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56 This chapter discusses the potential impacts of vehicle automation on labor, including key stakeholders, potential challenges, and strategies to help overcome these challenges. Tools to Address Labor Impacts Tools included in this chapter: ⢠Labor areas that may be impacted by transportation innovations. ⢠List of stakeholders that may alter their existing roles and responsibilities due to labor impacts. ⢠Potential challenges and strategies to address these challenges for labor. The growth of MOD and AVs may impact labor in a variety of ways. Vehicle automation will likely change labor roles, create new employment opportunities, and disrupt incumbent industries. These changes to existing labor roles and potential opportunities and challenges may require stakeholder consideration and the implementation of strategies to address possible challenges. Labor Stakeholders The transportation industry is made up of a variety of stakeholders including regulators, service providers, and the workforce. The implementation of AVs may affect each stakeholder. Information on the potential impacts of AVs on these stakeholders is provided in the following sections. Potential Impacts MOD is contributing to employment growth within some parts of the trans- portation sector (e.g., demand for TNC drivers), disrupting other jobs (e.g., vehicle dispatchers), and in some cases creating downward wage pressure (e.g., taxi, limousine, and livery drivers). The impact that AVs will have on labor is highly uncertain; potential labor impacts include: ⢠Associated Industries: Industries indirectly related to transportation (e.g., emergency responders, vehicle insurance workers) may witness impacts (e.g., less congestion); ⢠Access: New modes may increase access to jobs (e.g., jobs located further away); ⢠Emerging Positions: New positions may arise as a result (e.g., fleet inspector, remote operators); ⢠Skills: Necessary skills for certain jobs (e.g., vehicle mechanic) may change; and C H A P T E R 8 Labor Impacts
Labor Impacts 57  ⢠Workforce Development: Emerging modes may require retraining current staff or hiring new, differently skilled staff. Potential labor impacts are further discussed in NCHRP Web-Only Document 331. Vehicle automation could create demand for new jobs, such as vehicle attendants to help people with disabilities, security personnel, and fleet services (e.g., data analysts, AV mechanics, custodians, computer engineers). However, there is also the potential for AVs to reduce employ- ment in other areas, such as professional drivers and in ancillary services that support human- driven vehicles (e.g., auto-oriented dining and hospitality jobs, vehicle maintenance). In addition to changing the number and types of available jobs, vehicle automation could also disrupt tradi- tional labor responsibilities. Regulators Transportation is regulated by a variety of stakeholders at the federal, state, and local levels of government. Other jurisdictions, such as airports, may have unique authority that enables the regulation of ground transportation that access and egress from their facilities. ⢠Federal Agencies: Implement legislation and regulations pertaining to labor protections and tax policy. ⢠State and Local Authorities: Establish regulatory requirements (e.g., liability insurance). Local authorities can establish their own regulations in the absence of state laws. ⢠Airport Authorities: Regulate ground transportation access and egress from airports (e.g., TNCs). Airports could impact labor policies pertaining to those services in some jurisdictions. Service Providers Transportation services can be offered through a variety of providers. These providers include private and public operators as well as human and goods transportation services. ⢠Supply Chain Managers: Provide long-distance goods delivery and shipping and may face long-term impacts from automated long-haul trucks. ⢠Public Transit Agencies: Typically, employ represented (i.e., unionized) employees who may be entitled to collective bargaining and other labor protections. ⢠Taxi Companies: Provide prearranged and on-demand vehicle services for compensation through a negotiated price, zone pricing, or a taximeter. ⢠TNCs: Provide prearranged and on-demand transportation services for compensation that connect drivers of personal vehicles with passengers. Workforce The workforce that supports the transportation industry will likely be impacted by AV imple- mentation. This includes both unionized and non-unionized workforces. ⢠Public Transportation Unions: Represent staff and negotiate compensation, benefits, and working conditions. Union roles vary by state-based labor laws and collective bargaining agreements. ⢠Taxi Drivers: May be owner-operators, employees, or independent contractors of cab com- panies, depending on the local taxi regulations. ⢠Taxi Driver Unions: Represent drivers and may offer dispute resolution, organize strikes, and provide collective bargaining representation. May also work with regulatory agencies to negotiate wages, working conditions, regulated fares, and labor standards.
