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Seattle’s Uber unionization measure a new economy test case
But as Councilmember Mike O’Brien explained to the AP, the ride-hailing service drivers are independent contractors, so the National Labor Relations Act, which allows for collective bargaining, doesn’t cover them. “Drivers say that with flexible and independent work with Uber, 50% of them drive fewer than 10 hours a week, 70% have full-time or part-time work outside of Uber and 65% choose to vary the hours they drive 25% week-to-week”.
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It was believed that the Seattle bill, if passed, would be the first in the United States that would allow collective bargaining rights for drivers of such services.
But the mayor also notes that while he will not sign the ordinance, that will not prevent the bill from becoming Seattle law.
Lea Vaughn, a University of Washington law professor, agrees with the ride-hailing companies that federal labor law would pre-empt the city ordinance. A union that allowed Uber and Lyft drivers to bargain for higher pay, benefits, and different fares-potentially to the detriment of consumers-could be deemed illegal per that law.
“It’s pretty much making minimum wage” after deducting costs, said Sean Janaba, 34, of Seattle, who has been driving for Uber for three years.
Like traditional employees in states without Right to Work laws that make union membership and financial support strictly voluntary, drivers who oppose union representation will face a choice: pay money to a union they don’t support or lose their ability to work with companies like Uber and Lyft to support their families.
Last week, a USA judge ruled that Uber drivers in California can enter an existing class action lawsuit against Uber over their employment status, even if their contracts have an arbitration clause.
David Rohrsheim, Australia and New Zealand general manager for Uber, has constantly reaffirmed that Uber’s driver partners are “certainly not employees” as they are independent operators who are free to come and go if they do not wish to drive at a certain time.
Many other drivers say they are satisfied and value the flexibility that comes with working for themselves. He wants to take the next step in the fight for workers’ rights and give them a say in their working conditions. Yet this issue is being litigated fiercely, with some drivers alleging that companies like Uber and Lyft are in fact employers that exercise a high degree of control over their workers. Under the ordinance, nonprofit groups will be formed as the bargaining representatives for drivers, provided a majority of drivers want representation.
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. In some places, workers formed app-based drivers associations affiliated with local unions.
“I think one really great thing about the proposed Seattle ordinance is it takes away some of the incentive to misclassify drivers [as independent]”, Garden said.
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“This is incredible”, said Saad Melouchi, 30, who drives for Uber.