Dive Brief:
- The Seattle City Council voted unanimously Monday to give drivers the ability to collectively bargain with taxi companies, for-hire vehicle companies and app-based "sharing economy" companies like Uber and Lyft, according to the Seattle Times.
- The Times reports that the National Labor Relations Act gives employees the right to collective bargaining, but drivers affected by Monday's vote are categorized as independent contractors, rather than employees, so NLRA protections don’t apply.
- The unanimous 8-0 vote make Seattle the first American city to give contract drivers a structure with which to organize and to bargain for agreements on issues such as pay and working conditions, according to the Times.
Dive Insight:
Uber and Lyft specifically opposed the ordinance, arguing that the proposal violates federal labor and antitrust laws -- meaning the city likely will be sued.
“Uber is creating new opportunities for many people to earn a better living on their own time and their own terms,” the company said in a statement Monday. Seattle's mayor, Ed Murray, is not in favor of the ordinance and will not sign it, though his signature is not required, according to the Times.
HR leaders working with companies who offer sharing economy services have no doubt been following the ongoing national debate about what role governments should play in the country’s growing app-powered gig economy, according to the Times. Apart from Uber and Lyft for rides, the Times story mentioned companies such as TaskRabbit for odd jobs and GrubHub for food delivery, which attract workers by offering more flexibility than conventional jobs (but no other benefits).
Labor activists and others believe that the gig economy workforce makes it too easy for companies to contract with independent workers and avoid paying minimum wages and benefits, according to the Times.
