In a big win for food delivery workers, the minimum pay in Australia is set to increase after Uber Eats and DoorDash agreed to a new deal regarding operations in the region. The pay reform for these delivery workers in Australia comes as a result of a new draft agreement with the country’s transport union, pending approval from the Fair Work Commission. This marks a significant step forward for the gig economy in the region, and could be taken as a sign for gig workers across the globe to step up their own efforts to improve their dealings with their employers.
Uber Eats and DoorDash have agreed to a new pay deal with the TWU, authorizing a new standard of minimum pay for Australian delivery workers. (Image: Freepik)
Delivery Workers in Australia See the Possibility of Increased Minimum Pay
After years of talks, the Transport Workers Union (TWU) has officially reached an agreement with Uber Eats and DoorDash, two of the largest on-demand delivery service providers, to change the way that wages are calculated for employees. As part of this deal, workers could earn a minimum safety net rate of pay of at least 31.30 Australian dollars per hour, which is approximately 20.19 US dollars per hour. This could represent a 25% increase for workers, who are paid by the delivery rather than hours worked.
According to Reuters, the Transport Workers Union’s pay deal could help hundreds of delivery workers match the minimum wage earned by Australian casual workers. Both the union and the delivery platforms have agreed to the terms that have been laid out, and the deal will now have to be approved by the Fair Work Commission.
If approved, the deal is expected to be implemented by July 1, 2026, with a marginal increase in January 2027. The hourly pay for delivery drivers for these companies in Australia applies uniformly to all modes of transport used, with slight variations based on the vehicle.
The Transport Workers Union’s Pay Deal Also Includes Other Considerations
On a post on LinkedIn, the TWU celebrated its victory, “For the first time in the world, there could soon be a minimum floor that represents a life-changing increase to their pay.” Not only does the Uber Eats and DoorDash pay deal with the union guarantee better pay security and transparency, but the companies are also expected to offer accident insurance for their workers, with a “reasonable minimum level of cover.”
The union also highlighted the importance of giving delivery workers representation rights and other benefits to legitimize and compensate them for their daily labor. The companies are expected to introduce updated dispute resolution processes and invest in collecting feedback from workers, understanding their qualms about the job.
While the safety net provided by the hourly pay for delivery drivers in Australia is a win, it doesn’t translate into high wages on its own. Slow delivery days may still be difficult for many, and workers will have to rely on the higher peak time rates and other deals to earn above the baseline rate in a substantial way.
The Gig Workers’ Pay Reform in Australia Marks a Critical Step Forward
The progress on minimum pay for Australian delivery workers is not occurring in isolation. The TWU credited previous regulations that were introduced for taking the bold first step forward in pushing for greater labor support. The Albanese government implemented a broader set of regulations referred to as the “Closing Loopholes” legislation by Workplace Relations Minister, Tony Burke. The legislation attempted to improve the work conditions and terms of employment for gig workers.
“This wouldn’t have been possible without the Closing Loopholes legislation passed by the Albanese government,” the TWU explained. “With these new rights, and with more gig workers joining the TWU every day, we’re building power to win even more rights – including fairer standards and conditions.”
For now, the final decision on the matter of minimum pay for food delivery workers in Australia is left to the FWC. The results of the decision could have a ripple effect across the gig industry in non-food delivery sectors as well, pushing for more legitimacy in other segments of the industry. A similar shift may also be pursued in other regions across the globe, but only time will tell how these play out.
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