Seattle became the first U.S. city to pass a law giving drivers for Uber and Lyft the right to unionize. The law approved unanimously by the Seattle City Council on Dec. 14 recognizes the right of drivers for on-demand ride companies, as well as taxi and for-hire drivers, to collectively negotiate on pay and working conditions.

Uber and Lyft both opposed the measure and argue that federal law precludes such local legislation. The law marks a new approach to addressing the heated debate over whether Uber and Lyft drivers ought to have some or all the legal rights of employees, which would substantially increase the companies’ costs.

Drivers have demanded the right to unionize to improve their working conditions. Low pay and the inability to collect unemployment benefits are among the complaints. At least 1,000 drivers have already organized as part of the App-Based Drivers Association.

These taxi services are at the center of a debate over the relationship between companies and their employees. Critics have charged that Uber reaps a financial windfall by treating its drivers as contractors and thus avoiding higher costs such as paying benefits, overtime and insurance. 

Reuters, Dec. 14

CNET, Dec. 15