Seattle’s try to unionize Uber, Lyft drivers hits roadblock

Bloomberg

Seattle’s first-in-the-nation law allowing drivers-for-hire to unionize was blocked by a federal judge, giving a boost to ride-hailing companies such as Uber Technologies Inc. and Lyft Inc. US District Judge Robert Lasnik in Seattle on Tuesday granted a request by the US Chamber of Commerce to put the city’s ordinance on hold before it goes into effect. The organization argued the law improperly treats independent contractor drivers as employees because it allows them to unionize and collude through collective bargaining over their fares. Uber and Lyft are members of the chamber.
The fight over whether Uber and Lyft drivers can unionize is part of a larger conflict over how Internet-based-services companies treat their workforce. Uber’s business model is under attack worldwide by the taxi industry, local governments and drivers.
Charlotte Garden, an associate law professor at Seattle University, said the ruling could mean the union drive in Seattle “loses some of its momentum, if drivers start to think collective-bargaining rights are a lost cause.” The judge emphasized that his ruling is temporary, and not a sure sign that the Chamber of Commerce will ultimately prevail. Saying the city’s ordinance would likely disrupt the ride-hailing companies’ businesses in “fundamental and irreparable ways,” Lasnik ruled that it should be blocked while the case is decided.
“There can be no doubt that ride-share companies such as Uber and Lyft have, at a truly startling rate, created havoc in this industry using a business model that simply did not exist before its recent technological development.” Lasnik wrote. The judge said it was uncertain, though, whether state law allows the city’s ordinance.