Massachusetts voters on Tuesday approved a ballot measure that would allow rideshare drivers to unionize, making the state the first state to allow drivers for app-based companies like Uber and Lyft to form unions.
According to the Associated Press, 94% of precincts reported that 53.9% of voters supported new legislation that would allow rideshare drivers, who companies consider independent contractors, to organize and bargain collectively over wages and benefits. announced that it supported the framework. Voting is mid-Wednesday.
Supporters said the ballot measure could serve as a model for other states to allow Uber and Lyft drivers to unionize and spur efforts to organize drivers across the country.
The Massachusetts vote was the latest in a long-running battle in the United States over whether rideshare drivers are considered independent contractors or employees entitled to benefits and wage protection.
Research shows that using contractors can cost businesses as much as 30% less than employees.
Uber and Lyft drivers, including about 70,000 in Massachusetts, do not have the right to organize under the National Labor Relations Act, a federal law that only covers actual employees.
The Massachusetts measure, known as Question 3, would allow drivers to form a union after collecting signatures from at least 25% of active drivers in Massachusetts.
The bill would allow companies to form associations and bargain jointly with labor unions during state supervision negotiations.
The measure was supported by the Service Employees International Union and the International Association of Machinists and several political leaders, including the state's Democratic Attorney General, Andrea Campbell.
In June, Campbell ordered Uber and Lyft to pay $100 million to settle allegations that they adopted a $32.50-an-hour minimum wage standard for Massachusetts drivers and unfairly treated drivers as independent contractors rather than employees. Reached a settlement requiring payment of $75 million.
As part of the settlement, both companies gave up their support for a since-defunct ballot measure that would have legislated the status of drivers as contractors.
However, the settlement stopped short of recognizing the driver as an employee.
Uber and Lyft chose not to campaign against Question 3, but both said they had concerns about specific language in the measure that they expect the state Legislature to address.
Question 3 was proposed before the industry withdrew another ballot measure, which its supporters argued offered drivers the best path to securing better working conditions after the settlement.
Question 3 divided the local labor movement, with some activists saying it did not go far enough.
Some opponents argued that it could violate federal law and could face legal challenges.
