Teamsters Local 117 has achieved a significant victory in the fight to bring workers in the gig economy a voice on the job. The Seattle-based Local led the way in helping to pass a new law this November that will institute a first-ever grievance procedure for the City’s more than 30,000 Uber and Lyft drivers.

This groundbreaking legislation establishes first-in-the-nation legal protections and representation for drivers who seek to contest unwarranted deactivations in termination proceedings. The law also establishes a Driver Resolution Center to provide a wide range of support services to drivers.

“No longer will Uber and Lyft be the judge, jury, and prosecutor,” said John Scearcy, Secretary-Treasurer of Teamsters Local 117. “Now drivers will have the right to protect their jobs with representation through a fair and impartial process.”

Under the new law, the City will commission an independent study with driver input to determine minimum pay standards for drivers that aligns with Seattle’s minimum wage and accounts for expenses and benefits. A similar process in New York has led to significant increases in pay for drivers. The study will be used to set a compensation floor that will hold Uber and Lyft to the same minimum pay standards as other large employers in Seattle - $16.39 per hour starting in 2020, after expenses. Since it is a pay floor, drivers will have the ability to earn above the City’s established minimum wage.

“I support my family with this job,” says Sukchain Banwait, a long-time Uber and Lyft driver. “We pay for the car, we pay for the gas, we pay for the maintenance, and we pay for the depreciation. We work long hours, and we deserve to get paid fairly.”

"This is a historic step forward in our fight for fair pay and labor protections for Uber and Lyft drivers."

Over the last five years, Teamsters Local 117 has worked to improve conditions in Seattle’s ride-hail industry. In 2015, Local 117 spearheaded efforts to pass a law granting collective bargaining rights for Uber and Lyft drivers. Since then, the ride-hail giants have tied up that legislation in the courts with litigation intended to strip away those rights from drivers. In helping to pass the new law, Local 117 worked to build a coalition of over 60 housing, transit, labor, environmental, health, and social justice organizations.

“This is a historic step forward in our fight for fair pay and labor protections for Uber and Lyft drivers,” Secretary-Treasurer Scearcy said. “Drivers provide critical transportation services to our community. They must be granted a measure of job security and they must be paid a living wage. This legislation strengthens our community, gives drivers a voice, and helps transform our labor movement by establishing groundbreaking rights for workers in the gig economy.”  

Mayor Jenny Durkan after a meeting with Uber and Lyft Drivers.

Seattle Uber and Lyft drivers celebrated the passage of Mayor Jenny Durkan’s ‘Fare Share’ plan by the City Council today, calling it a historic victory that will provide long-sought labor protections and lead to higher pay for the City’s 30,000 ride-hail drivers.

This groundbreaking legislation establishes first-in-the-nation legal protections against unwarranted deactivations. The legislation will also establish a Driver Resolution Center to provide a wide range of support services to drivers.

“After I was hit by an uninsured motorist, Uber shut off my app. Uber calls it deactivation, I call it getting fired for no reason,” says Bob Gulbranson, who has driven for Uber for several years. “This legislation gives drivers a voice and a chance to be treated fairly.”

In addition to creating a grievance process and funding a worker organization for drivers, the legislation mandates that all drivers be paid no less than Seattle’s minimum wage after expenses by July 1, 2020. The City will commission an independent wage study with driver input to determine appropriate pay for drivers based on hours worked, expenses incurred, and benefits.

At today’s City Council budget hearing, drivers said they were eager to participate in the study to help develop a fair pay standard so that they can finally earn a living wage after expenses and stop the race-to-the-bottom in Seattle’s ride-hail industry.

“I support my family with this job,” says Sukchain Banwait, a long-time Uber and Lyft driver. “We pay for the car, we pay for the gas, we pay for the maintenance, and we pay for the depreciation. We work long hours, and we deserve to get paid fairly.”

The legislation is funded through a 51-cent tax on trips by ride-hail giants Uber and Lyft. Proceeds from the fee will also support community investments in affordable housing and transit improvements so that drivers and other working families in Seattle have a greater opportunity to live closer to where they work.

Teamsters Local 117 has worked with the App-Based Drivers Association to improve conditions for drivers in Seattle’s ride-hail industry. Both organizations are members of a Fare Share coalition of over 60 housing, transit, labor, environmental, health, and social justice groups that have come together to support the legislation and to make sure Seattle’s growth works for everyone.

