bloomberg’s Eidelson.

Uber hopes working with Rolf and Hanauer to pass legislation in Washington will change the national conversation on these issues, showing how benefits can be decoupled from traditional employee-employer status, and opening a less adversarial phase in the debate over how laws should treat gig-economy workers, a spokesperson said.

The trio, and whichever additional allies they can muster, will try to get a first-of-its-kind system passed into law in Washington state, which is Rolf and Hanauer’s home as well as one of the few places where Democrats have unified control of government and legislation on the issue is already being debated.

While the letter is light on details, the spokesperson said Uber wants to gather additional stakeholders and formulate a proposal that could be introduced in next year’s legislative session. Among the things a bill should do, the spokesperson said, is make clear that workers like Uber drivers are not employees.

Uber drivers protesting low pay

Meanwhile, Stern is working other channels to help Uber and tech companies permanently relegate their workers to independent-contractor status.

In December 2016, Stern co-authored a proposal with Eli Lehrer (President of the right-wing “R Street Institute” in Washington DC) calling on the Republican-controlled U.S. Congress and White House to grant “waivers” to states to allow them to escape the requirements of federal labor laws. The waivers would be a boon to tech companies, which Stern calls “sharing-economy companies” with “innovative business models.”

Stern, a master of deception and disinformation, entitled his proposal: “How to Modernize Labor Law.”

Does SEIU have no shame?

Hospital Workers Deliver Loss to SEIU-UHW during Sweetheart C.H.A. Election

Here's some breaking news.

Remember Dave Regan’s sweetheart deal with the California Hospital Association?

That’s the deal where hospital executives welcome SEIU-UHW into their hospitals to unionize up to 60,000 workers. In exchange, SEIU-UHW gives political favors to the Bosses and commits to force workers into pre-negotiated labor contracts with cheap wages and benefits.

Well, last night, the workers at a Southern California hospital rejected SEIU-UHW in one of the first elections run under the CHA deal... and despite the fact that hospital execs gave SEIU- UHW every possible advantage! The final tally at Mission Hospital, a 552-bed hospital in Orange County, was...

SEIU-UHW: 329

No Union: 409

What kind of help did execs give to SEIU-UHW?

SEIU-UHW got complete access to the hospital's break rooms and conference rooms to try to convince workers to vote for SEIU. A list of every employee’s home address and telephone number. An order from hospital execs to every manager and supervisor that prohibited them from saying anything negative about SEIU-UHW. 

In addition, hospital execs agreed to a rush-job scheduling of the election so that no other unions would be able to get on the NLRB ballot.

That left SEIU-UHW as the only union on the ballot… but SEIU-UHW still lost!

Sources say workers are overjoyed to get rid of the SEIU-UHW organizers, who they affectionately called "the purple clowns." Apparently, workers were literally tripping over purple organizers camped out in their break rooms, knocking on the front doors at night, phoning them relentlessly, and stalking them in hospital parking lots and the cafeteria.

SEIU mailer from Mission

Quite a story, right?

Well, here's the kicker.

On Monday, the NLRB counted the ballots in a separate union election initiated by workers at Redwood Memorial Hospital, who petitioned to join NUHW. 

Interestingly, the hospital is owned by the same company that owns Mission Hospital -- that is, St. Joseph Health System.

At Redwood Memorial, however, there was no sweetheart deal... and the Boss fought workers’ efforts to join NUHW. Nevertheless, on Monday workers voted by more than a three-to-one margin to join NUHW!

That's not all. This is the fourth hospital owned by St. Joseph Health System to vote to join NUHW.

Apparently, this rising wave of support for NUHW has caused some serious heart palpitations for St. Joseph's execs. So the company’s top execs decided to invite SEIU-UHW into their remaining non-union hospitals in hopes that the purple company union will blocking workers from joining NUHW.

This isn’t a new tactic. In the 1960s and 1970s, agricultural growers invited the Teamsters into their fields to keep the United Farm Workers out.

This is what SEIU’s Dave Regan calls "strategic collaboration" with the Boss, as he did in this recent TV interview with NBC news!

PS. Sources report that the SEIU-UHW organizers on the Mission Hospital campaign have become increasingly suspicious about Regan’s deal with the California Hospital Association (CHA). During the campaign, workers repeatedly asked the organizers about the sweetheart deal, the pre-negotiated contracts, etc… but Regan refuses to show the agreement to staffers or even the union's elected Executive Board. When they were asked about the CHA deal, SEIU-UHW organizers were instructed to recite a couple of canned talking points and then redirect the conversation towards a different topic.

Statewide Strike at Kaiser Permanente!

Check out this news coverage from Tuesday’s giant statewide strike against Kaiser Permanente. The strike -- the biggest in Kaiser’s history -- involved 22,000 members of NUHW, the California Nurses Association and the International Union of Operating Engineers... as well as members of SEIU-UHW who defied threats by Kaiser supervisors and SEIU Field Reps.

Here's TV footage from CBS News in Southern California, where NUHW’s 2,300 RNs, mental health workers, social workers and others were on strike.

And here’s CBS News footage from CBS from Kaiser Oakland Medical Center where NUHW, the CNA and the Operating Engineers were on the line.

Tasty hears that other unions also backed the walkout, including the Teamsters (delivery drivers) and the building trades, who shut down massive hospital construction sites at Kaiser facilities in Oakland, Fontana and elsewhere.

Check out this article by labor journalist Steve Early, the author of The Civil Wars in U.S. Labor. Early discusses how SEIU is "M.I.A." from any effort to fight Kaiser's effort to slash workers' pensions and health coverage. He also describes the recent leaked speeches by Dave Regan and John August, which point to SEIU's plan to sell-out Kaiser workers at the bargaining table. 


So where was SEIU in the run-up to the strike? They were working with Kaiser management to circulate strike-breaking leaflets like this one. How low can SEIU go? Seems like there's no limit at the Purple Palace.