Uber Eats, Deliveroo among the companies to study in the Victorian Workers' Rights Inquiry



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updated

September 21, 2018 17:27:35

Home delivery services like Uber Eats and Deliveroo may be popular with punters, but their rapid expansion into Australia is accompanied by stories of workers' exploitation.

Those who deliver meals from large restaurants to hungry customers are part of the emerging economy of concert and demand economy, and they often lack the protections enjoyed by more established sectors.

Concerned by stories like those of Icce Mejia, the Victorian government has announced a survey of an industry synonymous with procurement.

Mr. Mejia was one of the best delivery bike drivers with the late Foodora.

Under their system, he had to have a business number and provide his own bike.

"Basically, you are an independent contractor," he said.

Mr. Mejia, who moved to Australia from Mexico in 2015, worked at least 50 hours a week with Foodora.

But if he ran to deliver more orders – the staff was paid for the order – he was involved in an accident when the door of a parked car was opened on him.

Despite a broken arm and damage to his bike, he placed the order in two more blocks.

The injury occurred at work, but he received no compensation because he "did not work for them" and therefore had no rights or insurance.

"As long as we are independent contractors, they use us against us whenever something like this happens," he said.

"You are alone.

"But while we work very well, and we have no problem, they tell you what to do … they are basically our bosses."

During his month off, he slipped into Foodora's job rankings, which meant he could not access any changes.

Workers are "deliberately deprived of their rights"

Unions say the problem in the concert economy is that most workers have individual contracts or work as subcontractors, which deprives them of their basic rights in the workplace.

In response to these growing concerns, the Victorian government is establishing an on-demand labor force survey, with the former Fair Work Mediator, Natalie James, being hired to chair the survey.

The purpose of the survey is to determine what legislation is needed to better protect workers and consumers. It will also look at organizations like AirTasker.

Problems with industry aroused widespread interest in early June when Foodora food delivery company decided to withdraw from Australia soon after the Labor Law Mediator filed a lawsuit. .

The transport workers' union is fighting for the protection of workers in the sector.

National Secretary Michael Kaine said a survey of entertainment workers revealed that 70% of respondents thought they were denied rights to work.

"This is not a bright new economy," he said.

"It's a good old-fashioned exploitation, but this time with billionaires of technology via an application.

"They are being scammed because companies are structuring themselves to deliberately deny their rights."

Fictitious contracts and "rather dangerous circumstances"

Victorian Minister of Industrial Relations Natalie Hutchins said some companies have resorted to fictitious contracts to avoid paying the minimum wage, vacation, sick leave, and old-age pensions.

Workers also struggle to get help when they are injured at work.

"Unfortunately, there have been far too many examples of exploitation of workers and also of workers facing unsafe conditions, especially when they use our roads," Ms. Hutchins said.

The investigation will review allegations and decisions regarding contractual arrangements and will determine if these arrangements are used to avoid workplace laws and other statutory obligations in Victoria.

"We want to make sure that these jobs are free from exploitation of the workforce," said the minister.

Ms. Hutchins said the next big area to look at would be people who buy and deliver food from supermarkets to homes.

The survey is expected to deliver a final report to the government by the end of 2019 and will solicit public submissions, including contributions from workers and businesses.

"Open and really flexible"

Uber said that people using the Uber Eats app or offering trips using the Uber app were independent contractors.

"Uber provides an open and truly flexible revenue generating opportunity for anyone who is registered and meets the regulatory requirements to use the application," said a spokesperson.

"This means that there is no succession and that partners are not obliged to be online or in certain places.

"Partners are free to accept or reject requests sent to them and are also free to use other applications.

"The insurance requirements for ridesharing drivers are mandatory in all Australian states and territories.

"These mandatory insurance requirements add to the coverage that Uber is required to hold to meet its obligations."

Deliveroo has been contacted for comments.

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First posted

September 21, 2018 17:20:57

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