Massachusetts Ride-Share Unionization Ballot

By Nate Raymond (NS:RYMD)

BOSTON (Reuters) – On Tuesday, Massachusetts voters approved a ballot measure allowing ride-share drivers to unionize, making it the first U.S. state to enable unionization for app-based drivers like Uber and Lyft.

With 94% of precincts reporting, 53.9% of voters supported a framework that lets ride-share drivers, classified as independent contractors by companies, organize and bargain collectively regarding pay and benefits. This was reported by the Associated Press, which called the vote on Wednesday.

Supporters of the measure believe it can serve as a model for other states to allow Uber and Lyft drivers to unionize, potentially inspiring nationwide organizing efforts.

This vote follows years of debate in the U.S. on whether ride-share drivers should be classified as independent contractors or employees entitled to benefits and protections. Studies suggest using contractors can be up to 30% cheaper for companies.

Currently, approximately 70,000 drivers in Massachusetts for Uber and Lyft lack the right to organize under the National Labor Relations Act, a federal law that protects actual employees.

The Massachusetts measure, known as Question 3, enables drivers to form a union after collecting signatures from at least 25% of active drivers in the state. Companies would also be able to form associations for collective negotiations during state-supervised discussions.

The measure received support from the Service Employees International Union and the International Association of Machinists, gaining endorsements from prominent figures like Andrea Campbell, the state’s Democratic attorney general.

In June, Campbell reached a settlement with Uber and Lyft, establishing a $32.50 hourly minimum pay standard for Massachusetts drivers and requiring the companies to pay $175 million to settle claims of misclassifying drivers as independent contractors rather than employees.

As part of this settlement, Uber and Lyft withdrew their support for a previously proposed measure that would have legally affirmed drivers' contractor status, though the agreement did not classify drivers as employees.

Uber and Lyft chose not to campaign against Question 3 but expressed concerns regarding specific language in the measure that they hoped would be rectified by the state legislature.

Question 3 was introduced before the industry abandoned its separate proposal, and its advocates contend it is the best path for drivers to achieve improved working conditions after the settlement.

Nevertheless, the question stirred division within the local labor movement, with some activists arguing it did not go far enough and others questioning its potential conflict with federal law and possible legal challenges.