Seattle to decide if Uber, Lyft can unionize

While city council voted 8-0 in favor of the rule change, Seattle Mayor Ed Murray yesterday said he does not plan to sign it. The bill still can become law even without his signature.

Members of the Seattle City Council agree that there will be legal issues to overcome with letting Uber and Lyft drivers to unionize, but deemed it to be worth the trouble.

Speaking at an event in Seattle earlier this year, Uber political strategist David Plouffe called the city’s proposed ordinance “puzzling” and “generally believed to be flatly illegal”, reported the website Geekwire. The council is scheduled to vote on whether to allow drivers for ride-hailing companies such as Uber to form unions and collectively bargain for better pay.

Uber has long claimed that its drivers are independent contractors and thus ineligible for such federal protections, and that allowing independent contractors to engage in collective bargaining may constitute price-fixing under federal law.

In a statement after the vote, a spokeswoman for Lyft said that the ordinance passed would threaten the privacy of drivers, impose costs on passengers and the city and conflict with federal law.

“As this ordinance takes effect, my administration will begin its work to determine what it will take to implement the law”, he added. Only drivers who meet certain criteria will be eligible to be represented by the organizations sanctioned under the law.

The new ordinance would require companies to give the city a list of its local drivers. Other drivers across the United States will certainly view this win as a major influence on future actions taken in their own cities.

The vote is seen as a victory for the App-Based Drivers Association, or ABDA.

So which is it: should Uber and Lyft drivers be classified as employees or independent contractors?

Uber Technologies Inc is known as Everyone’s Private Driver.

The companies have vowed to challenge the legislation in court.

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.

Uber and Lyft say drivers have flexibility in deciding when they work and how many hours, and many chose to drive to supplement their income.

“Lyft provides consumers with convenient and affordable transportation, and drivers with the ability to make money in their free time”. Opponents including Uber claim that federal labour laws preempt such lawmaking by a city.

In a move that could set a precedent in other cities, Seattle has just passed legislation that will allow Uber and Lyft drivers to unionize, meaning they can negotiate pay and benefits.