In a landmark move for the gig economy, Australia's two largest food delivery platforms, DoorDash and Uber Eats, have joined forces with the Transport Workers' Union (TWU) to submit a joint application to the Fair Work Commission. This unprecedented deal seeks to establish legally enforceable minimum standards for the nation's delivery drivers, including an hourly wage and accident insurance.
The Core of the Landmark Deal
The agreement, described by experts as a 'world first', comes after years of negotiations and follows workplace reforms introduced by the Albanese government. These reforms empowered the industrial umpire to set minimum standards for gig workers, a sector long criticised for its lack of worker protections.
The proposed standards include a minimum 'safety net' rate of pay of $31.30 per hour, scheduled to come into effect from 1 July 2026, with a slight increase from 1 January 2027. This rate will apply across all modes of transport used for deliveries, with minor variations depending on the vehicle type.
Beyond pay, the deal introduces new dispute resolution processes, engagement mechanisms, representation rights, and crucially, personal accident insurance that will be organised and paid for by the platforms.
What It Means for Drivers and Consumers
For drivers like Eric Ireland in Melbourne, who estimates his current earnings at around $22 per hour before expenses, the change is significant. 'The peace of mind that you are actually getting paid while you're on the job… can only be a good thing,' he says, highlighting that drivers will now be compensated for time spent waiting for orders.
However, workplace relations expert Professor Alex Veen from the University of Sydney notes an important distinction. The safety net is not a traditional minimum wage; it does not include penalty rates for unsociable hours, and the hourly rate does not apply to time spent waiting between active delivery jobs.
On the question of cost, experts suggest that platforms are likely to pass increased operating costs on to consumers, potentially leading to slightly higher delivery fees. Dr Michael Rawling from the University of Technology Sydney believes that Australian consumers, knowing workers are being treated more fairly, will likely accept a small price increase.
The Road Ahead and Broader Implications
While the deal has been agreed upon by the major players, it is not yet a done deal. The Fair Work Commission must still approve the application and consult with other stakeholders, including rival delivery platforms.
Professor Andrew Stewart from the Queensland University of Technology points out a potential hurdle: the FWC must determine if the workers are truly 'employee-like' or if they are, in fact, employees. A ruling for the latter would be a landmark decision with far-reaching consequences, potentially leading to a High Court challenge.
This agreement sets a powerful precedent, not just for food delivery but for the entire gig economy in Australia. The TWU has already flagged its intention to submit a similar application for ride-share drivers, suggesting that this could be the first step in a broader transformation of worker rights in the digital age.
