Delivery drivers in Australia are set to receive a guaranteed minimum hourly wage of A$31.30 (€19.15, $22.11) and accident insurance coverage on the job, under new rules approved by the country's industrial relations tribunal, the Fair Work Commission (FWC).

The hourly rate, which exceeds Australia's minimum wage of A$26.44, was outlined in an order issued on Tuesday. The order, effective from August 17, applies to food and grocery delivery workers, covering approximately 250,000 people.

The FWC's decision has been hailed by the Transport Workers Union (TWU) as a "landmark moment for the Australian gig economy" and a "world-leading set of standards." The minimum pay applies to "engaged" time, from when a worker accepts a delivery job until it is completed.

Additionally, companies must provide a "reasonable minimum level" of personal accident insurance for workers, though the exact amount is not specified. Workers remain responsible for maintaining third-party insurance for their delivery vehicles.

This reform comes after years of advocacy by unions and workers, who were previously classified as "independent contractors" and thus excluded from many employee protections. The new rules aim to address this gap.

The FWC's order follows the adoption in June of a global treaty by the United Nations' International Labour Organization (ILO) on decent working conditions in the gig economy. The treaty, the first of its kind, still requires ratification by governments.

In Australia, legislation passed in 2023 and 2024 under the center-left Labor government granted gig workers more negotiating rights over minimum pay and working conditions, empowering the FWC to set these rules. The move could serve as a model for other countries grappling with gig economy labor issues.

Source: www.dw.com