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Uber shareholders get closer to passing lobbying disclosure proposal

 2 years ago
source link: https://finance.yahoo.com/news/uber-shareholders-closer-passing-lobbying-231354195.html
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Uber shareholders get closer to passing lobbying disclosure proposal

Rebecca Bellan
Fri, May 13, 2022, 8:13 AM·4 min read
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Uber shareholders voted against a proposal that would have required the ride-hailing company to fully disclose its direct and indirect lobbying activities and expenditures, according to a regulatory filing released Thursday.

The measure has been proposed and rejected by shareholders before. But this year's results show a growing number of shareholders are keen to require full disclosure. About 45% of shareholders voted in favor of the measure as opposed to around 30% last year. Two-thirds of shareholders need to vote in favor for a proposal to be approved.

The uptick in votes in favor signals a win for advocates in what will surely be a years-long process to encourage companies like Uber to be more forthcoming in their spending.

The proposal, submitted by the International Brotherhood of Teamsters, argues that Uber's lack of full disclosure around its lobbying activities represents multiple risks for the company. The most obvious one is the potential reputational risk to the company if it's revealed that it backs a cause considered unsavory by its users.

The real risk, argues Teamster senior government analyst Michael Pryce-Jones, is to the sustainability of the business itself.

“How much do you have to lobby to grow your markets or defend your markets? Because that goes to the resilience of how you’re earning money,” Pryce-Jones previously told TechCrunch.

The vote comes as Uber, along with other app-based gig companies, continues to lobby hard and support so-called grassroots organizations dedicated to independent worker rights in order to keep gig workers classified as contractors, rather than employees. Uber's business model depends on not paying drivers and delivery workers as employees, which includes benefits like minimum wage and sick leave, as well as protections like workers' compensation.

Most infamously, Uber contributed around $30 million to a campaign (that ended up raising more than $200 million) in California to pass Proposition 22. The company is actively working to pass similar laws in other states around the country, like Massachusetts, Colorado, Illinois, New Jersey, New York and Washington.


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