Thomas Kochan: "Vote yes to let workers in the rideshare sector unionize"

ACROSS THE COUNTRY workers in industries ranging from coffee shops to museums, universities, communications media, and others are organizing new unions to improve their wages and working conditions.  Our research shows these workers are also seeking to gain respect and a voice in all the issues that shape the quality of their job and the services they provide.  However, a critical set of workers, those who provide ride services for Uber, Lyft, and their customers, are currently prohibited from unionizing.  They are not covered under our national labor law.

Massachusetts voters have a chance to break through this legal barrier by voting yes on ballot question 3 this November. If passed, Massachusetts would become the first state to provide ride service workers the ability to decide whether or not to join a union.  In doing so, Massachusetts could be a model for other states to learn from and perhaps follow.

As someone who studies and works with companies and unions to build fair and productive collective bargaining relationships, I support this ballot initiative because I believe all workers should have the right to join a union if they want to do so. 

Moreover, the innovative approach to bargaining provided in this ballot initiative is tailor-made to fit this industry and occupation.  Bargaining would be done on a sector-wide basis -- that is, Uber, Lyft, and other ride service companies would bargain together with drivers.  This has a number of advantages for drivers, companies, and customers.

This sector-wide approach works well for drivers because many of them have apps that allow them to drive for more than one company.  Bargaining jointly with these companies would provide a channel for addressing their key concerns about low wages, high out-of-pocket operating costs, and sudden deactivations that make their livelihoods difficult and unpredictable regardless of which company’s app they are using. Even more, drivers can have a say in the technology and algorithms that govern their work and for too long have been shrouded in mystery.

This level of input from drivers will undoubtedly benefit customers. Drivers are the ones behind the wheel and on the apps every day, and they are in the best position to propose changes that help them to better serve their customers.  A large body of evidence from other service industries shows that worker satisfaction and customer satisfaction go hand in hand. Drivers who feel heard, respected, and well-paid will provide better customer service.

Ride service companies can also benefit if they develop positive relationships with their workers and unions. There is equally strong evidence that unions improve employee retention, which should help ride service companies keep the most experienced drivers on the road. The economics of this industry are such that both companies and drivers benefit from high “utilization rates”, meaning the more time spent driving and staying on the job helps cover the fixed costs involved in getting started. So retention has mutual benefits.

A sector-wide approach puts all current and future rideshare companies in Massachusetts on equal footing by taking wages (and benefits, hours, etc.) out of competition. One company does not have to worry that it will be at a competitive disadvantage if it gets organized and a competitor does not.  Should other players enter the industry, they too would be covered by these negotiated standards.

Sector-wide bargaining also addresses the limits of another important and unpredictable variable: politics.

Earlier this year, the Massachusetts attorney general reached a settlement with Uber and Lyft that raised the minimum wage for the rideshare industry. It was a first step toward a more sustainable industry, but the settlement is a floor, not a ceiling.

With a union, rideshare drivers and companies can build upon the standards laid out in the settlement agreement. Drivers and companies would be able to negotiate directly, without having to wait for slow and uncertain political processes to adapt as the economy changes over time or new issues arise. Direct negotiations and on-going dialogue are faster and more responsive to day-to-day conditions than processes that involve regulators or lawmakers.

By voting yes on Question 3, Massachusetts can be an innovator and provide a model for a much-needed path towards a better rideshare industry.

Thomas A. Kochan is the George M. Bunker professor emeritus at the MIT Sloan School of Management and the Institute for Work and Employment Research. He is the author of Shaping the Future of Work: A Handbook for Change and a New Social Contract.

This article first appeared on CommonWealth Beacon on October 2, 2024 and is republished here under a Creative Commons license.