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Fast Facts About Massachusetts Rideshare Sectoral Bargaining
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Fast Facts About Massachusetts Rideshare Sectoral Bargaining

A new state model leads to the biggest new private sector union bargaining unit in the past 85 years.

Rideshare vehicles wait in line to pick up passengers.
Rideshare vehicles wait in line to pick up passengers at the airport on February 8, 2023, in Los Angeles. (Getty/Mario Tama)

On May 25, 2026, the App Drivers Union announced they were certified by the Massachusetts Department of Labor Relations as the official bargaining representative for approximately 70,000 drivers in the state. This enables drivers to start collective bargaining with Uber and Lyft for a contract covering all drivers in the industry through a groundbreaking sectoral bargaining process enacted by state voters in 2024.

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Here are key facts about rideshare collective bargaining in Massachusetts.

Largest new private sector bargaining unit since 1941

The approximately 70,000-person bargaining unit of the App Drivers Union could be the largest new private sector bargaining unit since 1941, when more than 80,000 Ford workers at the River Rouge plant unionized and selected the UAW as their bargaining representative. Even compared to public sector union victories, the App Drivers Union stands out as the largest single unit since 1999, when 74,000 home care workers in Los Angeles County joined the Service Employees International Union.

New model of organizing and bargaining

The law enacted by Massachusetts in 2024 enables workers to form a union and bargain collectively through an easier process than that which exists under the National Labor Relations Act (NLRA), the federal law that controls most private sector unionization efforts. Drivers were able to gain access to the contact information of their fellow workers by demonstrating support from 5 percent of co-workers—a much lower threshold than the NLRA standard of more than 30 percent. Drivers can now start the bargaining process because they demonstrated the support of at least 25 percent of drivers, a lower threshold than the 50 percent threshold required by the NLRA. The law also provides for sectoral bargaining, a type of collective bargaining that sets standards across an entire industry rather than just at a single worksite, as the NLRA encourages.

Notably, states have the legal authority to enact this model unless the Trump administration and the U.S. Supreme Court change course and maintain that drivers are considered employees under the NLRA, rather than independent contractors.

Sectoral bargaining critical for rideshare

Sectoral bargaining is well-suited for rideshare—a difficult-to-organize, “fissured” industry with a dispersed workforce—because it covers all drivers in the sector, from full to part time, no matter how firms try to structure their work. According to an academic study, workers in occupations that are “inherently hard to organize … are more likely to be organized in unions” under sectoral bargaining systems. Sectoral bargaining also raises wages, benefits, and other standards for far more workers than the single worksite default of the NLRA—and does so in a way that enables companies to compete on a level playing field.

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Successful sectoral bargaining parallels

Rideshare companies have developed an industry in which it is notoriously difficult to create good jobs. Yet sectoral bargaining models have worked in other highly challenging industries in American history, such as garment manufacturing. In 1933, 60,000 garment workers in four states staged a strike to secure a contract providing minimum workplace standards for the entire apparel industry. The sectoral agreement helped transform an industry notorious for “sweatshop” conditions—and firms avoiding responsibilities for fixing them—into one with decent jobs.

Drivers bargaining for better working conditions in the face of AI

Drivers plan to bargain with rideshare companies to address their concerns and make their jobs better. Drivers currently struggle with low pay per mile, inadequate benefits, occupational injuries, and potential violence from passengers. They also face algorithmic compensation-setting and surveillance as well as the threat of arbitrary deactivation—and major hurdles to getting reactivated. Furthermore, the rideshare industry could be among the first hit by major job losses due to artificial intelligence (AI) and related technologies as autonomous vehicles become increasingly common.

Massachusetts drivers could secure a contract in 2026

Drivers could potentially secure a contract in 2026. The rideshare bargaining law provides for mediation and arbitration, which can prevent the endless employer delays common under the NLRA. Mediation and arbitration processes begin if drivers and companies do not reach an agreement within 180 days of the App Drivers Union’s certification as the exclusive bargaining representative. Contract ratification also requires support from a majority of drivers and a review by the Massachusetts secretary of labor.

California rideshare could start bargaining and secure a contract soon

California enacted a similar rideshare bargaining law in October 2025, and drivers are actively organizing to become certified for bargaining. Though the California law was enacted one year after the law in Massachusetts and rideshare drivers in the state have yet to begin bargaining, they could potentially secure a first contract before drivers in Massachusetts. Prior stages of implementation in California have moved more quickly, with California collecting necessary data from rideshare companies several months faster than Massachusetts did.

If drivers in both California and Massachusetts successfully achieve a collective bargaining agreement, an estimated 900,000 new workers would be covered.

If drivers in both California and Massachusetts successfully achieve a collective bargaining agreement, an estimated 900,000 new workers would be covered. This increase would effectively undo the past 20 years of slow decline in private sector bargaining coverage across the country—though it still wouldn’t come close to making up for larger declines over the past half-century.

A growing policy model

Rideshare sectoral bargaining legislation is moving forward in Illinois and Minnesota and could spread to additional states. Ultimately, this model of organizing and bargaining could be adopted for other industries—especially those where improving working conditions is particularly challenging or new technologies threaten to degrade job quality.

The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. American Progress would like to acknowledge the many generous supporters who make our work possible.

Author

David Madland

Senior Fellow; Senior Adviser, American Worker Project

Team

American Worker Project

The American Worker Project conducts research and advances policies to build power for working people; strengthen their right to unionize; and ensure that work pays and supports a dignified life.

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