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business Thursday 5 November 2020
Ride-hailing, delivery giants win fight against labor law

By CATHY BUSSEWITZ and ment protections for app-
MICHAEL LIEDTKE based workers. "I'm worried
AP Business Writers about what these compa-
OAKLAND, Calif. (AP) — A nies may try to pull off on a
group of technology-em- national basis."
powered rebels, including Edan Alva, a former Lyft
Uber, Lyft and Doordash, driver, stopped driving dur-
have dodged a potentially ing the pandemic because
devastating blow to their he was shelling out for dis-
industry by carving out an infectant, risking his health
exemption for themselves and barely making money.
from a California law that He was hoping the propo-
required them to classify sition would fail, leading
their drivers as employees to better working condi-
instead of contractors. tions so he could consider
California voters passed driving again. The triumph
Proposition 22, winning 58% came at a high cost after
of more than 11 million vot- the two opposing sides of
ers and delivering a sting- the issues spent more than
ing rebuke to state law- $220 million arguing their
makers and labor leaders cases, making Proposition
who were fighting for bet- 22 by far the most expen-
ter working conditions for a sive initiative in Califor-
growing number of people In this Aug. 20, 2020, file photo travelers request an Uber ride at Los Angeles International Airport's nia history. Uber, Lyft and,
who drive for ride-hailing LAX-it pick up terminal. Associated Press DoorDash, Instacart and
and food delivery services their supporters account-
in the nation's most popu- nies and their supporters Lyft and Uber, as well as ing able to make his own ed for roughly $200 million
lous state. helped them win the vote. handle deliveries for Post- schedule. "You can just that amount, underscoring
California has one of the The investment yielded a mates and Instacart, as he work when you want and how badly the companies
strictest laws in the coun- huge return for Uber and has been during the past stop whenever you want," wanted to preserve their
try for determining when Lyft, whose combined mar- three years whenever he he said. "And as someone business model.
a company must treat its ket value climbed by $8 bil- isn't busy filing taxes for his who is retired, it's nice to Still pending in Alameda
workers as employees with lion on Wednesday. clients. get a little supplemental in- County Superior Court is a
benefits such as minimum Supporters applauded the "If Prop. 22 had lost, I come whenever you need case brought by Califor-
wage, overtime and sick outcome, saying drivers wouldn't have been able it." Others viewed the de- nia's labor commissioner
days. Uber, Lyft, Doordash, would be able to main- to keep doing that to make velopment as a major set- against Uber and Lyft in
Instacart and others sought tain their independence extra money. I couldn't back for gig workers. August, which accuse the
to get out of those require- while accessing new ben- work for all of them if I had "It should be a good wake- companies in separate
ments, and after failing in efits such as a guaranteed to be an employee," Pruitt up call for us all, across the complaints of engaging in
court, succeeded in con- minimum wage and health said. country, if these compa- "wage theft." The suit seeks
vincing voters to give them care subsidies. James Patterson, a Sacra- nies think they can buy their to recover unpaid wages
an exemption from most Don Pruitt, an accountant mento retiree who drove way out of having to com- and other penalties for
of the year-old law's provi- in Stockton, was relieved four years for Lyft but now ply with basic labor laws," the 10 months that Califor-
sions. by Proposition 22's passage currently does deliveries for said Shannon Liss-Riordan, nia's law had been in ef-
A record $200 million spend- because it will allow him to DoorDash and Postmates, a labor attorney who has fect before Proposition 22's
ing spree by the compa- continue to drive for both prefers the freedom of be- been fighting for employ- passage.q

U.S. trade deficit falls to $63.9 billion in September

By MATT OTT of 2012. Soybean exports and disrupted global sup-
AP Business Writer rose 63% in September. ply chains everywhere.
SILVER SPRING, Md. (AP) Imports ticked up 0.5% to The politically sensitive defi-
— The U.S. trade deficit fell $240.2 billion, also helped cit in the trade of goods
in September after hitting by $13.5 billion in the food with China fell about 8% in
a 14-year high the previ- and beverage category, September to $24.3 billion
ous month as exports out- which were the highest on from $26.4 billion in August.
paced imports. record. Exports to China in Septem-
The gap between what Year to date, the goods ber of $11.5 billion were
the U.S. sells and what it and services deficit has the highest since March of
buys abroad fell to $63.9 jumped $38.5 billion, or 2018.
billion in September, a de- 8.6%, to $485.6 billion. The When Donald Trump cam-
cline of 4.7%, from a $67 total deficit for goods and paigned for president in
billion deficit in August, the services for the same pe- 2016 he pledged to sharply In this Nov. 4, 2019 file photo, John Deere tractors made by
Commerce Department riod in 2019 was $447.1 bil- lower the country's large Deere & Company are shown as they are readied for export to
reported Wednesday. Sep- lion. trade deficits, especially Asia at the Port of Tacoma in Tacoma, Wash.
tember exports rose 2.6% to Total exports are down with China, which for years Associated Press
$176.4 billion, pushed high- 17.4% this year from 2019, has been the country with with China and a renego- have remained stubbornly
er by the food and bever- while imports have declined the largest trade surplus tiation of the North Ameri- high, although the defi-
age category, where ship- by 12.4% as the coronavirus with the United States. can Free Trade Agreement cit with Mexico fell by $1.8
ments worth $12.9 billion pandemic has sabotaged But despite Trump's confron- with Canada and Mexico, billion to $10.7 billion in
were the highest since July global commerce this year tational approach on trade America's trade deficits September.q