58 Shared Automated Vehicle Toolkit: Policies and Planning Considerations for Implementation ⢠Non-Unionized Workers: Do not have bargaining representation and are not allowed to strike. However, they may request benefits from employers or organize fellow workers to discuss workplace conditions. ⢠TNC Drivers: In many jurisdictions, TNC drivers are considered independent contractors. AVs could generally impact the workforce by replacing the number of unskilled or lower- skilled jobs with a lower number of higher-skilled jobs. This is because the proliferation of AVs requires them to be more profitable than human-operated vehicles, necessitating the reduction in labor costs and roles. It is possible that some indirectly associated jobs (e.g., vehicle cleaners, ADS programmers) may be added as a result of the growth of AVs; however, the added jobs may be in remote locations, while job losses may be more localized. Independent Contractor Legislation In September 2019, the California legislature passed Assembly Bill 5 (AB 5) to reclassify many California sharing economy workers as employees and add employee protections and benefits for these job classifications in state labor law. AB 5 establishes a three-part test to determine whether a worker is an employee or independent contractor. Effective January 1, 2020, hiring entities are required to classify workers as employees unless they meet all three of the following conditions: ⢠The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact. ⢠The person performs work that is outside the usual course of the hiring entityâs business. ⢠The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed. As of August 2020, pending litigation was underway to determine if Lyft and Uber drivers should be classified as independent contractors or employees in California. Seven states (Arizona, Florida, Indiana, Iowa, Kentucky, Tennessee, and Utah) have passed laws exempting sharing economy workers from being classified as employees, as of August 2020. New York and New Jersey are expected to follow suit in the coming year. Several sharing economy companies are lobbying for a federal bill that would supersede independent contractor re-classification, such as the California legislation. Several companies are also lobbying state-level ballot propositions to repeal enacted legislation, such as AB 5. Source: Marr 2020. Potential Labor Challenges and Strategies AVs may impact labor stakeholders in a variety of ways. Table 13 sum- marizes these potential labor challenges and actions. Appendix B: âSample Policiesâ includes an example of a policy that can be used to address potential labor challenges.
Labor Impacts 59  Funding for Workforce Retraining Programs In 2018, H.R. Bill 6200 was introduced to the House of Representatives to provide up to $25 million in grants for workforce retraining programs. These programs would target workers who are at risk of displacement or job loss due to increased transportation automation. In June 2020, the bill was referred to the Subcommittee on Highways and Transit and Subcommittee on Railroads, Pipelines, and Hazardous Materials. Key Takeaways ⢠While the impacts of automation on labor are uncertain, AVs could reduce the need for some jobs while also creating new employment opportunities in other specialties. ⢠The potential challenges of AVs can be addressed through a variety of strategies, such as the creation of labor policy roadmaps, engaging in partnerships, and retraining and workforce development programs. Potential Challenges Potential Strategies R eg ul at or s: St at e an d Lo ca l A ut ho ri tie s ⢠AVs may result in a decreased or increased need for regulatory staff (e.g., fewer police officers because vehicles can be regulated, need for vehicles to be inspected) (Hedlund 2018). ⢠Widespread deployment of self- driving vehicles could eliminate the need for some jobs and create downward wage pressure for other jobs (Reinicke 2018). ⢠Establish an agency roadmap for transitioning regulations to address emerging issues raised by vehicle automation (e.g., vehicle inspections, consumer protection, insurance). ⢠Convene stakeholder workshops on workforce changes to gain a better understanding of the potential impacts of vehicle automation on labor and to develop policy responses. ⢠Respond to potential impacts from vehicle automation through actions such as workforce development programs to develop skills that complement emerging technologies. Se rv ic e Pr ov id er s a nd P ub lic T ra ns it A ge nc ie s ⢠Public-sector partners, such as public transit agencies, may resist adopting AVs due to labor concerns (Leonard, Mindell, and Stayton 2020). ⢠Workforce roles may change as automated fleets evolve. These changes may include personal assistants for automated paratransit or new, high-tech skilled staff for inspecting and maintaining automated transit buses at all levels of automation (Leonard, Mindell, and Stayton 2020). ⢠Mobility service providers and public transit agencies can work with labor unions to develop a framework for AV fleet adoption and address potential concerns with automation. ⢠Operate gap-filling automated transit services in areas with no or limited service and during off- peak times (e.g., using microtransit to connect to transit stops during late nights) to avoid competing with service provided by human-driven vehicles. However, AV operations may need to begin deployment on high-capacity roads and routes that are easier to navigate. ⢠Recognize emerging workforce requirements, identify new future career paths, and conduct succession planning to prepare for AVs. ⢠Public transit agencies can work with the FTA, industry associations, and the private sector to identify core training needs. Academic institutions may be able to partner and assist with workforce training. R ep re se nt ed a nd N on - R ep re se nt ed W or ke rs , Pu bl ic T ra ns po rt at io n U ni on s ⢠AVs used for public transit may result in the need for a smaller workforce or necessitate workforce development and retraining (Shaheen and Cohen 2018a). ⢠Coordinate with public transit agencies on retraining staff to gain skills required for AVs and provide advance notice on the adoption of automated fleet vehicles. Reprinted from Shaheen, Cohen, and Stocker, forthcoming. Table 13. Potential labor challenges and strategies.
