Why it could soon be a lot more expensive to grab an Uber or get takeout delivered to your doorstep
The price of getting takeaway delivered or taking an Uber will rise due to proposed changes to workplace rules, Employment and Work Relations Secretary Tony Burke has admitted.
The changes announced will empower Australia’s industry arbiter – the Fair Work Commission – to create minimum standards, including pay and safety conditions, for ‘gig’ workers on digital platforms across industries including food delivery, ride sharing and in-demand concern.
Mr Burke accepted that there would be ‘some pass-through’ to consumers as a result of the reforms, as platforms would inevitably charge their customers more.
However, he argued that it was essential to pay a “little bit extra” to bring gig workers’ terms and minimum wages in line with those of their permanent counterparts.
Paying too little is cheaper. Slavery is also probably cheaper,” Burke said in an address to the National Press Club on Thursday.
Food deliveries could become expensive if the federal government enacts new laws that will raise the price of takeout meals
“If that means paying a little bit extra when your pizza arrives at your doorstep, and they’re more likely to be on their way safely, I think that’s a pretty small price to pay.”
The changes will be tabled in parliament next Monday and will be part of the Closing Loophole Act, which will also include a crackdown on labor hiring, making it easier for temporary workers to move into permanent employment, and increasing penalties for underpaid wages.
In his speech, Mr Burke also revealed that some employees at digital marketplaces such as Airtasker, HiPages and Gumtree could fall under the proposed workplace rule changes if they pass a new test.
The National Employer Association, Ai Group, was similarly critical of the changes, arguing that the changes undermined the country’s anemic productivity growth and would discourage the creation of new small businesses.
“The proposals … are the antithesis of what is needed to build a competitive economy for the 21st century,” said Innes Willox, CEO of Ai Group.
“This is going to be a lawyers’ picnic, everything is going to be moot now in the Fair Work Commission.
The proposed reform could mean that the price of having food delivered through platforms like Uber Eats will rise
The changes reflect efforts to provide minimum working conditions for people working in the gig economy, such as food delivery workers
‘Employers are already under the hammer because of the costs they incur internationally, the higher energy costs and the threat of power outages.’
But the trade union movement accused employers of ‘howling wolf’ and waging a ‘scare campaign’.
Speaking to reporters in Canberra, ACTU Secretary Sally McManus described the reforms as “sensible, modest changes” that would improve the lives of workers in the gig economy.
“The ACTU has never said that all jobs must be safe,” she said.
“We’re just saying it’s gone too far.
“Finally we have a government that, according to today’s announcement, is actually going to make very modest changes.
“We would actually like things to move forward, but sensible, modest changes that are absolutely necessary to help people address the current cost-of-living situation.”