Seattle’s Uber unionization measure a new economy test case
That allows the companies to avoid paying their drivers benefits like overtime and health insurance.
Taxi drivers protest in front of city hall against the Uber ridesharing auto service in Toronto December 9, 2015.
Last week, a US judge ruled that many more Uber drivers in California could participate in a class action against the ride service over their employment status, even if they did not opt out of an arbitration clause in their contracts.
Supporters say many drivers are immigrants who depend on full-time work, but some make less than minimum wage and lack basic worker rights. On the other you have Uber and Lyft which have lowered the pay for drivers, and based on those hundreds of members of the App-based Drivers Association, the main hope is to give the drivers more say about how much they’re paid.
The City Council voted 8-0 in favor of the legislation, which is seen as a test case for the changing 21st century workforce.
“Lyft provides consumers with convenient and affordable transportation, and drivers with the ability to make money in their free time”.
“I said consistently during this debate that I support the right of workers to organize to create a fair and just workplace”.
“Unfortunately, the ordinance passed today threatens the privacy of drivers, imposes substantial costs on passengers and the City, and conflicts with longstanding federal law”, a Lyft spokesperson said, calling on the Mayor and full Council to reconsider the legislation.
Seattle Mayor Ed Murray (D) said that he would not sign the bill, instead opting to allow it to pass into law without his approval, because concerns he has with the legislation have not been resolved.
Neither company commented on how the union vote will sway their business in the Emerald City, but some had posited that it would result in increased fares. “They feel so bad”, Takele Gobena, a pro-union Uber driver, told The Seattle Times. It does not mean, however, that they will be considered employees – the bill refers to the workers as independent contractors.
The move comes as Washington considers what it can do to help build a safety net for workers in the on-demand economy. Sen.
“The proposal could also restrict the flexibility that attracts drivers to the Lyft platform, the vast majority of whom drive less than 15 hours per week”, Thelen continued.