The U.S. Chamber of Commerce filed a lawsuit against the city of Seattle over an ordinance allowing Uber and other for-hire drivers to unionize.
It is alleged that Seattle's ordinance violated the federal labor law that stifles the booming "sharing" economy. Thus, should be declared unlawful.
It cited that federal labor and antitrust laws will slow innovations in the "on-demand economy" that increases prices and lead to worse service for customers.
Amanda Eversole, president of the Chamber's Center for Advanced Technology and Innovation, told that the ordinance threatens the ability not just of Seattle, but of every community across the country, to grow with and benefit from the evolving economy.
"Technology companies are leading the charge when it comes to empowering people with the flexibility and choice that comes with being your own boss, and that is something to be championed, not stifled," she added.
An Uber representative said that collective bargaining and unionization did not fit the characteristics of how most partners use the Uber platform. Collective bargaining usually takes place in situations with a workforce of individuals who work scheduled hours, usually full-time, and intend to make that job a career.
"Drivers use Uber because they like to be their own boss. It's independent, flexible work they can fit around their lives: 50 percent drive fewer than 10 hours a week; 70 percent do other full-time or part-time work; and 65 percent vary the hours they drive each week. It's not clear a traditional union can serve such a large and varied group of people," Uber said in a statement.
Under the ordinance, a taxi for-hire or app-based vehicle-dispatch company were required to provide the city with a list of its Seattle drivers. Then a nonprofit organization - most likely a union - will use the list to contact the drivers.
Council member Mike O'Brien's, who authored the bill, emphasized the bill was only introduced out of necessity after witnessing how little power themselves had in working for a living wage. Seattle continued to lead the nation in advancing labor standards for its workers.
The ordinance required the company to seek an agreement with the representative organization. The city will enforce the ordinance's requirements through penalties such as fines, but not by revoking a company's license to operate.
