A groundbreaking agreement has been reached between the Transport Workers Union (TWU) and two of Australia’s largest food delivery platforms, Uber Eats and DoorDash. This pivotal deal is poised to significantly enhance the pay structure for gig economy workers across the nation.

The newly established accord introduces a set of foundational standards aimed at protecting the interests of delivery drivers and riders. Among these standards are a guaranteed “safety net pay” rate, mechanisms for resolving disputes, accident insurance coverage, and the provision of legal representation rights.

This initiative marks a significant shift towards wage stability for delivery workers who frequently earn less than Australia’s minimum wage due to the per-delivery payment model, which does not account for the hours worked. As a result, Uber Eats and DoorDash employees can anticipate a notable 25 percent increase in their earnings.

The deal would provide wage stability for delivery workers who are often paid below Australia’s minimum wage due to being paid per delivery rather than hours worked.

This would result in a 25 per cent pay rise for Uber Eats and DoorDash workers.

If approved, the new standards would come into effect from July next year.

It follows several years of union campaigning and negotiations between TWU and the two delivery services.

“Gig workers have campaigned for years for a better industry and for the first time in the world, there could soon be a minimum floor that represents a life-changing increase to their pay,” said TWU National Secretary Michale Kaine.

“After constructive discussions with Uber Eats and DoorDash, this is a significant step towards a fairer gig economy.

“We look forward to the Fair Work Commission considering these new standards and working towards a strong foundation for fairness in the gig economy.”

Both Uber Eats and DoorDash supported the proposal.

DoorDash APAC Vice President Simon Rossi said it is important that working standards in the on-demand economy continue to “evolve”.

“Delivery workers keep Australia moving, helping busy households and supporting small businesses,” Rossi said.

“This proposal shows we can work together to lift standards and still enable the flexibility people rely on, under the Government’s new laws.”

Uber Eats Australia and New Zealand Managing Director Ed Kitchen added that the service supports “sensible and modern reforms”.

“We believe fair standards and flexibility should not be mutually exclusive,” Kitchen said.

“They are both essential to ensuring gig work continues to meet the expectations of Australians and reflects the important role delivery people play in their communities.”

Menulog, Foodora and Deliveroo have all pulled out of the local market in recent years, citing tough trading conditions.