A landmark deal is now in front of the Fair Work Commission to secure better pay standards for gig workers
The Transport Workers Union (TWU) has reached an agreement with Uber and Doordash to provide minimum wage for food delivery drivers, subject to approval from the Fair Work Commission.
Uber Eats previously reported it pays its workers $26 an hour. However, surveys from the TWU claim it is around $18 an hour, and even as low as $12 an hour, far less than the national minimum wage of $24.95 an hour.
As part of the Closing Loopholes legislation, the Minimum Standards Order (MSO) will grant gig workers better protections, no longer relying on tips to support themselves, including:
- minimum safety net pay rates for all classes of transport types
- dispute resolution processes
- a voice for platform workers, via engagement and feedback mechanisms
- representation rights
- accident insurance for injured workers
“Gig workers have campaigned for years for a better industry and for the first time in the world, there could soon be a minimum floor that represents a life-changing increase to their pay,” said TWU national secretary, Michael Kaine.
“After constructive discussions with Uber Eats and DoorDash, this is a significant step towards a fairer gig economy.”
Representatives from Doordash and Uber Eats said the reforms were “sensible and modern” and are vital to protecting vulnerable workers who can often fall through the cracks.
While certainly a win for workers, there are fears that the change in standard could push the price of these services up.
Uber Eats currently charges 30% commission on orders. The increased costs could be passed onto the customer or restaurants to avoid a loss.
However, Kaine believes Aussies would be happy to pay more to better support the workers.
"If you ask the average Australia, 'Would you be ok with paying a few cents more for your delivery knowing that the worker who's knocking at your door has proper pay, is looked after if they're injured', I think Australians would be ok with that," he said.
This latest news comes as fellow food delivery service, Menulog, ceases operations in Australia. Orders through the service will end on 26 November and around 10,000 Aussies will lose their job.
Following the companies closure announcement, the TWU called upon the other delivery companies, DoorDash, Uber Eats, Hungry Panda, and Easi, to “urgently get behind standards in the gig economy”.
“This will be a shock to the thousands of food delivery riders who rely on Menulog for income. We will be working to ensure those workers receive pay for their work and fair exit payments over the coming weeks,” said Kaine.
“In the gig economy, workers are still languishing with below-minimum wage rates, no sick leave or superannuation, and deadly pressure to rush to make a living and avoid being deactivated.”
Kaine noted that “inaction” from the Coalition Government on gig worker protections sealed the fate for Menulog.
“We urgently need standards in the gig economy to stop the relentless downward spiral. New laws introduced by the Albanese government will significantly level the playing field."
