California’s New Pro-Union Law Could Grind the Supply Chain to a Halt

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.

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’s approximately 70,000 independent truck owner-operators, The Wall Street Journal reported. 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 reported.

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