Uber,Lyft Drivers Demands for Unionizing – More than 14,000
The driver partners from hail-ride app companies like Uber and Lyft have started demanding for union for themselves as they also need recognition as employees so that they can fight back to the companies together and sought for any resolutions for their problems. Uber and Lyft drivers are treated by their employers as independent contractors rather than employees, and hence the drivers are not able to fight for their own problems.
The companies keep changing their policies which mostly would be not favorable for the drivers and they would need a union and leaders to take up their problem and negotiate on the same with the companies. The National Labor Relations Board is the federal agency that formally recognizes unions and mediates labor disputes, and it does not recognize independent contractors as deserving of the same protections as employees which makes the driver partners of these companies lose the possibility of claiming the benefits and they don’t come under the federation at all.
In sometime around last year, New York Uber drivers have protested fare cuts, and demanded an option for passengers to tip which used to be one of the strict ‘Dont’s’ for the drivers. So nearly 14,000 drivers working for Uber, Lyft and other ride-share app companies joined together and signed union cards to showcase their major support in Unionizing.
Labor lawyer Ben Dictor, a partner at the firm Eisner & Associates, explained in an email that while independent contractors lack formal bargaining rights, “becoming a member can give an independent contractor access to benefits and a stronger, collective voice within their industry.
” He added that drivers working for app startups around the country are fighting for formal recognition as employees, in court and through local legislation, with mixed results. In Seattle, lawmakers passed an ordinance in December entitling Uber and Lyft drivers to union representation.
The 14,000 drivers who have signed up have easily exceeded the 30 percent threshold that is needed for forming an independent union according to the federal regulators. They also recommended starting an official vote. The cards signed by drivers indicate that they seek ATU membership and authorize the union to act as their collective bargaining agent and bring forward their problems that they face due to the continuous changes in the policies and make them bleed their own money. Recently Uber struck a deal with the International Association of Machinists and the independent Freelancers Union to form a new Independent Drivers Guild that would represent their workers.
Driver group demands that is needs attention:
The drivers claim that there has been a drastic cut in pay rates, incentives and other incomes though referrals which was initially their point of attraction towards the company leaving back the other taxi services and rental service that would be provided by individuals. Even after such kind of treatment by the employers, the drivers are hesitating to track back because of the loss of reputation in the previous employer and loss of personnel regular customers.
Initially there was a small amount that has to be paid to the companies who own and maintain the app as commission and that helped the drivers to earn for a very reasonable living. However gradually the commission was increased multiple times stating some extra feature has been provided for them and it is payable, which is mandatory though. Strict policies and regulations are being embossed on them considering the safety of the passengers by the government. The regulations are framed without considering the driver’s perspective of problems that they might face.
Since the company has introduced this ‘upfront pricing’, there are many complaints being raised by the drivers against their payments. The drivers claim that they are under paid for each trip whereas the customers are being over charged. By usual norms 25% of the total money paid by the customers goes into the company’s pocket as commission and the rest are the earnings of the driver.
Reports say that there are too many changes in the policies of the company which are unfavorable for the drivers as well. For instance, a driver complains that he has been paid only Rs.100 for the trip for which the customer has been charged Rs.300. Many similar cases are been found raised by the drivers throughout the world.
As a result, some drivers have found themselves disillusioned by the company’s promise to pay a livable wage, when the reality for many is closer to a minimum wage. While Uber has recently tried to appease its drivers with new policies like charging users a fee for keeping their drivers waiting, its business model is still dependent on ensuring that they remain independent contractors, without access to costly benefits like health care or retirement plans. In one recently settled lawsuit, Uber paid $100 million in a class-action settlement to drivers who felt they were deliberately misclassified as independent contractors when they were actually employees. The settlement allowed Uber to keep its contractor-based system in place, but highlighted the fragility of its underlying economics.
How the company handles the litigations?
These drivers who are working for app based taxi operators like Uber and lyft all over the world are fighting for formal recognition as employees legally also by filing cases in court and through local legislation. Last April, Uber is said to settle their litigations with drivers in California and Massachusetts, with the terms denying the drivers employee status and awarding them $100 million.
Later a judgment was over-laid stating that $100 million inadequate, and concluding that “a small portion of the $100 million amount reflects only 0.1 percent of the potential full verdict value of the case and it is no-where can be taken as compensation offered by the company for their employees.”
The machinist union has laid a condition of the agreement to form the Independent Drivers Guild that it should not try to formally unionize Uber drivers for five years. If the drivers are recognized as employees at any time (including within the period of the five year agreement), the drivers of the hail-ride app based company to unionize with the machinists.
This could happen as a result of a court, regulatory or legislative decision which could turn in favorable for the drivers. The Machinists Union also has a history of successfully organizing and unionizing black car drivers in New York City and helped them get benefited through many ways.
The agreement with Uber and the Freelancers Union is separate from the one they have with the Machinists, even though they were announced at the same time.
In spite of too many protests that includes the street protest the drivers managed to vent out their anger against the companies by too many protests like blocking the road, driving through one way, occupying the parking lots in the street for too long causing chaos in the city. The Committee members were positive and they were expecting some kind of favourable decisions by the government while over-laying the judgment on the cases. However even after many days after the protests of the hail-ride taxi drivers, the countries were not ready to bring these drivers into the labour federation.
Author Bio :-
Smith Felix is a senior copywriter in Zoplay, a leading digital marketing company located at Chennai. I love to write on a variety of topics including PHP scripts, the mobile app development and SEO. Cabily script is a clone of Uber, which developed by the tech gigs of my company.