Historic Deal Secures 'Life-Changing' Pay for Gig Workers
In a landmark move for Australia's gig economy, the nation's two largest food delivery platforms, Uber Eats and DoorDash, have endorsed a sweeping reform plan that promises to dramatically improve pay and conditions for tens of thousands of workers. After years of campaigning, the companies have reached a pivotal agreement with the Transport Workers Union (TWU) to establish minimum standards for riders and drivers who have long operated without guaranteed hourly earnings.
What the New Safety Net Includes
The proposed standards, filed with the Fair Work Commission, outline a safety net pay rate of approximately $32 per hour. This new model, which would be averaged over a 21-day period, is set to replace the current per-delivery payment structure that the union argued often left workers earning significantly below the national minimum wage. The draft orders also specify that this rate will cover vehicle maintenance costs, though they notably exclude penalty rates and overtime.
Beyond the crucial pay increase, the deal introduces a suite of new protections and rights. Delivery workers would gain access to dispute-resolution processes, accident insurance, and the right to union representation. Furthermore, platforms would be mandated to provide detailed information for each delivery request, including the distance and estimated time, allowing workers to make more informed decisions.
A 'Really Emotional Moment' for Drivers
The significance of the agreement was palpable during a doorstop interview at Parliament House in Canberra. Employment Minister Amanda Rishworth welcomed the deal, standing alongside TWU national secretary Michael Kaine, ACTU secretary Sally McManus, and several delivery drivers. Minister Rishworth praised the outcome as a model of cooperative workplace negotiation.
The human impact of these reforms was powerfully articulated by the drivers present. Canberra delivery driver Utsav Bhattarai described the deal as a 'really emotional moment', reflecting on the relentless pressures of the job. 'You're sick, you've got to go to work. There's a hail storm, there's rain, you've got to go to work. You can't stop,' he told reporters, detailing a cycle of working exhaustive hours just to make ends meet.
TWU national secretary Michael Kaine hailed the minimum pay proposal as a 'life-changing' development for a workforce that has long sought basic employment protections. The deal marks a major victory for the union, given the food delivery giants had previously resisted the imposition of minimum conditions, warning that such laws could increase consumer prices.
Representatives from both Uber Eats and DoorDash expressed their support. Ed Kitchen, Managing Director of Uber Eats Australia, stated the agreement was the result of years of collaboration and affirmed that fair standards and flexibility are not mutually exclusive. Similarly, Simon Rossi, DoorDash's Vice-President for Asia-Pacific, said the proposal demonstrates that the industry can work together to lift standards while preserving the flexibility workers value.
This reform arrives amidst a shifting market landscape, with competitors like Menulog, Foodora, and Deliveroo having exited Australia due to tough trading conditions. The successful agreement, forged from years of worker advocacy, is now seen as a potential template for future standards across the broader ride-share and courier platform sectors.
