Cal. BPC § 7470.14 — California Code / Code bpc / Division 3 / Chapter 10.7 / Section 7470.14
Section 7470.14
Status: in_force

(a) After the board notifies the covered TNCs of the board’s determination that a specified TNC driver organization is the certified driver bargaining organization for the bargaining unit, that TNC driver organization or those covered TNCs may request to begin negotiations.

(b) (1) All TNCs that are covered TNCs pursuant to Section 7470.5, their agents or representatives, and the certified driver bargaining organization shall have an obligation to negotiate in good faith to reach a sectoral agreement that will apply to all covered TNCs pursuant to this chapter.

(2) Covered TNCs may form a multicompany committee for purposes of collective bargaining. If covered TNCs do not form a multicompany committee pursuant to this paragraph, then the certified driver bargaining organization may require all covered TNCs to bargain within the certified driver bargaining organization together, and an individual covered TNC shall not object to such a requirement to bargain in concert with other covered TNCs.

(3) A sectoral agreement shall be approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs.

(4) For purposes of this subdivision, “to negotiate in good faith” means the performance of the mutual obligation of the covered transportation network companies or their agents or representatives and the certified driver bargaining organization to meet at reasonable times and negotiate in good faith with respect to subjects within the scope of representation and to execute a written contract incorporating any agreement reached if requested by either party. However, this mutual obligation does not compel either party to agree to a proposal or require the making of a concession.

(c) If the certified driver bargaining organization and covered TNCs reach a recommended sectoral agreement for the bargaining unit, the recommended agreement shall be ratified pursuant to the certified driver bargaining organization’s procedures. The recommended agreement shall then be submitted to the board for review and approval or disapproval. If the recommended agreement is not ratified according to the certified driver bargaining organization’s procedures, the certified driver bargaining organization and covered TNCs shall resume bargaining.

(d) (1) If there has been no prior sectoral agreement under this chapter, covered TNCs or the certified driver bargaining organization may file with the board, at any time following 210 days after an initial request to bargain, a petition requesting that the board issue an order referring the parties to mediation of their issues. The parties may also jointly file a petition requesting referral to mediation at any time after the commencement of bargaining. Upon receipt of a petition, the board shall promptly refer the parties to mediation.

(2) If the parties have not agreed upon a mediator, the board shall, within seven days of receiving the petition, obtain from the California State Mediation and Conciliation Service (CSMCS) a list of nine qualified, disinterested mediators who have experience in labor mediation and submit it to the parties. A representative of the covered TNCs and a representative of the certified driver bargaining organization shall alternately strike from the list one of the names. The order of striking shall be determined by lot until one name remains. The remaining person shall be designated as the mediator. In the event the parties are unable to select the mediator within 15 days following receipt of the list from the board because a party refuses to strike names, the board shall appoint the mediator from the list provided by CSMCS.

(3) The parties shall have a duty to participate in good faith in mediation.

(4) If the certified driver bargaining organization and the covered TNCs reach a recommended sectoral agreement for the industry through mediation, the approval process described in subdivision (c) shall apply.

(5) Communications and documents exchanged pursuant to mediation shall be inadmissible in any official, regulatory, or judicial proceeding, consistent with Chapter 2 (commencing with Section 1115) of Division 9 of the Evidence Code.

(e) (1) Within 30 days after a dispute has been referred to mediation, the parties shall select a prospective arbitrator to resolve the dispute if mediation is unsuccessful. If the parties have not agreed upon an arbitrator within 30 days, the covered TNCs and the certified driver bargaining organization each shall propose three arbitrators to the board and the board shall propose three arbitrators from the American Arbitration Association roster who have at least 10 years of experience conducting labor arbitrations in California, have interest arbitration experience, and are members of the National Academy of Arbitrators. The certified driver bargaining organization and the covered TNCs shall select an arbitrator within seven days of receipt of the combined list from the board. The parties may mutually select an arbitrator who is not on the list. If the parties cannot agree on an arbitrator, each side shall alternatively strike from the list one of the names until an arbitrator is chosen by process of elimination. The board shall determine by lot which side shall strike first. If either side refuses to propose arbitrators for the list or to participate in selecting an arbitrator within 15 days following receipt of the list from the board, the board shall appoint the arbitrator from the original list proposed by the board.

(2) If the mediator is unable to achieve agreement between the parties concerning an appropriate resolution within 75 days of appointment of the mediator or within 60 days after the first meeting of the parties with the mediator, whichever occurs first, either the certified driver bargaining organization or the covered TNCs may petition the board to refer the dispute for resolution through arbitration. The parties may also jointly file a petition requesting referral of the dispute to arbitration at any time after the commencement of bargaining. Upon a filing of such a petition, the board shall refer the dispute to the arbitrator for resolution.

(3) (A) The arbitrator shall hold hearings on all matters related to the dispute. The parties may be heard and represented by counsel or by other representatives, as the parties may designate. The arbitrator shall determine the order of presentation by the parties and shall have discretion and authority to decide all procedural issues that may be raised. At the mutual request of the parties, the arbitrator may meet directly with the parties to attempt to mediate the dispute.

