{"id":1558480,"date":"2022-07-17T13:07:34","date_gmt":"2022-07-17T17:07:34","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1558480"},"modified":"2022-07-17T13:19:15","modified_gmt":"2022-07-17T17:19:15","slug":"californias-new-pro-union-law-could-grind-the-supply-chain-to-a-halt","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/californias-new-pro-union-law-could-grind-the-supply-chain-to-a-halt\/","title":{"rendered":"California\u2019s New Pro-Union Law Could Grind The Supply Chain To A Halt"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcalifornias-new-pro-union-law-could-grind-the-supply-chain-to-a-halt%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1558480&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/2022-07-15T130745Z_2_LYNXMPEI6E0KH_RTROPTP_4_USA-IMPORTS-scaled-e1657917695655.jpeg\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<ul>\n<li><strong>California truckers are protesting against AB 5, a new regulation that would reclassify them as employees rather than independent contractors.<\/strong><\/li>\n<li><strong>Truckers say this is \u201cmessing with a working model,\u201d and that they\u2019ll \u201chave to take less work and charge more.\u201d<\/strong><\/li>\n<li><strong>AB 5 takes effect at a time when supply chain issues are of major concern, and the White House is watching the issue.<\/strong><\/li>\n<\/ul>\n<p>California truckers are protesting across the state to express their disapproval of Assembly Bill (AB) 5, a new law backed by unions that reclassifies them as employees rather than independent contractors and could send shockwaves through an already-stressed supply chain.<\/p>\n<p>The regulation was partly enacted to protect gig workers at companies like Uber and Lyft that hire independent contractors in large numbers without affording them the benefits given to employees, but will complicate or render illegal the current employment status of many of California\u2019s approximately 70,000 independent truck owner-operators, The Wall Street Journal <a href=\"https:\/\/www.wsj.com\/articles\/california-truckers-struggle-to-comply-with-new-employment-law-11657743310\">reported<\/a>. The law will likely force some truckers out of the industry, thus lowering shipping capacity and raising prices for transporting cargo in the Golden State at a time when California ports have already experienced major supply-chain bottlenecks during the COVID-19 pandemic, CalMatters <a href=\"https:\/\/us11.campaign-archive.com\/?e=07ec8ce5b4&#038;u=5f4af3af825368013c58e4547&#038;id=9b76d4e9f9\" target=\"_blank\" rel=\"noopener noreferrer\">reported<\/a>.<\/p>\n<p>\u201cThe truckers are so critical to this supply chain and we\u2019ve got to make sure there are conditions that will take care of them. We\u2019ll continue to watch and assess these impacts,\u201d White House port envoy Stephen Lyons <a href=\"https:\/\/www.dailynews.com\/2022\/07\/13\/new-white-house-supply-chain-envoy-joins-port-of-la-chief-for-record-setting-updates\/\" target=\"_blank\" rel=\"noopener noreferrer\">said<\/a> Wednesday in reference to the law.<\/p>\n<p>AB 5 was originally signed by California Gov. Gavin Newsom in 2019 and had been working its ways through the courts ever since, but the U.S. Supreme Court declined to review the case on June 30, paving the way for the law to go into effect earlier this month, CalMatters reported. Now, truckers may have to get their own permits and insurance which could increase their annual costs by $20,000, the WSJ reported.<\/p>\n<p>\u201cGasoline has been poured on the fire that is our ongoing supply chain crisis,\u201d the California Trucking Association said in a <a href=\"https:\/\/www.caltrux.org\/ab-5-faq\/\">statement<\/a> following the Supreme Court\u2019s decision not to hear the case back in late June. <strong><a href=\"https:\/\/dailycaller.com\/2022\/07\/15\/business-owners-already-seeing-recession\/\">(RELATED: \u2018A Definite Slowdown\u2019: Business Owners Say They\u2019re Already Seeing Signs Of A Recession)<\/a><\/strong><\/p>\n<p>California\u2019s ports are already <a href=\"https:\/\/dailycaller.com\/2022\/04\/10\/california-supply-chain-crisis-worse-biden-trucks-ports\/\" target=\"_blank\" rel=\"noopener noreferrer\">some of the country\u2019s least efficient<\/a>, logistics experts previously told the Daily Caller News Foundation, and fewer drivers in the workforce could imperil the state\u2019s shipping infrastructure further.<\/p>\n<p>\u201cThe historic ongoing congestion felt at our State\u2019s ports exposed the dire need for a stronger and more reliable supply chain infrastructure. To this end, the state has openly expressed the need for an increased workforce, yet the available supply of drivers, \u2018owner-operator\u2019 or otherwise, will be drastically reduced given the imminent application of AB 5 to the trucking industry,\u201d several California state lawmakers wrote in a July 5 <a href=\"https:\/\/asmrc.org\/wp-content\/uploads\/2022\/07\/Letter-to-Newsom-AB-5-7.5.22.