The Illinois legislature passed the Transportation Network Driver Labor Relations Act. This bill grants approximately 100,000 Lyft and Uber drivers the right to unionize and bargain collectively.
The legislation now awaits the governor's signature. Once signed, drivers can negotiate pay, working conditions, and deactivation appeals.
The law challenges Lyft’s business model of using independent contractors to control costs. Unionization could significantly increase company expenses in this key market.
Drivers advocated for the change to address declining wages and lack of representation. The act also imposes a 4-cent-per-ride fee to fund implementation and driver support programs.