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Seattle City Council Empowers Lyft And Uber Drivers To Unionize

16 Dec

Seattle City Council Empowers Lyft And Uber Drivers To Unionize

Uber’s driving partners might negotiate their working conditions and compensation in the future.

App-based taxi service provider, Uber’s driving partners might be able to establish a union. After destroying his Kia Soul’s clutch in 2014, Don Creery purchased a new vehicle with an auto transmission. He came in debt for the automobile because he thought it was an investment. He had recently started to drive fulltime in Seattle for the cab companies, Uber and Lyft, and was earning money.

Since the two ride-sharing enterprises have lowered the fares, they charge riders for riders and ended the incentives offered to hire drivers. Mr. Don stated he now has to drive for 10 to 12 hours per day to receive the funds he previously did when he worked for 6 to 8 hours.

Uber news reported that today, the Seattle City Council aims to carry out voting on a tabled legislation to give on-demand freelance drivers, such  as Don, the right to jointly negotiate on working conditions and pay – a right which is already reserved for daily workers. Mr. Don and many other fellow motorists in the city played a role in pushing the bill. The hope, he stated, is to equip the motorists with a bargaining ability as far as the amount they would be paid is concerned.

“Early on, these companies were really great,” stated Mr. Don, 62, a lifelong resident of Seattle whose key source of income is driving for Lyft and Uber. “But when it comes down to it, they keep lowering their rates on us.”

If Mr. Don and his fellows are successful – and initial indications are optimistic – the group they are a part of, the App-Based Drivers Association (ABDA), would turn into the first association of on-demand contract employees in the US to get an unequivocal right to unionize which can run afoul of federal legislation.

If employees in other American cities also push to empower themselves as Creery and his fellows have done, it can spur a possible shift in the American contract employees’ rights, one that can affect the bottom line of Uber and its $62.5 billion estimation.

The proposed legislation is the most recent worker issue to trouble Uber, which is known for letting persons hire rides through a smartphone application and earns an approximately 20 to 30% share of every fare. The most valued startup has been questioned regarding the classification of its employees as full time workers instead of contractors, and Uber has been involved in the lawsuit.

Uber technologies informed that the Office of the California Labor Commissioner’s ruling classified transportation service provider’s former driver as a worker. The Californian organization has filed an appeal against the decision.

 

 

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Posted by on December 16, 2015 in Technology, UBER

 

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