Government prepares for battle over the gig economy

An Uber Eats driver at work (Getty)

An Uber Eats driver at work (Getty) Source: Getty / Matthew Horwood

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The Federal Government has set itself on an industrial relations warpath with big business over changes to the industrial relations system. Labor is set to introduce its industrial relations overhaul next week, designed to protect gig economy workers and set conditions for a range of jobs.


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TRANSCRIPT

Gig economy workers in Australia are set to benefit from minimum pay and protection against unfair deactivation.

A series of new industrial relations laws has been released to remove pressure from gig workers relying on tips to make ends meet.

Ride-share drivers and food delivery riders are among those who will benefit from the changes.

Utsav Bhattarai is an Uber driver who joined the Transport Workers Union to fight for others in the GIG economy.

"From the start to finish we are just a number, we are not counted as a worker. And when we wait for the order, We're just by ourselves we are sometimes stressed Sometimes even, I would say, depressed because of the financial situation that we're going through because we have to work, hundreds of hours to make a very basic pay to pay off our basic survival needs. "

The gig economy is large, as it covers food delivery drivers, aged care staffing apps and the National Disability Insurance Scheme.

The government says people working in those areas look like employees but are actually working as independent contractors - and there is a significant lack of rights and protections compared to a real employee.

The bill set to be introduced by the Albanese government on Monday [[SEPT 4]], will allow the Fair Work Commission to set minimum standards for hundreds of thousands of employee-like workers on digital platforms from the 1st of July 2024.

It comes as part of Labor's 2022 election commitment to regulate the gig economy, which aims to reduce unsafe practices that have led to delivery driver deaths.

Workplace Relations Minister Tony Burke announced four proposed changes on Thursday [[August 31]], including closing wage theft loopholes, ending permanent casual and labour hire employment, and improving gig worker rights.

"For the gig worker who we've all seen, who is currently out there, running red lights, going up on to the footpath, down onto the road, on the road creating an extra lane between the parked cars and the traffic, knowing at any moment, if a car door opens, instead of riding between the lanes they’ll be lying beneath the traffic, they’ll have some minimum standards. Closing these loop holes will change their lives."

Workers who use digital platforms for "employee-like" jobs will be classified and protected under the changes, with access to sick leave and a minimum rates pay.

But Labor claims it will not affect independent contractors or tradespeople with a high degree of autonomy.

"We are talking about some of the lowest paid people in Australia, and if that means there's a tiny bit extra you pay when your pizza arrives to your door and they're more likely to be safe on the roads getting there, then I reckon it's a pretty small price to pay."

Business groups and the opposition have condemned the changes.

Jennifer Westacott is the chief executive of the Business Council of Australia.

"This will not close loopholes, it will create problems. It will hurt workers because it will hurt productivity, the key to getting higher wages. It will hurt small business at a time when they are struggling under the sea of red tape. It will cost consumers more, government on the record today it's going to cost you more of your pizza if you for your delivery. How much is it going to cost that's going to hurt Australian consumers. The bill should not be passed. "

Mining and business leaders also warn that they will deploy lobbying efforts to stop the bill.

Tania Constable is the chief executive of the Minerals Council.

"This legislation drags in every part of the economy.  That is driving up costs, and it's driving up complexity, for every business, and that's going to impact every consumer, and every worker across Australia. At the end of the day, make no mistake, we're talking about less jobs."

13 delivery workers have died on Australia roads in recent years.

Utsav Bhattarai hopes for a better future for the industry.

"We're working in a multi billion dollar companies, but we have nothing. We do not have any physical security. sometimes we get grocery orders which are 60 kilos and we're getting paid $10 to drive up to seven, eight kilometers and that's not transparent. We do not know how we are getting paid. What's the metric, what's the parameters of us getting paid? I'm getting for the same order if I'm if I'm getting paid $5 and other drivers getting $6 or $7, and it's completely not transparent."

If the legislation passes, it will be one year away from changing that reality.

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