Uber and Lyft Drivers to form unions in Seattle

Seattle has become the first USA city to allow drivers with app-based ride services like Uber and Lyft to have the right to join unions.

It was a unanimous vote in favor of the legislation, which will likely be used as a test case for this new variation of the workforce – how will it affect non-transportation on-demand services, such as TaskRabbit, Postmates, Luxe, Amazon Prime, and many others.

Companies like Uber and Lyft for rides, TaskRabbit for odd jobs and GrubHub for food delivery are attracting workers by offering more flexibility than conventional jobs. “I remain concerned that this ordinance, as passed by the council, includes several flaws…”

The new ordinance, which applies not just to drivers with ride-hailing companies, but also to taxicab and other contracted, for-hire drivers, will give them the option to form a union and bargain together for their contracts.

Uber and other opponents to the Seattle ordinance argue that federal law prohibits independent contractors from collective bargaining, since the law only covers employees. The plaintiffs named in the suit say they’re Uber employees, not independent contractors, and have been shortchanged on expenses and tips. “As this ordinance takes effect, my administration will begin its work to determine what it will take to implement the law”, Mr. Murray said in the statement.

Seattle has been a national leader on workers’ rights, such as gradually raising the minimum wage to $15 and requiring most employers to provide paid sick leave.

The drivers have a long process ahead to get organized, said Saad Lemouchi, an Uber driver who supported the measure at Monday’s council meeting.

City council member Nick Licata referred to the vote as “history-setting in what we’re attempting to do here in terms of advancing the rights of drivers”, according to The New York Times.

A man drives a sedan with an Uber sticker on it.

Uber is widely expected to sue, although Lyft said it did not have plans to sue. Uber, for example, might drop its minimum charge rates without approval from drivers. They work closely with Teamsters Local 117.

While drivers and activists flooded out of City Council chambers to offer congratulations on Monday afternoon, many said that the battle was not yet over. “They feel so bad”, Takele Gobena, a pro-union Uber driver, told The Seattle Times.