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">letter<\/a>\u00a0to California Gov. Gavin Newsom.<\/p>\n<p>At the very least, the new law adds uncertainty to supply chains, Ron Leibman, a partner at law firm McCarter &#038; English LLP who specializes in the freight industry, told the DCNF.<\/p>\n<p>\u201cThe truth is no-one knows what the ultimate outcome of this will be. And truckers in different places will be affected differently,\u201d Leibman told the DCNF.<\/p>\n<p>A number of truckers at the Port of Oakland plan to stay home from work on Monday, as others have this week at the Ports of Los Angeles and the Port of Long Beach, according to the WSJ.<\/p>\n<p>Truckers are currently \u201cblocking off main access gates to some of the major ports slowing down regular operations as a show of unity\u201d against AB 5, Miguel Ramirez, who has been an owner operator in Southern California since the early 2000s, told the Daily Caller News Foundation.<\/p>\n<p>Truckers in Los Angeles jammed traffic and initially prepared for a 24-hour protest on Wednesday, but a \u201cmassive crowd\u201d of drivers responded with such passion that they plan to continue protesting across the state, one of the demonstration\u2019s planners <a href=\"https:\/\/www.supplychaindive.com\/news\/trucking-protest-AB5-california-ports-los-angeles-long-beach-oakland-supply-chains\/627214\/\">told<\/a> Supply Chain Dive.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\"><a href=\"https:\/\/twitter.com\/hashtag\/Truckers?src=hash&#038;ref_src=twsrc%5Etfw\">#Truckers<\/a> jamming traffic on the 710S in <a href=\"https:\/\/twitter.com\/hashtag\/LosAngeles?src=hash&#038;ref_src=twsrc%5Etfw\">#LosAngeles<\/a>! <a href=\"https:\/\/twitter.com\/knxnews?ref_src=twsrc%5Etfw\">@knxnews<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/AB5?src=hash&#038;ref_src=twsrc%5Etfw\">#AB5<\/a> <a href=\"https:\/\/t.co\/EtwBwGiZSH\">pic.twitter.com\/EtwBwGiZSH<\/a><\/p>\n<p>\u2014 Craig Fiegener (@CraigNews3LV) <a href=\"https:\/\/twitter.com\/CraigNews3LV\/status\/1547278643683946496?ref_src=twsrc%5Etfw\">July 13, 2022<\/a> <\/p>\n<\/blockquote>\n<p>Many drivers that own and operate their own rigs but have arrangements with shipping companies would no longer be able to do so under AB 5, according to the WSJ.<\/p>\n<p>This would mess with a working model and leave independent truckers worse off, Ramirez told the DCNF.<\/p>\n<p>\u201cAB 5 would leave independent owner operators just two options: become an employee and lose all your liberty under someone else\u2019s mandate, hours, and follow their policies, or jump ship and become your own company, but have to do all sorts of things that most truckers don\u2019t want to do like regulatory stuff in an over-regulated and complex industry,\u201d according to Ramirez. \u201cIt\u2019ll kill the liberty of being a trucker and kill the American Dream.\u201d<\/p>\n<p>\u201cI will have to take less work and charge more,\u201d the president of an Oakland-based trucking firm with about six full-time drivers and a fleet of about eight trucks told the WSJ.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Truckers prefer to be independent contractors and AB5 is going to add to further supply chain woes.<\/p>\n<p>This is why many of us <a href=\"https:\/\/twitter.com\/hashtag\/FightForFreelancers?src=hash&#038;ref_src=twsrc%5Etfw\">#FightForFreelancers<\/a>. <a href=\"https:\/\/t.co\/ncQoGLMvG9\">https:\/\/t.co\/ncQoGLMvG9<\/a><\/p>\n<p>\u2014 Gabriella Hoffman (@Gabby_Hoffman) <a href=\"https:\/\/twitter.com\/Gabby_Hoffman\/status\/1547410231788834816?ref_src=twsrc%5Etfw\">July 14, 2022<\/a> <\/p>\n<\/blockquote>\n<p>The International Brotherhood of Teamsters has maintained that trucking companies have long misclassified drivers as independent contractors to deprive them of fair compensation, the WSJ reported. However, independent owner-operators are not employees and therefore cannot be members of the union, so no union members would be affected by the legislation.<\/p>\n<div class=\"media-object-rich-text\">\n<p>Neither California Gov. Gavin Newsom nor the California Teamsters Public Affairs Council responded to the Daily Caller News Foundation\u2019s request for comment.<\/p>\n<\/p><\/div>\n<p>Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact <a href=\"mailto:licensing@dailycallernewsfoundation.org\">licensing@dailycallernewsfoundation.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cI will have to take less work and charge more.&#8221;<\/p>\n","protected":false},"author":979,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1558480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1558480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/979"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1558480"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1558480\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1558480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1558480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1558480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}