Kara Swisher on Prop 22 ruling: “this is not over by a long stretch”
- Alameda County judge rules California Prop 22 violates the state’s constitution.
- Kara Swisher discusses ramifications of the verdict for Uber on CNBC's TechCheck.
- Morgan Stanley says Uber is one of tech’s best bets outside of the FAANG names.
A little under a year after the gig worker-centred companies like Uber Technologies Inc (NYSE: UBER) and Lyft spent $200 million collectively to have 59% of the California voters support Proposition 22, Alameda County judge Frank Roesch ruled that it violates the state’s constitution.
Shares of the company are about 3.0% up on the intraday chart.
Kara Swisher’s remarks on CNBC’s “TechCheck”
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The verdict comes in response to the lawsuit filed by SEIU (Service Employees International Union) in January. The battle, as per Recode’s Kara Swisher, however, is “not over by a long stretch” as the gig worker platforms are definitely going to appeal to the court’s decision.
“There was always going to be a push back from the unions. This is a fight that Uber has had since the beginning and will continue until it’s sorted out properly,” she said on CNBC’s “TechCheck”.
California supreme court to uphold the ruling
According to Swisher, the California supreme court is expected to uphold the decision, leaving Uber with not many options but to negotiate with its drivers or the unions at large and devise a strategy that secures healthcare benefits for the workers and offers them a living wage.
“They’re just going to have to pay for what it costs to have the people in their system until they can automate everything,” she added.
Morgan Stanley names Uber a top 2022 pick
Swisher acknowledged that many gig workers don’t want to be employees but fixated on the need to work out a business model that “protects” these workers, without which, “we have a nation of lords and serfs,” she added.
“They have to negotiate with the drivers and get to a place where it makes sense for the business model as well as for the workers. They have to deal with it in a way that helps them get to an equilibrium from an economic point of view and the labour point of view,” Swisher said.
Also on Monday, Morgan Stanley said Uber is one of tech’s best bets outside of the FAANG names.