Australian gig workers could lose jobs if ‘employee-like’ reforms push too hard, Uber warns

Australian workers could lose their jobs if new employee-like standards are thrust on the gig economy, rideshare and delivery giant Uber says, as it reportedly rails against the establishment of minimum standards like overtime and penalty rates for its legion of riders and delivery drivers.

As part of Labor’s pre-election promise, the government is working to establish new baseline conditions for workers in the gig economy, splitting the difference between the flexibility offered to traditional independent contractors and the workplace security enjoyed by fully-fledged employees.

Minister for Employment and Workplace Relations Tony Burke says that workplace rights currently “fall off a cliff” for some independent contractors engaged in the gig economy.

The federal government is expected to introduce legislation enforcing those new employee-like protections in the second half of 2023.

Before that happens, The Australian Financial Review reports Uber is calling for lawmakers not to establish gig economy rules it believes are too close to the ’employee’ side of the spectrum.

In a new submission to the Department of Employment and Workplace Relations (DEWR) consultation on the new framework, Uber has reportedly railed against a number of proposals, including the establishment of penalty rates, overtime entitlements, and mandatory rest breaks for its workers.

Moving gig economy workers onto an “award-like” system would result in “meaningful job loss” through the cost and complexity of adhering to such a system, said Dom Taylor, the company’s general manager for Australia and New Zealand.

The company said scrapping the independent contracting model for gig workers in overseas markets like Switzerland saw the company shed 67% of its delivery workforce.

The federal government should ensure the Fair Work Commission is not given a carte blanche over the new employee-like framework, the company added.

However, the rideshare juggernaut is reportedly on board with rules which would establish a minimum floor on rates, mapped over a monthly period and accounting for vehicle running costs, and the establishment of new dispute resolution pathways for workers.

Uber, union aligned on key issues ahead of reform

The proposed overhaul of gig economy conditions has been a long time coming.

To establish common ground between the sector and its critics, Uber has already brokered minimum expectations with the Transport Workers’ Union (TWU), which represents riders and drivers across the gig economy.

The two parties signed a four-part agreement in June last year, committing to an enforceable floor on gig economy earnings and new dispute resolution pathways in case of account ‘deactivation’.

Both measures are reportedly supported in Uber’s new DEWR submission.

The agreement also advocates for an independent body to ensure “appropriate enforcement exists to meet these standards and objectives”, and the right for workers to collectively bargain and join a union.

More recently, the TWU has pointed to Uber’s new grocery delivery partnership with Coles as a chance to enshrine minimum working standards and conditions for gig workers tasked with packing and delivering supermarket orders.

“We will monitor this hawkishly to make sure it lives up to its potential,” TWU national secretary Michael Kaine said at the time.

Uber’s partnership with Coles is also reflected in the gig economy platform’s new submission.

In its submission to the DEWR, Uber reportedly argued minimum pay standards should not be constrained to individual jobs like ‘packer’ or ‘rider’, given the likelihood one worker may fulfil both duties.