UberEats and DoorDash to avoid increasing prices as minimum wage locked in for delivery workers
Delivery riders are now being paid a minimum wage and provided insurance in a major change to the gig economy.
The changes came into effect on Monday, August 17, days after the Fair Work Commission approved a deal between the Transport Workers Union (TWU) and major delivery platforms .
WATCH THE VIDEO ABOVE: Gig economy workers secure minimum wage protections
The deal gives riders the hourly rate of $31.30 up until 2027, when it will be raised to $31.80.
It also enforces delivery companies such as DoorDash and UberEats to take out insurance policies which cover injuries “reflective” of how much work a deliverer does.
Workers must also have third-party insurance for the vehicle they use for work.
TWU National Secretary Michael Kaine celebrated the changes, saying the “world is looking on as gig workers in Australia win new rights and protections that will change their lives, after years of campaigning for a better industry”.
“Gig workers in Australia were left outside of our workplace systems for far too long.
“They will be entitled to an absolute world-leading set of standards that we will build on over time.
“We acknowledge the constructive discussions with UberEats and DoorDash which have led to this historic moment.”
Managing Director of UberEats Australia and New Zealand Ed Kitchen also lauded the changes, saying it was a “great day for gig workers who play such a critical role in Australia’s economy and in the lives of millions of Aussies who rely on food delivery every day”.
“This is a floor, not a ceiling and the majority of UberEats delivery workers already earn above this and will continue to do so,” Kitchen told 7NEWS.com.au.
“What this delivers is certainty in knowing that whichever platform people choose to work on, they will have the same earning protections.”
Soon after the Fair Work Commission’s decision was announced, concerns were raised that the increased costs would be passed on to customers.
5News aggregated this summary from the outlet’s public feed. The full article, with all the context, is on 7news.com.au — the content belongs to 7NEWS Australia.
