Seattle becomes first US city to let Uber drivers unionize

He added that he was concerned about “the relatively unknown costs of administering the collective bargaining process and the burden of significant rulemaking the Council has placed on City staff”.

State legislators in OH and Florida are moving ahead with regulations governing Uber and other ride services that would designate all drivers as independent contractors, bolstering a critical but much-disputed aspect of Uber’s business model.

Reaction has been mixed after the Seattle City Council voted to give drivers for ride-hailing companies, taxis and for-hire transportation companies the right to unionize over pay and working conditions.

It’s not clear what effect Seattle’s new law will have, and Uber will likely challenge the law in court, arguing that collective bargaining among independent contractors could be considered price-fixing under federal antitrust law.

“While the innovative new way to hail rides in Seattle is a boon to many of us who need a ride”, reads the bill before the City Council, “the drivers face many challenges, particularly those drivers who depend on this work for a living and yet fail to earn even minimum wage due to reasons beyond their control”.

Uber is facing a class-action lawsuit in federal court in California over worker classification.

“As a cab driver, making a living has become really hard”, said Aamar Kahn”, a Seattle-based taxi driver, on a Teamsters blog supporting the bill.

Uber says drivers have flexibility in deciding when they work and how many hours, and many chose to drive to supplement their income. Drivers would be represented by nonprofit organizations certified by the city.

Uber, a company valued this month at $62.5 billion after a new investment according to the Times, relies on 400,000 drivers nationwide.

The Teamsters Union Local 117 also celebrated the vote, while the National Right To Work Legal Foundation criticized it as a violation of drivers’ rights.

“Unfortunately, the ordinance passed today threatens the privacy of drivers, imposes substantial costs on passengers and the city, and conflicts with longstanding federal law”, Lyft’s statement said. It helps with having a voice, ” said Palmer, who drives about 50 hours a week. We dont get treated as partners, ” said Fasil Teka, 40, who drives part time for Uber and works full time for a for-hire company. O’Brien said. “And the idea is, can we give them the power to negotiate the terms of their employment or some power to do that?” Some drivers worry, however, that the companies can cut rates or otherwise shift working conditions without notice.