Massachusetts: Rideshare drivers' union issue put to vote

BOSTON — Efforts to unionize rideshare drivers continued Tuesday as organizers submitted the final signatures needed to get the petition on the November ballot. Their initiative calls on the state's voters to approve a drivers' union and secure a seat at the bargaining table for better working conditions, wages and benefits.

The 12,429 signatures were delivered by the Drivers Demand Justice Coalition to Minister William Galvin just one day before the July 3 deadline. If voters approve the petition, drivers will be able to form a union with collective bargaining rights.

Wilson Perez, a driver from Worcester, doesn't make enough money driving for the company to pay his monthly bills. He works as a rideshare driver because he has to support his wife and children.

Edward Calderon also works as a rideshare driver in Worcester. He likes the job, which allows him to set his own schedule and have more flexibility in his work life. However, in the time he has driven for the companies, he has found that they take advantage of their drivers.

To secure well-paid rides, drivers invest in expensive vehicles, and companies are taking more and more of each fare, more than 50%, Calderon said. This leaves drivers unable to pay their installments. And like Perez and Calderon, they don't make it to the end of the month.

Roxana Rivera, assistant to the president of 32BJ SEIU, one of the unions supporting rideshare drivers, said the coalition will continue to advocate for this right despite recent developments surrounding the employment status and compensation of app-based workers.

“Union protections, a right for millions of workers in Massachusetts, are being denied to Uber and Lyft drivers,” Rivera said. By putting the question before Massachusetts voters, millions of whom support unions for all workers, the coalition is confident the ballot question will pass.

“No driver should work 70 hours and then have to decide which bills to pay,” said Michael Vartabedian of District 15 of the International Association of Machinists. “Drivers deserve respect, a living wage, not disrespect and starvation wages.”

Organizers are continuing their efforts despite recent developments in Massachusetts regarding the status of rideshare drivers.

On June 27, the state Supreme Court allowed six questions about the ride-sharing industry to be placed on the November ballot. That same day, Attorney General Andrea Campbell settled a four-year-old lawsuit brought by her predecessor against Uber/Lyft.

The settlement between Campbell and the technology companies that control the apps that manage ride-hailing drivers prompted the companies to drop their five ballot questions that offered different benefits to drivers and asked Massachusetts voters to decide whether the drivers are employees or independent contractors.

The sixth voting question approves the formation of a union.

Governor Maura Healey sued the tech companies in 2020 in her capacity as state attorney general, claiming they falsely classified the drivers as independent contractors. In her lawsuit, Healey claimed they were employees under state law. That classification denied the drivers the basic rights that all workers in Massachusetts enjoy: a minimum wage, currently at $15 an hour, the right to paid sick leave, health insurance, family leave, workers' compensation and unemployment benefits.

The classification also cost the state millions. Employers pay into state unemployment and workers' compensation insurance. A report released in April by state Comptroller Diana DiZoglio estimated that the state lost more than $20 million in unemployment payments and another $17 million in workers' compensation for 2023.

The New Jersey Department of Labor settled a similar lawsuit against Uber in 2022. The company paid the state $100 million. New Jersey is currently pursuing a lawsuit against Lyft, claiming the company misclassified its drivers and owes the state $17 million in unemployment benefits, temporary disability and family leave contributions.

In Massachusetts, the agreement between the attorney general and Uber and Lyft does not address the issue of worker classification. However, the two giants of the app-based economy have admitted to paying $175 million to Massachusetts, $148 million of which will go to Uber. Those funds will be pooled and paid out as compensation to drivers and former drivers because they were underpaid, the attorney general said.

“For years, these companies have underpaid their drivers and denied them basic benefits. (Today's) agreement holds Uber and Lyft accountable and provides their drivers with a guaranteed minimum wage, paid sick leave, workers' compensation insurance and health benefits for the first time ever in Massachusetts,” Campbell said in a prepared statement. “I want to thank my team, whose hard work has ensured a measure of dignity for every driver across the state, as well as our union allies and the drivers themselves for their tireless work and dedication.”

The two companies have also agreed to implement a minimum wage of $32.50 per hour while drivers are actively employed, from the time they pick up a passenger until they drop them off at their destination. While drivers are waiting for passengers, there is no guaranteed income.

Among other things, the agreement states that drivers are entitled to one hour of paid sick leave for every 30 hours worked, up to 40 hours a year. Drivers receive a stipend to buy into the state's paid family and medical leave law, and even health and worker's compensation insurance.

“A union is the only way to fight back against Lyft and Uber's future mistreatment of drivers. It will give them a say in their jobs and a seat at the bargaining table for better working conditions, benefits and wages,” Rivera said, calling the proposed ballot question the drivers' declaration of independence.

The agreement of the Attorney General's Office serves as a basis on which to build; a union will ensure that the drivers are not exploited again.

“Our agreement with Uber and Lyft secured an unprecedented package of minimum wage, benefits and protections for workers,” Campbell said. “This is a solid foundation that can and should be built upon. I am proud to support this ballot question, which, if passed, would give workers the opportunity to collectively bargain for even higher wages and benefits.”

Other benefits of the agreement include pay transparency, which allows drivers to receive detailed rate information for accepted trips. Companies are also prohibited from discriminating against or retaliating against drivers.

The companies offer in-app chat support in four languages – English, Spanish, Portuguese and French – and provide reasons for the deactivation and an appeals process to challenge the deactivation.

The Attorney General's Office will monitor the companies to ensure compliance with the agreement.

State lawmakers have introduced bills that would provide drivers with a legal path to unionization. Time is running out to pass the bills as the legislative session ends on July 31.

Lawmakers also convened a joint special committee to review all ballot initiatives proposed for November, which totaled 10 in the spring. Despite testimony and sometimes bitter arguments between lawmakers and supporters of the questions, lawmakers failed to make changes. They could either pass legislation replacing the ballot questions with similar proposals or do nothing at all.

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Anna Harden

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