Uber and DoorDash delivery drivers and riders are set to be paid a minimum $31.30 a hour thanks to a landmark decision by Australia’s workplace tribunal.
The Fair Work Commission orders, issued in a notice of intent on Wednesday ahead of a final decision, mean tens of thousands of gig economy workers will get a pay rise of about 25% from August 10.
Food delivery workers currently make an estimated average $24 an hour based on a percentage of each meal they deliver, but will now get “safety net” hourly rates determined by vehicle type, ranging from $31.30 to $32 a hour and increasing by 50 cents an hour next year.
A full bench of the Commission also ordered the delivery drivers and riders be provided with pay transparency, union representation rights and personal accident insurance coverage.
“All other things being equal, the implementation of these rates would provide a significant increase in income for low-paid ELWs (employee like workers), including for ELWs who are dependent upon on-demand delivery work for their livelihoods,” the Commission said.
Uber, DoorDash and the Transport Workers Union (TWU), which made a joint submission on the proposed minimum standards order last year, welcomed the decision, with TWU national secretary Michael Kaine calling it “historic”.
“Australians have come to rely on having food delivered to our doorstep from the magical click of a button, rain, hail or shine,” Mr Kaine said.
“But for too long, gig workers have languished outside our workplace protections with below minimum pay, no voice at work and no protections, under deadly pressure to rush to make ends meet and avoid deactivation. Since 2017, 25 gig workers have been killed on our roads.”
Uber Eats Australia and New Zealand managing director Ed Kitchen said the decision was “an important step towards minimum standards for tens of thousands of Australian platform workers”.
“This would be the first time under the Albanese Government’s new workplace laws that drivers would access minimum standards that provide a safety net and stronger protections while maintaining the unique flexibility that platform work provides,” DoorDash Asia Pacific vice president Simon Rossi said.
The Commission noted the new rates would be affordable for the online platforms, and did not properly take into account workers’ costs or award wages for employees who perform comparable work.
“The minimum standards which have been agreed between the TWU, Uber and DoorDash, including the standards dealing with minimum rates of pay, have been tailored to meet the circumstances of the on-demand delivery sector, including its capacity to commercially sustain the payment of higher minimum rates of pay to ELWs,” it said.
Header image credit: Uber Eats.
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