Freelance job-killing AB5 supporters praised gig company for caving to their demands – it’s now going out of business
In yet another example of Democratic plans going to crap, the company that AB5-lovers were praising for changing their policies to suck up to unions has months later began to shed jobs and shut down in California.
The company is Deliv, and they have fired hundreds after bowing to union demands:
A California delivery start-up praised by organized labor for its use of employees rather than independent contractors announced last week it would wind down operations this summer, laying off 669 employees–including 591 drivers. The company’s implosion illuminates how California’s now-infamous Assembly Bill 5 is unworkable for the gig companies so many Americans rely on.
If you can just imagine, the morons in California’s legislature passed this law to GUT freelance jobs in California in order to help out their union puppetmasters. Then the coronavirus pandemic hits, taking even MORE jobs. And instead of easing up on the tens of thousands of people who COULD be working from home, the Democrats DOUBLE DOWN and set aside taxpayer money to HUNT DOWN people whose jobs are now BANNED by their idiotic law. Incredible.
Here’s more about what happened:
While AB5 was being debated in 2019, the UPS-backed company Deliv announced it would transform its independent contractor workforce in the state into employees–hiring them through a subsidiary called Deliv California.
The unions behind the disruptive legislation were thrilled; the Teamsters union praised the company for “stepping up,” called it a model for the future, and said it would like to represent the employees. Deliv said the decision wouldn’t harm its finances: “Deliv’s ability to offer cost-effective same-day delivery is driven by its proprietary technology and unique business model, not the classification of workers.” One year later, that confidence seems misplaced: Deliv is nearly defunct, while competitor companies who rely on independent contractors report record growth.
One Silicon Valley publication was unsparing in its conclusion: “At a time when other startups in the delivery business are doing record business, Deliv Inc. is shutting down.”
Less than a year ago, the bill’s freelance-slaying pendeja-author Lorena Gonzalez praised Deliv for sucking up to the unions:
Deliv is switching California couriers from independent contractors to employees — ‘start of a wave’ https://t.co/rOqgbDHrPk
Deliv’s CEO calls the move “the best approach for all our stakeholders.” #DisruptInequality #YesOnAB5
— Lorena Gonzalez (@LorenaAD80) June 23, 2019
Oh look at this, unions think Deliv is amazing and everyone should follow their example:
“Dynamex is working” @TeamsterDoug on platform delivery company’s decision to recognize workers as employees. Other gig companies should follow Deliv’s lead by ensuring workers have much-needed protections that come w/ being employees #YesonAB5 https://t.co/ooLF1rN5kG
— California Labor Federation (@CaliforniaLabor) June 23, 2019
Their example being having to fire a bunch of people and go out of business. Great business plan!!
And they wonder why Uber and Lyft are spending millions to defeat their idiotic job-killing bill.
Here’s some more on AB5, the freelance-killing law:
- John Stossell obliterates AB5, the freelance-killing ‘gig economy’ law, in a fantastic new video
AB5 author Lorena Gonzalez gets a smackdown by a small business owner and exposes her elitism
- AB5 author Sen. Lorena Gonzalez says jobs lost were not real jobs
- More about the bill from the AB5 Facts website
- A petition against AB5 gets 170,000 signatures from just one industry
- Iconic writer Neil Gaiman backs anti-AB5 movement
- AB5 author Lorena Gonzalez LIES about protesters at her rally
- Great tweets from handsome blogger Soopermexican against Ab5