Seattle City has become the first in the nation to pass a bill allowing Uber, Lyft and other ride-hailing services to form unions over pay and working conditions.

The Seattle City Council's unanimous passing of the bill recognizes the right of drivers for on demand ride companies to collectively talk over the working and pay conditions. According to the Reuters, the Seattle bill is one among the various legal battles which are being fought by the ride service across the United States.

The bill extends the driver's rights usually reserved for employees and does not address the driver's employment status. Mike O'Brien, the councilman who proposed the law told Reuters that he expects Uber to sue the city and stop the measure. In another statement to the New York times, he said that, "It's clear the nature of work has shifted in part because of technology and in part because there are corporations that don't like labor protections."

According to The New York Times, a spokeswoman from Lyft said that the bill passes would threaten the privacy of drivers, impose more costs on passengers and the city and conflict with the federal law. The statement read that, "We urge the mayor and full council to reconsider this legislation and listen to the voices of their constituents who choose to drive with Lyft." "This is because of the flexible economic opportunity it offers," the statement added.

 CNBC reported that, San-Francisco based Uber and other ride-hailing services say that federal labor law prevents cities from regulating collective bargaining for independent contractors. Also, the ordinance would violate several antitrust laws.

Uber has been operating in more than 300 cities and 67 countries and has raised $7.4 billion from the investors. It is expected that, under the proposed bill, the city will give a list of eligible drivers at each company to the certified non-profit organizations. Later, the organizations would bargain on behalf of those drivers.