What appeared to be mostly supporters packed council chambers before the vote, with loud cheers and applause each time someone spoke in support and even more applause when the ordinance was passed.
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SAN FRANCISCO Seattle on Monday became the first USA city to pass a law giving drivers for Uber and Lyft the right to unionize, a new challenge to the ride companies’ success as they confront mounting dissatisfaction over how drivers are treated.
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Reaction has been mixed after the Seattle City Council voted to give drivers for ride-hailing companies, taxis and for-hire transportation companies the right to unionize over pay and working conditions.
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Under the ordinance, proposed by Councilmember Mike O’Brien, a company would be required to provide the city with a list of its Seattle drivers.
“The only way we can achieve what we deserve as a driver is by working together”, he said.
In a written statement after the vote, an Uber spokesperson said that the company “is creating new opportunities for many people to earn a better living on their own time and their own terms”.
Uber chief adviser David Plouffe, the political strategist behind the 2008 Obama campaign, spoke recently of the ordinance in a Seattle speech. Uber’s business model is built on the concept of independent contractors.
“I would like to have a regulatory environment that allows companies to adapt and meet their needs, but not at the expense of their workers”, O’Brien told CNNMoney. “Groups of independent contractors engaging in collective bargaining could also run up against illegal price-fixing issues under antitrust law”. Technology has made it easier to get services from people who are not classically controlled by employers, but the concern on the labor side is whether such workers are going to be protected, he noted.If the Seattle ordinance survives challenge, well see it in a lot of cities, he added. Selfishly, the availability of reliable drivers and both the hailing and payment mechanisms works great for me and many others.
And so once more, the big, glaring problem is that no one knows for sure whether workers in this new platform-based economy should be considered employees or independent contractors.
Most councilmembers believe that for-hire drivers are independent contractors and are excluded from such protections. It is important to state that Uber is now facing a lawsuit in California over worker classification. But rewriting the rules to include such a third category is unlikely to happen quickly and could leave tens of thousands of workers stranded in murky legal territory in the interim.
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Although the bill doesn’t address drivers’ employment status, it does extend to them rights usually reserved for employees.
