A historic deal could transform Australia’s gig economy, with the country’s two largest on-demand delivery platforms agreeing to minimum pay rates and providing wide-ranging improvements and protections for riders and drivers.<\/p>\n
The agreement struck between the Transport Workers Union (TWU) and Uber Eats and DoorDash followed years of campaigning by workers and the union.<\/p>\n
Minimum safety net pay rates would put a floor beneath what have been wildly variable earnings for delivery workers, who have often taken home far less than Australia’s minimum wage under current pay arrangements, which see them paid per delivery, not for time worked.<\/p>\n
The development represents a substantial win for the TWU, which has argued the lack of minimum conditions has pushed down working standards for employees in industries beyond those it covers.<\/p>\n
Uber Eats and DoorDash have previously railed against the imposition of minimum conditions and warned it would massively increase costs for consumers.<\/p>\n
“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,” Michael Kaine, national secretary of the TWU, said in a joint media statement from the three parties.<\/p>\n
“After constructive discussions with Uber Eats and DoorDash, this is a significant step towards a fairer gig economy.”<\/p>\n
The deal worked out between the union and the dominant players will now be jointly submitted to the industrial umpire, the Fair Work Commission.<\/p>\n
Some of the benefits include:<\/p>\n
Dispute resolution processesAccident insurance paid for by the platformsThe right to be represented by a union<\/p>\n
The companies welcomed the deal.<\/p>\n
“Delivery workers keep Australia moving, helping busy households and supporting small businesses,” said Simon Rossi, vice-president of DoorDash in the Asia Pacific.<\/p>\n
“This proposal shows we can work together to lift standards and still enable the flexibility people rely on, under the government’s new laws.”<\/p>\n
The federal government has made significant changes to workplaces in recent years<\/a>, including the “right to disconnect” and a positive duty to prevent sexual harassment, meaning businesses have to actively prevent, not passively react, to the issue.<\/p>\n