Uber and Lyft drivers in Seattle can now negotiate their benefits and wages as the City Council has just passed a bill that allows them to form labor unions.
The implications of this bill not only set a precedent for other cities in the United States, but they can also affect the current status of drivers who are only classified as contractors.
Members of the Seattle City Council unanimously voted at 8-0, but the city's mayor Ed Murray said he does not plan to sign the bill. Nevertheless, it can become a law without his signature.
The new bill will also affect taxis and for-hire transportation companies. With that, it is highly likely that affected companies will appeal against the decision.
Fighting For Employee Rights
Councilmember Mike O'Brien said they have talked to Seattle drivers who make sub-minimum wage. Some of these drivers only earn about $3 per hour after expenses.
Companies such as Uber have "turned a deaf ear" to the concerns of drivers, O'Brien said. The bill was created out of necessity after seeing how little power drivers themselves have in working for a living wage.
"This is groundbreaking legislation and I am proud Seattle is continuing to lead the nation in advancing labor standards for our workers," said O'Brien.
Uber driver Peter Kuel believes the new ordinance is a good sign. "By giving us rights, this law will help all of the drivers and also help our communities," said Kuel.
The new ordinance does not automatically turn drivers into employees, but it gives them more rights than contractors. On-demand startups are becoming more common, and yet they only classify their drivers as 1099 and not as W-2 employees.
Contractors Have Flexible Time
Uber and Lyft are facing lawsuits in cities around the country, all threatening to change the classification of drivers and their manner of compensation. The two companies are against claims that drivers are employees instead of independent contractors.
Supporters of the new ordinance said that on-demand drivers work long hours without health care and proper employee rights. Those who oppose said that in the first place, the flexible schedule of freelancing is what attracted many workers to the jobs.
Lyft spokesperson Sheila Bryson said drivers under its startup are entirely in control of when or where they work. "This flexibility is exactly why the service is so popular with people looking to make extra income," said Bryson.
Bryson said the new bill endangers the privacy of drivers, imposes considerable costs on the city and on passengers, and clashes with federal law.
"We urge the mayor and full council to reconsider this legislation and listen to the voices of their constituents who choose to drive with Lyft because of the flexible economic opportunity it offers," added Bryson.
Still A Long Battle
Despite the passing of the new bill, the battle for employee rights will still be a long one. Half of active Lyft or Uber drivers in Seattle will need to elect a representative, and it may not be resolved until next year, experts said.
Photo: Carlos Pacheco | Flickr
