Seattle was the first US city to pass a law allowing Uber and Lyft drivers to unionize. But since that law passed in 2015, the business community has continually challenged it.
A federal appeals court sided with the business community on Friday, May 11. The 9th US Circuit Court of Appeals issued a decision saying Seattle doesn’t have the authority to say whether drivers can collectively bargain over the fees ride-hailing companies charge them, according to Reuters.
The court was examining Seattle’s law because of a lawsuit brought last year by the US Chamber of Commerce, which lists Uber and Lyft as members. The chamber said Seattle’s ordinance violates antitrust laws because it could allow independent contractors to collude through collective bargaining and fix prices.
“The court’s decision is a win for rideshare drivers, riders and the entire Seattle community,” said Uber spokesman Caleb Weaver.
Lyft, too, said it was pleased with the decision. “This positive development will maintain the flexibility of drivers to choose when, where and for how long they drive—the very things that make Lyft so attractive to drivers and useful for passengers,” Lyft spokesman Adrian Durbin said.
Though the 9th Circuit ruled Friday that ride-hail drivers couldn’t negotiate fees, it did say states could regulate the rates Uber and Lyft charge passengers. It also said city laws on collective bargaining couldn’t be pre-empted by federal labor law.
Full Content: Reuters
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