Australian gig workers may soon receive significantly better pay and workplace protections after Uber Eats and DoorDash reached a landmark agreement with the Transport Workers’ Union (TWU). The companies jointly submitted a proposal to the Fair Work Commission outlining enforceable standards for food delivery riders and drivers. These include a guaranteed hourly wage, improved dispute-resolution systems, clearer job information, and mandatory accident insurance. If approved, the deal would extend beyond the two major platforms to cover the entire food delivery industry, including services like Hungry Panda, and could influence similar reforms in other gig-based sectors such as rideshare and online caregiving.
Australia Moves Toward Historic Pay and Safety Standards for Couriers
The proposal arrives at a pivotal moment for the industry. Menulog, a long-standing competitor, has shut down its Australian operations as of 26 November, pushing customers and restaurant partners toward Uber Eats and strengthening the dominance of the two US giants. Under the draft agreement, gig couriers would earn a minimum of A$31.30 per hour—aligned with Australia’s minimum casual wage—representing an estimated 25% pay increase for many riders currently earning per delivery rather than per hour. The proposal also ensures access to work records and requires platforms to provide accident insurance, a crucial safeguard given that at least 18 delivery workers have died on the job since 2017.
Government representatives and union leaders say the reform is overdue. Employment minister Amanda Rishworth highlighted that gig workers have “fallen through the cracks” for years, missing out on basic protections and relying heavily on tips. TWU national secretary Michael Kaine described the draft framework as a “world-first” that marks a transformative moment for gig workers’ rights. According to Kaine, years of campaigning have finally led to a system that could provide life-changing income stability for hundreds of thousands of workers.
Delivery Workers Praise Reforms Aimed at Reducing Risk and Stress
Delivery workers themselves expressed relief and hope. Canberra courier Utsav Bhattarai explained how many riders feel pressured to take risks in traffic or work while exhausted just to meet basic expenses. He said the proposed changes would reduce that pressure and create a safer working environment. Melbourne delivery rider Eric Ireland echoed this, adding that hourly pay would make long waiting periods at restaurants far less stressful and financially damaging.
Uber Eats and DoorDash insist that adopting fair standards will not significantly increase customer prices, even as the industry consolidates after Menulog’s exit. With greater market share and room for growth, both companies argue that it is possible to balance fair pay, strong protections, and the flexibility gig workers value. Ed Kitchen, managing director of Uber Eats ANZ, described the agreement as a “meaningful step” toward modern laws that reflect modern work. If the Fair Work Commission approves the proposal, the new standards will take effect from July next year.
Summary:
Australia’s gig economy is set for major reform as Uber Eats, DoorDash, and the Transport Workers’ Union propose enforceable standards for delivery workers, including an A$31.30 hourly wage, insurance, and safer conditions. The landmark deal aims to reduce risks, improve rights, and modernize gig-work laws if approved next July.
