It appears that a controversial deal between Airbnb and the SEIU that would have marked the first-ever formal collaboration between a major firm in the “gig economy” and a labor union has fallen apart. Airbnb was poised to encourage vendors who provide services to homeowners on the Airbnb platform to pay their staff at least $15 per hour. However, SEIU backed down after taking heat from rival union Unite HERE. Most labor and housing activists are troubled by the impact on housing in markets where Airbnb operates. In an interesting plot twist, Andy Stern, former president of the SEIU, was negotiating the deal with SEIU on behalf of Airbnb.