Some have also questioned whether the city’s ordinance will conflict with federal labor law.
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Uber, a company valued this month at $62.5 billion after a new investment according to the Times, relies on 400,000 drivers nationwide.
“Are we employees or partners?”
The measure applies to all such drivers, whether they are paid by a taxi company, a for-hire company or a so-called transportation network company like Uber that uses an online-enabled platform to connect drivers and passengers.
Meanwhile, Mayor Ed Murray told the council in a letter Monday that he supports the right of workers to unionize but has concerns about the bill.
Uber and Lyft drivers are now able to unionize in Seattle. Uber and Lyft have insisted their drivers are not employees, so that’s an unlikely argument for the companies to make.
Uber did not immediately respond to a request for comment. Drivers in other parts of the country have watched events in Seattle to determine how they might proceed in their cities.
Proponents of reform say that on-demand employees are working long hours without health care and adequate employee rights, but others say that the flexible schedule of freelancing is what attracted numerous on-demand workers to the jobs in the first place.
Uber’s classification of its drivers as independent contractors means drivers are not entitled to many standard worker rights, like minimum wage, overtime, or mileage reimbursements. 1099 refers to the tax form independent contractors receive from businesses and the bill, like Seattle’s, would allow workers to collectively bargain.
While largely supported by drivers, the ordinance has been strongly opposed by both Uber and Lyft, both of which have previously indicated their intention to challenge such legislation in court. The Seattle City Council voted unanimously Monday to approve legislation allowing the drivers, who are considered independent contractors by the companies, to organize.
Organizers would have 120 days to demonstrate that “a majority of drivers for a specific company choose to be represented”.
“The goal is not to hurt or decrease business for the company”, Smith said. The proposed bill would provide a route to collective bargaining and could have dramatic impact on the ride-service and taxi industries. Many have said they struggle to make a living, with some earning less than $3 per hour after expenses. If enough drivers join, a representative would be allow to participate in collective bargaining for things like minimum wage and benefits.
Lemouchi was excited to get to work on the next phase.
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“The only way we can achieve what we deserve as a driver is by working together”, he said.
