Teamsters Chief Seeks to End His Union’s Uber Bill in Washington

(Bloomberg) -- The Teamsters' new international president is urging Washington's governor to veto a bill one of his local affiliates forged with Uber Technologies Inc. and Lyft Inc., a potential setback for the ride-hail companies' efforts to secure deals shielding their business models.

“This will be the model that sets the tone for the entire country,” said Sean O'Brien, who was sworn in as international president of the Teamsters union last week. “We've got to make sure we do it right.”

Uber and Lyft have sought for years to reach agreements with unions and lawmakers that would provide drivers with new perks while ensuring the companies can still classify them as independent contractors excluded from some traditional workplace protections. The Washington bill, which passed the state's House and Senate this month, would prevent ride-hail drivers from being deemed employees but would extend them new benefits such as paid sick leave and a minimum pay rate for the time they spend transporting passengers. It would also preempt cities from regulating the ride-hail companies themselves and would give drivers the option to fund a “driver resource center,” which could represent workers in contesting their terminations.

“Everybody wants to build their membership, everybody wants to represent workers, but this can't be a money-grabbing association,” said O'Brien, who argues the drivers should instead be classified as full-fledged employees of the companies.

The bill's sponsor, Democrat Liz Berry, has described it as the “culmination” of years of negotiations between Uber, Lyft and union representatives. Governor Jay Inslee, a Democrat, hasn't said whether he will sign the legislation, which was sent to his desk three weeks ago.

Spokespeople for Inslee, Uber and Lyft didn't immediately comment in response to inquiries. In an emailed statement, the Seattle-based Teamsters Local 117 said the bill will guarantee Uber and Lyft drivers the highest statewide labor standards anywhere in the U.S. “Uber and Lyft drivers — like all workers — deserve a labor movement that will respect their right to self-determination to set their own priorities,” the local union's secretary-treasurer, John Scearcy, said.

O'Brien's predecessor, James Hoffa, had not taken a public position on the Washington bill, which was backed by Local 117 but opposed by the Teamsters' regional joint council covering the state. O'Brien campaigned by offering a break from the Hoffa years, and on Thursday, he said that since he took office, the international union informed Inslee that it opposes the bill hammered out with Uber and Lyft.

“We are open to having relationships with anyone,” O'Brien said, “but we've got to make sure they're going to be beneficial to the workers and not be some type of charade to skirt their obligations under the employee relationship.”