At a press conference at City Hall on Wednesday, Uber and Lyft drivers urged the Seattle City Council to support their ‘Fare Share’ priorities to establish a minimum pay standard with driver input, combat unwarranted deactivations, and fund driver support services and other community investments through a 51 cent tax on the ride-hail giants.

At the event, drivers shared stories of how declining pay, a lack of basic labor protections, and sudden deactivation without recourse has impacted their livelihoods.  

“Since I started driving for Uber, my pay has been cut in half," said Sukhchain Banwait who started driving for Uber in 2013. "But while driver pay has gone down, Uber charges my customers more and more and pockets the difference. I'm glad the City is looking at establishing a fair minimum pay standard to stop the race to the bottom in driver pay." 

"I'm glad the City is looking at establishing a fair minimum pay standard to stop the race to the bottom in driver pay."

According to the Federal Reserve, 58% of gig economy workers cannot afford a $400 emergency expense. This means that thousands of drivers in Seattle are one vehicle repair away from an economic crisis. Drivers are especially vulnerable when they can be wrongly terminated by Uber and Lyft without recourse.

“Many drivers are suffering from unfair deactivations, leaving us with expensive car payments but without income to support our families,” said Mohamed Aria, one of the first Uber drivers in Seattle.  “Drivers are the ones who built this business, and we deserve to be treated fairly.”

Speaking in support of the drivers’ priorities, City Councilmember Teresa Mosqueda highlighted the need for an impartial process for drivers to appeal unfair deactivations. “I’ve heard from countless drivers who have been unjustly deactivated,” Councilmember Mosqueda said. "When you have a job, particularly a job that requires tens of thousands of dollars of investment, asking for a fair process for adjudicating deactivations is a necessary first step.”

Seattle Uber and Lyft drivers responded favorably to a proposal put forth by Mayor Jenny Durkan today to raise driver pay and allow drivers to appeal unwarranted deactivations. The Mayor’s plan would engage the driver community in developing a fair pay standard. It would also give drivers who have been terminated from a TNC platform access to a hearing with representation before an appeals panel.

“Drivers should not be fired by an algorithm without recourse,” said Mohamed Aria, who was one of the first Uber drivers in the Seattle market. “I helped Uber build their business, even referring my own customers. But after 6 years of high ratings and maximum customer satisfaction, I was deactivated without reason. It has been a year now since I lost the ability to work and support my family. The Uber staff at the local office have no answers. I applaud the Mayor for putting labor standards for drivers – including accountability and the right to appeal unfair deactivations – back on the city’s agenda.”

Mayor Durkan announced the proposal at a press conference at the Yesler Community Center on Thursday along with a plan to implement a fee on all TNC trips in the city. Revenue from the proposed fee would fund investments in driver support services, and community investments in affordable housing and transit improvements.

"We’re not going to stop organizing until we earn a living wage."

“All Uber and Lyft drivers in Seattle: we are here today, seeing progress, because drivers have been organizing and fighting back,” said Peter Kuel, a Lyft driver for over 5 years and steering committee member of the App-Based Drivers Association, which is affiliated with Teamsters 117. “As drivers, we bear all of the expenses of operation and all of the risks on the road, and we’re not going to stop organizing until we earn a living wage.”

According to the Federal Reserve, 58% of gig economy workers cannot afford a $400 emergency expense. This means that thousands of drivers in Seattle are one vehicle repair away from an economic crisis. Seattle’s more than 30,000 Uber and Lyft drivers – many of whom are immigrants and people of color for whom driving is their only source of income – lack minimum wage protections or paid sick leave and other worker benefits.

“Uber and Lyft drivers in Seattle provide important transportation services to our community and should earn a living wage,” said John Scearcy, Secretary-Treasurer of Teamsters 117. “Drivers are looking forward to participating in a wage study to provide real data to study leaders so that drivers are compensated for their expenses, can afford benefits, and are paid fairly.”

Today, Uber drivers leafleted outside of Uber’s Seattle office, and at more than a dozen other driver gathering spots, to generate calls to Seattle Mayor Jenny Durkan calling on her office to immediately introduce legislation to raise driver pay and establish labor protections.  

The leafleting actions come on the heels of Uber releasing a proposal to impose a $3.80 congestion toll on all Seattle commuters.  Drivers say the company’s $3.80 congestion toll plan is nothing more than an attempt to cause delay and avoid regulations that would raise driver pay and fund benefits.

"Instead of focusing on congestion tolls, Uber needs to do right by their drivers first..."

