Delivery drivers and riders in Australia are to get a fairer deal – Image: Rafael Ben Ari/Avalon/IMAGO
Delivery drivers in Australia are to be guaranteed “world-leading” higher pay and insurance cover on the job. The move could be a model for other countries.
Food and grocery delivery workers in Australia will be paid at least A$31.30 (€19.15, $22.11) an hour and be given accident insurance on the job under new rules approved by Australia’s industrial relations tribunal.
The hourly rate, set out in an order issued by the Fair Work Commission (FWC) on Tuesday, is above Australia’s minimum wage of A$26.44.
The FWC’s order, which could serve as a precedent for other countries, has been hailed by the Transport Workers Union (TWU) as “a landmark moment for the Australian gig economy.” The union called the new rules a “world-leading set of standards.”
What rights and protects did Australia give gig delivery drivers?
The minimum hourly rate will be paid for “engaged” time, i.e. the time between taking on a delivery job and completing the commission.
The order, which takes effect on August 17, also requires companies to provide a “reasonable minimum level of cover” for personal accident insurance on the job, without specifying exactly how much.
The workers will, however, still be responsible for maintaining third-party insurance for the vehicles used for deliveries.
Unions and workers in Australia have long sought reforms benefiting gig workers.
They have previously not been covered by many of the protections given to other employees, being classified as “independent contractors.”
The new rules are expected to affect some 250,000 workers.
UN moves to protect gig workers
The FWC’s order comes after the United Nations’ International Labour Organization (ILO) in June adopted a new global treaty for decent working conditions in the gig economy.
The standards laid down in the treaty, the first global treaty of its kind, still need ratification by governments.
In Australia, the parliament passed legislation in 2023 and 2024 under the center-left Labor government that granted gig workers more negotiating rights over minimum pay and working conditions.
Those laws gave the FWC the power to set rules for pay and insurance.
DW.com/NAN 20-08-26
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