Ride-hailing companies Uber and Lyft have been dealt a setback in their efforts to prevent their drivers in Seattle from unionizing.
US District Court Judge Robert Lasnik for the Western District of Washington state on Tuesday dismissed a lawsuit filed by the US Chamber of Commerce in March to block a Seattle ordinance that would allow drivers for ride-hailing companies to unionize. The Chamber, which counts Uber and Lyft as members, argued the ordinance violates antitrust laws by allowing independent contractors to collude through collective bargaining to fix prices.
Lasnik said in his ruling that the ordinance is an appropriate exercise of the city’s authority. However, a temporary order issued by Lasnik in April blocking the ordinance will remain intact.
The fight over Seattle’s ordinance is part of a bigger fight over what level of benefits are owed to independent contractors in the “gig economy.” Critics charge that Uber and Lyft reap a financial windfall by treating its drivers as contractors and thus avoiding higher costs such as paying benefits, overtime and insurance. If drivers unionize, they would have leverage in negotiating pay and perks.
Full Content: Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Canadian Breadmakers Settle Price-Fixing Lawsuit
Jul 25, 2024 by
CPI
EssilorLuxottica Open to Meta as Shareholder, Says CEO Francesco Milleri
Jul 25, 2024 by
CPI
California Supreme Court Upholds Proposition 22, Securing Independent Contractor Status for Uber and Lyft Drivers
Jul 25, 2024 by
CPI
Paramount Global Investor Sues to Block Skydance Media Merger
Jul 25, 2024 by
CPI
Software Vendors Win Class Action Status in Antitrust Case Against CDK Global
Jul 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – International Trade & Antitrust
Jul 26, 2024 by
CPI
What is Wrong with the WTO Discipline on Subsidies?
Jul 26, 2024 by
CPI
The Abiding Tension Between Trade Remedy Law and Antitrust
Jul 26, 2024 by
CPI
Trade and Antitrust: An End to Isolationism
Jul 26, 2024 by
CPI
International Trade Law and Domestic Regulation of Generative Artificial Intelligence: Divergent Approaches?
Jul 26, 2024 by
CPI