The decision of the NSW Industrial Relations Commission is the result of an industry-wide consultation
Delivery drivers in New South Wales will be paid a minimum wage by their employers starting March following a decision from the NSW Industrial Relations Commission. The ruling makes owner-drivers of vans with a carrying capacity between 1.5 and three tonnes eligible for the minimum rate of pay starting $27.83 an hour in March, before eventually escalating to $37.80 by July 2025.
The decision affects employers and employees of freelance delivery drivers, including Amazon Flex, in what is believed by the Transport Workers Union (TWU) as a first for the retail company. TWU NSW secretary Richard Olsen called the decision a "massive victory" for the couriers who are part of the TWU's Fight for 40 campaign.
"Today's decision will be welcome relief to those drivers – an increase of more than 40% over the next three years, to finally catch them up to where they should be after 15 years of stagnant pay," said Olsen in a statement.
According to TWU national Secretary Michael Kaine, the impact of the commission's decision will be "felt around the world."
"Gig behemoths are on notice: this is what happens when workers call out these dangerous bottom feeders and fight together for a fair day's pay," Kaine said. "Today's win confirms that it's entirely possible for all workers to have access to enforceable rights and protections, regardless of their employment status."
He then called on Prime Minister Scott Morrison to establish an independent body that will come up with "binding standards" in transport to help prevent exploitation of workers, an appeal also made by the Australian Council of Trade Unions in reaction to the case.
"While today's decision is a substantial win in NSW, the national crisis will remain unless the Morrison Government takes a stand and regulates the gig economy to ensure that workers have basic rights," said ACTU secretary Sally McManus.
Read more: Aussies turn to gig economy for extra pay
The decision of the NSW Industrial Relations Commission is the result of an industry-wide consultation headed by the TWU, which involved other industry groups and major transport companies like FedEx, Global Express, and Tolls.
In response to the decision, a spokesperson for Amazon told Reuters that it is "pleased to continue offering Amazon Flex delivery partners competitive pay as well as the flexibility to work when it suits them."
The welfare of gig workers around the world has been a growing concern among various states as the industry continues to grow, especially since such employees are not granted regular employee benefits.
Australian Business Lawyers and Advisors director Kyle Scott late last year warned employers to start looking into their internal contracts especially on gig economy and work rights.
"We will start to see the political parties (particularly the ALP) release their IR reform agendas, with a likely focus on secure employment, protections for gig economy and migrant workers, reforms to anti-discrimination and sexual harassment laws," Scott told HRD.
Efforts have also been made overseas to help improve the conditions of workers under the gig economy, with the European Commission late last year issuing draft rules that seek to give gig economy workers employee benefits.
