Seattle City Council Votes to Allow Uber Drivers to Unionize

Seattle was one of the first major cities to dramatically increase its minimum wage, and this bill follows that progressive path by allowing drivers for services like Uber and Lyft, as well as taxi drivers, to collectively bargain for better wages and benefits.

Seattle’s City Council approved on Monday a proposal that would allow city taxi drivers to join labor unions.

Uber and other opponents to the Seattle ordinance argue that federal law prohibits independent contractors from collective bargaining, since the law only covers employees. A smattering of regulatory rulings has offered little clarity: Over the summer in California, the state’s labor commissioner said a San Francisco Uber driver was an employee of the company.

But it has been dealing in recent months with driver protests, local government bans and a class-action lawsuit by drivers.

Ride-share websites like Uber and Lyft have been magnets for legal and ethical business questions since their origin.

The story of Uber driver Tekele Gobena gave me a number of reasons to rethink my once-frequent use of app-based ride-hailing services.

During a limited public comment period, some for-hire drivers from companies like East Side For Hire said they felt left out of the process of crafting this bill and urged either a “no” vote or a delay.

Challenges to the law could center around the accusation that it enables workers to engage in price-fixing, in violation of antitrust law.

“Unfortunately, the ordinance passed today threatens the privacy of drivers, imposes substantial costs on passengers and the City, and conflicts with longstanding federal law”, the statement said. “I’m so happy for myself and for other drivers”.

The city’s council leaders have been a strong advocate of workers’ rights, recently enacting a $15 an hour minimum wage and requiring most employers to provide sick leave.

Uber defended its role in helping people earn a living while setting their own hours, and pointed out that the majority of the drivers work part-time for the company to augment the pay they get from other jobs, according to a prepared statement provided to tech blog GeekWire. And surely unions across the country have been watching the city’s initiative closely, so this just might be the beginning of a new nationwide struggle for Uber and Lyft.

The Seattle law does not rule on whether drivers are employees or contractors but extends to drivers rights usually reserved for employees.