The Times Australia
Fisher and Paykel Appliances
The Times World News

.

What's driving Uber's historic agreement with the TWU on gig work

  • Written by Caleb Goods, Senior Lecturer - Management and Organisations, UWA Business School, The University of Western Australia

Uber Australia has struck a historic agreement with the Transport Workers’ Union – a statement of principles[1] that re-regulate work in the Australian rideshare and food delivery industry.

This is a major shift to industrial relations in the gig economy.

Uber and its rival platforms have largely treated their workforce as independent contractors, not employees with rights to benefits such as sick leave, minimum wages or union representation.

Now the poster company of the gig economy has agreed with the union that workers on the platform should receive some baseline conditions.

NSW Transport Workers Union secretary Michael Kaine, centre, with Uber drivers and NSW senator Tony Sheldon (a former TWU secretary), speak about the agreement with Uber at a press conference on June 29 2022.
NSW Transport Workers Union secretary Michael Kaine, centre, with Uber drivers and NSW senator Tony Sheldon (a former TWU secretary), speak about the agreement with Uber at a press conference on June 29 2022. Dan Himbrechts/AAP

What Uber and the Transport Workers’ Union agree on

First, and most importantly, Uber and the Transport Workers’ Union have agreed to support the creation of an independent umpire, potentially as part of the Fair Work Commission, to apply minimum standards and practices across the industry.

There are four key objectives.

First, an enforceable floor around earnings, to give transparency to drivers and ensure platforms don’t seek to compete by driving down labour costs. Earnings are a critical concern[2] for gig workers.

Second, enhanced and low-cost opportunities for workers to resolve disputes via an independent umpire. Gig workers, as contractors, currently have little recourse to address grievances[3].

Read more: Delivery workers are now essential. They deserve the rights of other employees[4]

Third, the right for workers to collectively organise and be represented by a union.

Fourth, the effective enforcement of these and other standards, including occupational health and safety compliance.

Beyond these key principles, Uber and the Transport Workers’ Union have also agreed to have an ongoing conversation about making these principles work in reality, not just on paper.

Why now?

The Uber-Transport Workers’ Union statement of principle follows the union signing a similar joint charter with DoorDash[5] in May.

Given DoorDash has been operating in Australia since 2019[6], and Uber since 2012[7], why are they making these voluntary agreements to pursue improved working conditions now?

The answer seems reasonably obvious: the Morrison government, which had little enthusiasm for regulating the gig economy, has been replaced by the Albanese government, which has signalled it will[8].

Anthony Albanese promises better outcomes for gig economy workers and others in casual or contract work on February 10 2021.
Anthony Albanese promises better outcomes for gig economy workers and others in casual or contract work on February 10 2021. /Darren England/AAP

The new Labor government’s plans for the gig economy[9] and employee-like work arrangements include giving the Fair Work Commission the power to regulate “employee-like” forms of work.

The exact details and timeline for these reforms have not been announced.

These union-platform agreements suggest that platforms are keen to get in front of, and potentially shape, this regulation agenda.

No more debating classification

Critically, unions and platforms working together may mean the end of the classification debates – employee versus independent contractor – that have been fought out[10] in the Fair Work Commission and the courts over the past five years.

As we have suggested previously[11], the debates over whether workers treated as independent contractors should actually have been classified as employees have largely been a dead-end. They may have even harmed workers, as platforms have sought to avoid doing anything the Fair Work Commission or a court might interpret as indicative of an employer-employee relationship.

Read more: Did somebody say workers' rights? Three big questions about Menulog's employment plan[12]

This agreement represents a different approach that may produce better outcomes. It should help platforms avoid the cost and reputational damage of ongoing litigation. It also helps the union. Recent High Court rulings[13] have made it harder for the union to recruit, organise and represent gig workers. This agreement implicitly accepts the union’s right to represent those workers.

Setting the agenda

These statements of principles also strongly align with the Albanese government’s proposal[14] to imporve the conditions of “employee-like work.”

Uber and Doordash appear to be embracing self-regulation to help set the agenda around what is (and importantly what is not) included in the new regulations for employee-like work arrangements.

The future of gig work is looking very different from what it did a few months ago.

References

  1. ^ statement of principles (www.twu.com.au)
  2. ^ critical concern (journals.sagepub.com)
  3. ^ address grievances (theconversation.com)
  4. ^ Delivery workers are now essential. They deserve the rights of other employees (theconversation.com)
  5. ^ joint charter with DoorDash (doordash.news)
  6. ^ since 2019 (www.cmo.com.au)
  7. ^ since 2012 (www.industry.gov.au)
  8. ^ signalled it will (theconversation.com)
  9. ^ plans for the gig economy (www.abc.net.au)
  10. ^ have been fought out (theconversation.com)
  11. ^ suggested previously (theconversation.com)
  12. ^ Did somebody say workers' rights? Three big questions about Menulog's employment plan (theconversation.com)
  13. ^ Recent High Court rulings (cdn.hcourt.gov.au)
  14. ^ proposal (www.alp.org.au)

Read more https://theconversation.com/whats-driving-ubers-historic-agreement-with-the-twu-on-gig-work-186044

Active Wear

Times Magazine

World Kindness Day: Commentary from Kath Koschel, founder of Kindness Factory.

What does World Kindness Day mean to you as an individual, and to the Kindness Factory as an organ...

In 2024, the climate crisis worsened in all ways. But we can still limit warming with bold action

Climate change has been on the world’s radar for decades[1]. Predictions made by scientists at...

End-of-Life Planning: Why Talking About Death With Family Makes Funeral Planning Easier

I spend a lot of time talking about death. Not in a morbid, gloomy way—but in the same way we d...

YepAI Joins Victoria's AI Trade Mission to Singapore for Big Data & AI World Asia 2025

YepAI, a Melbourne-based leader in enterprise artificial intelligence solutions, announced today...

Building a Strong Online Presence with Katoomba Web Design

Katoomba web design is more than just creating a website that looks good—it’s about building an onli...

September Sunset Polo

International Polo Tour To Bridge Historic Sport, Life-Changing Philanthropy, and Breath-Taking Beau...

The Times Features

How early is too early’ for Hot Cross Buns to hit supermarket and bakery shelves

Every year, Australians find themselves in the middle of the nation’s most delicious dilemmas - ...

Ovarian cancer community rallied Parliament

The fight against ovarian cancer took centre stage at Parliament House in Canberra last week as th...

After 2 years of devastating war, will Arab countries now turn their backs on Israel?

The Middle East has long been riddled by instability. This makes getting a sense of the broader...

RBA keeps interest rates on hold, leaving borrowers looking further ahead for relief

As expected, the Reserve Bank of Australia (RBA) has kept the cash rate steady at 3.6%[1]. Its b...

Crystalbrook Collection Introduces ‘No Rings Attached’: Australia’s First Un-Honeymoon for Couples

Why should newlyweds have all the fun? As Australia’s crude marriage rate falls to a 20-year low, ...

Echoes of the Past: Sue Carter Brings Ancient Worlds to Life at Birli Gallery

Launching November 15 at 6pm at Birli Gallery, Midland, Echoes of the Past marks the highly anti...

Why careless adoption of AI backfires so easily

Artificial intelligence (AI) is rapidly becoming commonplace, despite statistics showing[1] th...

How airline fares are set and should we expect lower fares any time soon?

Airline ticket prices may seem mysterious (why is the same flight one price one day, quite anoth...

What is the American public’s verdict on the first year of Donald Trump’s second term as President?

In short: the verdict is decidedly mixed, leaning negative. Trump’s overall job-approval ra...