(B) The TNCs and the certified driver bargaining organization shall each be responsible for 50 percent of the cost of the arbitrator or mediator. The board shall have the authority to apportion costs among TNCs based on market share if the TNCs cannot agree to apportion costs among themselves.

(C) The parties may present, either orally or in writing, or both, statements of fact, supporting witnesses and other evidence, and arguments of their respective positions.

(D) The arbitrator shall have the authority to require the production of additional oral or written evidence from the parties. The arbitrator shall provide, at the request of either party, that a full and complete record be kept of any hearings, with the cost of the record borne by the requesting party. If such a record is created, it shall be shared with all parties, regardless of the party that paid for it.

(E) Within 90 days of the first meeting of the parties with the arbitrator or 105 days after appointment of the arbitrator, whichever occurs first, the arbitrator shall make a just and reasonable determination of the matters in dispute, and shall issue a recommended sectoral agreement that resolves all disputed issues. The time period for the arbitration proceedings may be extended by the arbitrator upon good cause shown, or by agreement, by the parties.

(F) In issuing a recommended sectoral agreement, the arbitrator shall specify the basis for their findings, taking into consideration the following factors:

(i) The positions of the parties.

(ii) The conditions of similar workers.

(iii) Whether the terms of the recommended agreement achieve the policy goals set forth in Section 7470.1, including, but not limited to, the improvement of working conditions and the improvement or provision for the prompt resolution of disputes between covered TNCs and TNC drivers.

(iv) If the covered TNCs claim an inability to pay for the certified driver bargaining organization’s demands, the financial ability of the covered TNCs to pay for the requirements set forth in the recommended agreement.

(v) The impact of the recommended agreement on the delivery of services provided by TNCs.

(vi) Whether the recommended agreement would have a discriminatory impact on smaller TNCs or new entrants to the industry.

(vii) Any other factors recommended by the parties that the arbitrator finds to be consistent with this chapter.

(G) The sectoral agreement recommended by the arbitrator shall contain all of the following:

(i) Terms on which the parties have mutually agreed.

(ii) Binding recommendations on all minimum subjects set forth in subdivision (a) of Section 7470.13 that have not been waived.

(iii) Nonbinding recommendations on all other matters submitted for dispute resolution within the scope of representation.

(H) After receipt of the recommended sectoral agreement, the covered TNCs shall have 10 days to notify the certified driver bargaining organization as to whether the covered TNCs accept the recommended sectoral agreement in its entirety, including the nonbinding recommendations. If the covered TNCs accept the recommended sectoral agreement in its entirety, the recommended sectoral agreement shall be submitted to the board for review and approval or disapproval.

(I) The certified driver bargaining organization and the covered TNCs may also mutually agree to modify the recommended sectoral agreement and submit a modified sectoral agreement, in whole, to the board for review and approval or disapproval within 15 days after receiving the recommended sectoral agreement.

(J) (i) If, within 10 days of receiving the recommended sectoral agreement, the covered TNCs have not accepted the recommended sectoral agreement, and within 15 days of receiving the sectoral agreement the parties have not agreed upon a modified sectoral agreement, the certified driver bargaining organization may, within 20 days of receiving the recommended sectoral agreement, submit the proposed sectoral agreement without the nonbinding recommendations to the board for review and approval. Notwithstanding the submission of the modified sectoral agreement for approval, or the approval of the modified sectoral agreement, the parties shall have a duty to continue to bargain in good faith to reach agreement on the subjects addressed by the nonbinding recommendations.

(ii) If the certified driver bargaining organization does not elect to submit a proposed sectoral agreement to the board pursuant to clause (i), the parties shall have a duty to continue to bargain in good faith over the items in dispute to reach agreement on a new sectoral agreement for submission to the board.

(iii) The certified driver bargaining organization and the covered TNCs may, at any time, mutually submit a new proposed sectoral agreement to the board for review and approval or disapproval, and such an agreement may include modifications to any of the terms of the binding recommendations.

(K) The time periods set forth in this section may be extended by mutual agreement of the certified driver bargaining organization and the covered TNCs.

(L) For purposes of this section, any decision or action by the covered TNCs means a decision or action approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs.

(f) Following an initial sectoral agreement, all subsequent negotiations for all subsequent agreements shall begin at least 180 days before the current agreement expires. For all subsequent agreements, either the covered TNCs or the certified driver bargaining organization may, at any time after 180 days after the commencement of negotiations, petition the board to refer the parties to mediation. Except as provided in this subdivision, the timelines and procedures for mediation and arbitration for subsequent agreements shall be as provided in this section. The terms of a sectoral agreement shall remain in effect, including, but not limited to, any grievance and arbitration provisions and any provisions governing the deduction and transmittal of membership dues, until a new agreement is approved by the board.

(g) For purposes of this section, any decision is binding on all covered TNCs if approved by covered TNCs that include at least 80 percent of the industry, as measured by rideshare volume on the most recent quarterly report filed with the board, and that include at least the two largest covered TNCs.