“Instead of focusing on congestion tolls, Uber needs to do right by their drivers first,” said Peter Kuel, an Uber and Lyft driver for more than 5 years and a leadership council member of the App-Based Drivers Association.  “Uber and Lyft should do today what every other business in Seattle already does – ensure drivers earn benefits like paid sick days and are never paid less than minimum wage after expenses.”

Uber and Lyft drivers speak out for fair pay and a voice before their caravan embarks for City Hall.

Ride hail drivers took their vehicles on a slow procession through Seattle neighborhoods today to call for better working conditions at Uber and Lyft. Drivers ended their caravan at Seattle City Hall where they delivered their demands to City officials for fair pay, a due process to appeal deactivations, and a voice.

SEE PHOTOS FROM DRIVER CARAVAN

“We are tired of seeing Uber and Lyft siphon off bigger and bigger percentages of what riders pay,” said Fasil Teka, an Uber driver of 7 years. “It’s time for the City to ensure that drivers have the same rights as all workers in Seattle.”  

"It’s time for the City to ensure that drivers have the same rights as all workers in Seattle."

Embarking from the Masjid al-Taqwa mosque in Seattle’s Central District, drivers honked their horns and displayed signs on their vehicles that read, “Share the fare!” and “Uber and Lyft: Listen to your drivers!” The caravan wove through the heart of the city, from the Central District to Capitol Hill and downtown Seattle, neighborhoods with some of the greatest concentrations of ride hail customers. 

“We are asking our customers to stand with us in our effort to win fair pay and a voice,” said Lyft driver, Mohamed Sharif. “When drivers are paid a living wage and can stand together to improve driver and passenger safety, our local economy and the entire community benefits.”

Uber and Lyft drivers will caravan together through Seattle neighborhoods to City Hall on Thursday to demand fair pay, a due process to appeal deactivations, and a voice. The Driver Caravan will embark from the Masjid al-Taqwa mosque in Seattle’s Central District on Thursday, May 30 at 11:15 a.m. and weave through Capitol Hill and downtown Seattle.

On the brink of Uber's Wall Street debut, drivers in Seattle joined protests across the country demanding that Uber & Lyft pay drivers a living wage.

Ride-hail companies Uber and Lyft are pocketing an increasing share from what passengers pay while drivers are earning less, according to a new report released today by the App-Based Drivers Association. 

The study – based on analysis of company financial reports, combined with never before released trip-level data collected by local drivers in Seattle – was released at a Driver Speak Out event attended by drivers at the Sea-Tac Airport waiting lot. 

SEE PHOTOS FROM THE DRIVER SPEAK OUT EVENT HERE

“As drivers, we make sure our customers get to their destination safely, and we bear all the costs of car, gas, maintenance, repairs – everything,” said Don Creery, who has been driving for Uber for 5 years. “But over the years Uber has been taking more and more from what passengers pay, and now they’re telling investors they plan to reduce driver pay even further to satisfy shareholders.  It’s just not right.”

The Speak Out event was one of more than a dozen driver-led actions in major metropolitan areas happening just ahead of Uber’s highly anticipated debut on Wall Street, which is expected to draw a valuation that could top $100 billion. But, while Uber’s IPO may be poised to mint a new generation of overnight tech millionaires, the data shows that drivers are being paid a declining share of what customers are charged. 

When Uber and Lyft first came to Seattle, drivers were paid 80 percent of what riders were charged. Today, on the median trip in Seattle, drivers received just 69 percent, according to the ABDA report. And the more riders pay, the less drivers receive. 

On a majority of trips analyzed, riders paid higher prices than advertised non-surge UberX rates. On these high-priced trips, drivers received just 62 percent of rider price – the company take was 38 percent. On some trips, driver pay fell to as little as 32 percent of what customers were charged. 

Uber and Lyft’s take rates are high relative to other online marketplace platforms. 

Paypal charges users 2.9% plus $0.30. Etsy charges merchants 5% plus a listing fee. Mercari charges sellers 10%. Ebay fees are between 2%-12% of sale price. AirBnB fees for hosts and guests combined range between 3%-23% of listing price.

“Consumers deserve price transparency to know that at least 80 percent of what they pay is shared with their driver, not kept by the company for overhead or profits,” said Peter Kuel of the App-Based Drivers Association, who has been an Uber and Lyft driver for 5 years. “Uber and Lyft should meet the same standards of every other business in town, ensuring that drivers can earn paid sick days and never receive less than a $15 minimum wage after expenses.”

