CEO DATELINE - U.S. Chamber sues Seattle for allowing rideshare drivers to unionize
CEO DATELINE - U.S. Chamber sues Seattle for allowing rideshare drivers to unionize
- March 4, 2016 |
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Walt Williams
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The U.S. Chamber of Commerce is challenging a Seattle ordinance giving taxi drivers and drivers in ridesharing services like Uber and Lyft the ability to unionize.
In a lawsuit filed with U.S. District Court in Seattle Thursday, the Chamber argues that not only does the ordinance violate federal law, but it would burden innovation and drive prices up for consumers.
"This ordinance threatens the ability not just of Seattle, but of every community across the country, to grow with and benefit from our evolving economy," said Amanda Eversole, president of the Chamber's Center for Advanced Technology & Innovation.
The Seattle City Council voted in December to give collective bargaining rights drivers for app-based ridesharing companies, for-hire companies and taxi divers, the Seattle Times reported. The ordinance is the first of its kind in the country. However, opponents say the city lacks the authority to extend collective bargaining rights beyond what is spelled out in the National Labor Relations Act.
The Chamber argues that Congress expressly left independent contractors unregulated and excluded them from collective-bargaining requirements. The business group said there are nearly 40,000 municipalities in the U.S., so if Seattle's ordinance is left to stand, then thousands of other cities and communities could pass similar legislation. http://uscham.com/1QXIx8K
A spokeswoman for Seattle City Attorney Pete Holmes told the Seattle Times that the city's response to the lawsuit would be filed with the court. Seattle Mayor Ed Murray, who refused to sign the ordinance when it passed, said he supports workers' right to unionize but saw the lawsuit "will now inject a level of uncertainty for the city on how best to proceed with any future legislation and implementation." http://bit.ly/1LEt4I9
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