Zum Continues Good-Faith Negotiations With Teamsters Local 174, Focused on Reaching Agreement That Supports Seattle Drivers

Zum remains focused on bargaining in good faith and avoiding disruption to students and families

Seattle, Washington, September 23, 2026 — ​​Zūm, a leader in modern student mobility, today provided additional context on its ongoing negotiations with Teamsters Local 174 to ensure its employees and the public have accurate information about where negotiations stand.

Zum and Teamsters Local 174 have made significant progress, including tentative agreements on pay increases. Zum does and is prepared to continue to make statutorily required investments in our drivers’ retirement benefits.

Zum’s July 20, 2026 proposal provides retirement contributions at the current statutory contribution level for the 2026–27 school year through a union-controlled savings plan, where employees vest immediately in those contributions. Local 174 is now seeking to move those contributions to a multi-employer pension plan that can require up to five years for employees to fully vest. The parties will return to the bargaining table on Thursday, October 1, and Zum remains optimistic that an agreement can be reached.

“We want our Seattle drivers to have the strongest retirement benefit possible, with greater ownership, flexibility and choice,” said Vivek Garg, Co-Founder and COO of Zum. “Our proposal provides a fully funded benefit tied to the individual employee, giving drivers greater control over their retirement savings. We believe our drivers should have a retirement benefit that works for them today and in the future, and that has been our focus throughout these negotiations.”

Key Facts on the Negotiations

• Wages: The parties have reached tentative agreement on pay increases.
• Retirement contributions: Zum’s offer provides contributions at the current statutory contribution level for the 2026–27 school year.
• Retirement structure: The remaining issue is where those contributions are directed. Zum currently provides retirement benefits through a union controlled savings plan, where employees vest immediately in those contributions to a union controlled pension plan where employees have to wait up to five years to access those funds.
• Compliance with Washington law: Zum meets Washington requirements for employee health coverage, including the minimum employer contribution of $1,307 per month per employee. 
• Greater ownership and flexibility for drivers: Our current retirement structure gives employees greater control over their retirement savings, with benefits tied to the individual employee and designed to provide greater flexibility, choice and control than a multi-employer pension plan that creates open-ended, shared liabilities.
• Negotiations continue: Zum continues to consider the union’s proposal in good faith and will return to the bargaining table on Thursday, October 1, 2026.

“We deeply value our Seattle drivers and want them to have strong wages, health coverage and retirement benefits,” Garg said. “We have made significant progress with the union, and I remain optimistic that we can resolve the remaining issue when we return to the bargaining table next Thursday. We know how essential safe, reliable transportation is for Seattle students and families, and our focus is reaching an agreement and avoiding any disruption to service.”

Zūm transportation is currently operating as scheduled. We will continue coordinating closely with Seattle Public Schools and communicating directly with families regarding any changes to service. Transportation service updates will also be posted daily on our blog with the latest information for families.

Media Contact

Jenny Mayfield
VP, Communications, Zum
[email protected]

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