‘World-first’ deal to give delivery drivers better pay
Delivery worker Utsav Bhattarai has spent the last five years working under “really intense” conditions.
“Are you sick? You need to go to work,” he said.
“There’s a hailstorm? You need to get to work.”
“Just one more order, another hour.”
The signing of a landmark wage agreement between Uber Eats, DoorDash and the Transport Workers Union is an emotional moment.
Mr Bhattarai is confident that a more stable income will greatly improve the lives of delivery staff.
Under the draft deal, which still needs to be approved by the Fair Work Commission, delivery drivers will be paid a minimum of $32 per hour from July 2026, while passengers will be paid at least $31.30.
“This benefit is for every worker who can now take sick leave, work 40, 50 hours, stay home, spend some time with their families,” Mr. Bhattarai said.
“We’re not talking about a decent wage, we’re talking about minimum wage.”
Drivers and passengers will also have access to accident insurance and greater transparency around payment and dispute resolution processes.
Unions have long argued that gig economy workers are exploited by ridesharing apps, while the rest of the workforce has limited rights such as leave, injury insurance and union representation.
Delivery drivers face variable income streams and, until now, there have been no guarantees of being paid above minimum wage.
The union’s national secretary, Michael Kaine, said the agreement was a world first.
“This is a huge reward for these workers who have been fighting since 2017 to turn their lives around,” he told reporters in Canberra on Tuesday.
“Global workers are the silent heroes of our economy. They literally put their bodies on the line.”
Delivery companies have said the changes will create little increase in their prices, arguing that most workers already receive these pay rates and that the changes are designed to prevent a small number of workers from falling through the cracks.
“Uber Eats has long supported sensible, modern reforms that strengthen protections and benefits for delivery drivers, while preserving the flexibility that is at the heart of gig work,” Uber Eats Australia and New Zealand general manager Ed Kitchen said.
“We believe that fair standards and flexibility should not be mutually exclusive.
“Both of these are crucial to ensuring the business continues to meet the expectations of Australians and reflect the important role distribution workers play in their communities.”
Workplace Relations Minister Amanda Rishworth welcomed the agreement negotiated as part of Labour’s gig economy reforms.
“This seems to be the case when you have co-operative workplaces where workers, companies and their unions sit down and discuss what really matters,” he told reporters in Canberra.
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