See media coverage of the event:

• SEATTLE TIMES: As Uber and Lyft go public, Seattle drivers getting a smaller share of fares, union analysis says
• KING 5: Uber/Lyft drivers protest pay
• KNKX: Ride-share drivers rally at Sea-Tac over low pay before Uber IPO
• GEEKWIRE: Uber driver protests ahead of IPO spell uncertain future for gig economy
• KIRO 7: Local Uber, Lyft drivers protest low wages as others across country strike
• KOMO 4: Uber, Lyft drivers protest in Seattle, across the US
• KING 5: Seattle Uber, Lyft drivers to protest pay amid nationwide strike
• Q13: Uber, Lyft drivers go on strike to protest low pay, event planned at Sea-Tac Airport
• AL JAZEERA: Uber, Lyft drivers strike in cities worldwide ahead of Uber's IPO
• SEATTLE CHINESE TIMES: 隨著Uber和Lyft上市 司機的工資將會愈來愈少？

Seattle Uber and Lyft drivers will hold a Driver Speak Out! event and press conference on Wednesday to highlight increasingly high company take rates, low driver pay, issues around deactivation and other driver concerns as Uber prepares to go public later this week.

At the event, members of the App-Based Drivers Association will discuss a new report that exposes how Uber and Lyft are pocketing an increasingly greater share of rider payment in the Seattle market while drivers are earning less.

The study, Uber/Lyft take more, pay drivers less, is based on analysis of company financial reports, combined with never before released trip-level data collected by local drivers in Seattle. 

The Driver Speak Out! will take place at the Sea-Tac Airport Ride Hail Lot (3037 160^th St) on Wednesday, May 8, 2019 starting at 11 a.m.

The Seattle event will be held in conjunction with driver protests in other major metropolitan areas around the country in anticipation of Uber’s much-anticipated debut on Wall Street, which is expected to draw a valuation that could top $100 billion. Strikes and other actions are planned in San Francisco, Los Angeles, San Diego, Chicago, Boston and Washington, D.C.

Uber and Lyft drivers attending a Driver Summit event today sponsored by the App-Based Drivers Association got a first look at a Rideshare Wage Calculator developed in partnership with Teamsters 117. The new tool, which can be accessed at www.drivercalculator.org, deducts common expenses such as gas, vehicle maintenance, and insurance from a driver’s weekly gross earnings to calculate estimated hourly pay. Drivers can compare their pay to the Seattle minimum wage and other types of jobs.

"The Rideshare Wage Calculator gives you a realistic calculation of your pay."

“The Rideshare Wage Calculator gives you a realistic calculation of your pay,” said Hari Lama, who has driven for Uber and Lyft for two years. “It reflects my experience that our pay has been decreasing over time and that the commission rates these companies are taking are too high. We need to be compensated fairly so we can earn a living wage.”

The methodology used to develop the Calculator is based on the work of Larry Mishel, a distinguished fellow at the Economic Policy Institute, who analyzed driver pay in his report Uber and the Labor Market published earlier this year. "It is important that every 'rideshare driver' accurately assess their earnings and be able to compare them to other workers on an apples-to-apples basis. This wage calculator provides just that tool," Mishel said.

Drivers at the meeting brought their concerns over high commission rates, decreasing pay, deactivation, and a lack of protection for workers to Seattle City Councilmember Teresa Mosqueda, who committed to work with others on the Council to develop new policies to raise standards in the industry.

“We need to establish policies to ensure that drivers in the for-hire transportation industry enjoy the same rights and protections as other workers in our City – the right to free association, the right to stand together in a union, and protections by Seattle’s sick and safe leave and minimum wage laws,” Councilmember Mosqueda said.

In April, the City Council passed a resolution to study data in the for-hire industry and explore equitable compensation for drivers, improve customer service, and ensure equal market access to all stakeholders. “Uber income is going down and our expenses are going up,” said Abebe Ephrem, who has been driving for Uber and Lyft since they entered the Seattle market in 2012. “The drivers have lives, they have apartments, they have families. The City needs policies so that we can be treated with respect, like human beings.”

Uber is near the top of companies in Washington State whose workers rely on food stamps to feed their families. According to a recent study by JP Morgan/Chase, average monthly earnings among active for-hire drivers in the first quarter of 2018 were 53 percent lower than their peak in the first quarter of 2014.

“The public should not be subsidizing billion dollar companies in a race to the bottom in driver pay,” said John Scearcy, Secretary-Treasurer of Teamsters 117. “Seattle needs to follow New York's lead and pass legislation to guarantee that drivers can earn a living wage.”