Dive Brief:
- Within a day of the recent $100 million announced settlement between Uber and drivers in California and Massachusetts, California drivers have responded by asking the Teamsters to help them form a driver's association, according to various media outlets. Allowing such associations was part of the settlement.
- USA Today reports that drivers approached the national union seeking assistance in areas such as managing benefits, dispute resolution procedures, legal and tax services, advocacy assistance, and, finally, having "a stronger voice on the job."
- Rome Aloise, an international vice president with the California Teamsters, told USA Today that the exact association structure is still being hammered out. It likely does not mean members would become official Teamsters union members. At this point, it's unclear how it would unfold, though USA Today said the association could be funded by Uber.
Dive Insight:
While the Teamsters' role in the Uber driver settlements is yet to be clarified, the two settlements do not mean that the Uber independent contractor model has passed legal muster entirely. In fact, drivers in those two states may not be thrilled with the settlement, though they are free to pursue individual legal actions if they choose, outside the class.
Similar legal suits by those demanding to be treated as employees are rattling the on-demand economy, which launched largely hoping independent contractors could be used to meet a flowing demand. So far, there have been a few companies who started with an Uber-like model but have since switched their workers to employees.
The drama over worker classification is far from over, that much is clear.
