Massachusetts rideshare drivers become first in U.S. to unionize
Rideshare drivers in Massachusetts have officially made history by becoming the first in the U.S. to unionize.
If you take a drive through the rideshare waiting lot outside Logan Airport, you will hear similar stories. There are tales of frustration with Uber and Lyft and how the companies collect fares, leaving a fraction for drivers.
"Uber has been taking advantage of all the drivers. The gas prices have been going way up," Uber driver Steve Kalmanides said.
"Sometimes Uber and Lyft, they're charging 60%, sometimes 65%, sometimes 50%," another driver, Elchin Abdulov, told WBZ.
Now, the Massachusetts Department of Labor Relations says the Commonwealth's roughly 70,000 rideshare drivers can band together, certifying the App Drivers Union last week, 18 months after voters approved a measure on the issue.
Organizers behind the union push, backed by 32BJ SEIU and the International Association of Machinists and Aerospace Workers, say the next hurdle is actually crafting a contract.
"We'll be reaching out to companies and asking them for dates to negotiate. And then, we'll also be surveying our members at the same time," said Mike Vartabedian, the Principal Officer of the App Drivers Union.
Governor Maura Healey has signaled she is fully on board.
"That means better pay, better wages for them, for their families," Healey told reporters on Monday.
MIT economist Christopher Knittel says if rideshare wages increase, that money has to come from somewhere.
"It can come from higher fares, smaller driver incentives, or lower platform profit margins," Knittel said.
Uber released a statement saying in part, "We will ensure that driver flexibility and hard-won benefits remain the foundation of our progress."
Lyft released a statement saying in part, "Lyft does well when drivers do well."