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A New South Wales government taskforce will investigate the gig economy after another food delivery worker was killed in Sydney – the fifth death among food delivery workers across Australia in the past two months.

But Labor and Greens MPs say the taskforce has come too late, and the government should make an “emergency regulation” to take action right now.

On average, one food delivery rider has died in Australia every 11 days since 27 September.

On Tuesday afternoon, the minister for transport, Andrew Constance, and the minister for better regulation, Kevin Anderson, announced that a new taskforce would investigate the deaths in Sydney.

The taskforce will have the power to investigate the food delivery companies and “make findings for any immediate improvements or compliance activity”.

But NSW Greens MP David Shoebridge said the taskforce would only discover what people already knew.

“Gig economy workers need training, safety equipment and workers compensation and to be paid the minimum wage,” he said. “It’s good the government recognises there is a problem here, but this isn’t a solution – it’s a delaying tactic at best.”

An ongoing NSW inquiry into the gig economy, chaired by Labor MP Daniel Mookhey, had also heard evidence from multiple food riders about their conditions.

Mookhey told Guardian Australia the government should have implemented “emergency regulations” instead.

“SafeWork NSW doesn’t need a taskforce to investigate, it is their job. Safework NSW should be explaining why they haven’t issued any prohibition orders to any of these platforms where riders have died.

“Instead of announcing a meeting, the minister should be announcing a new emergency regulation to deliver better standards right now,” Mookhey said. “The government should also be backing Labor’s bill to provide minimum safety standards and equipment for riders.”

A survey conducted by the Transport Workers’ Union in September found that food deliverers earned an average of just $10.42 an hour after costs – 73% said they were worried about being “seriously hurt or killed” at work.

On Saturday, Paul, a 27-year-old man from Bangladesh, was hit by a car in the suburb of Rockdale while on a delivery for Uber Eats.

Chow Khai Shien, a 36-year-old from Malaysia who worked for DoorDash, died in central Melbourne on 24 October. Xiaojun Chen, who worked for the app Hungry Panda, and Dede Fredy, another Uber Eats rider, died in Sydney on 27 and 29 September respectively.

Federal Greens senator Mehreen Faruqi said that many food delivery riders had turned to the job because they were not covered by government support such as jobkeeper and jobseeker during the pandemic.

“When jobs evaporated earlier this year, many visa-holders turned to precarious and dangerous work in the exploitative gig economy,” she said. “Without access to income support, they had no other choice.

“Migrants’ exclusion from the Covid safety net has been a disgrace.”

Delivery company Deliveroo told a NSW inquiry into the gig economy that it received “a surge in applications” of “hundreds of riders” during the pandemic.

Under Australian labour laws, workers for food delivery apps are classified as independent contractors rather than employees. This means they are not entitled to minimum wage, sick leave, annual leave and other entitlements.

In NSW, some workers are entitled to compensation for their families if they die in the workplace or as a result of a work-related injury. Employees are largely covered by these laws but for independent contractors it can vary.

The families of Chen and Chow told Guardian Australia previously that they still did not know how much compensation they would receive for their relatives’ deaths.

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A New South Wales government taskforce will investigate the gig economy after another food delivery worker was killed in Sydney – the fifth death among food delivery workers across Australia in the past two months.

But Labor and Greens MPs say the taskforce has come too late, and the government should make an “emergency regulation” to take action right now.

A deliverer for Uber Eats was killed on Monday night in a road collision on the intersection of Chalmers and Cleveland streets in Surry Hills at 6.40pm. The man died at the scene after he was hit by a truck carrying an excavator, police said.

Another Uber Eats food deliver, Bijoy Paul, was killed in Sydney on Saturday.

On average, one food delivery rider has died in Australia every 11 days since 27 September.

On Tuesday afternoon, the minister for transport, Andrew Constance, and the minister for better regulation, Kevin Anderson, announced that a new taskforce would investigate the deaths in Sydney.

The taskforce will have the power to investigate the food delivery companies and “make findings for any immediate improvements or compliance activity”.

But NSW Greens MP David Shoebridge said the taskforce would only discover what people already knew.

“Gig economy workers need training, safety equipment and workers compensation and to be paid the minimum wage,” he said. “It’s good the government recognises there is a problem here, but this isn’t a solution – it’s a delaying tactic at best.”

An ongoing NSW inquiry into the gig economy, chaired by Labor MP Daniel Mookhey, had also heard evidence from multiple food riders about their conditions.

Mookhey told Guardian Australia the government should have implemented “emergency regulations” instead.

“SafeWork NSW doesn’t need a taskforce to investigate, it is their job. Safework NSW should be explaining why they haven’t issued any prohibition orders to any of these platforms where riders have died.

“Instead of announcing a meeting, the minister should be announcing a new emergency regulation to deliver better standards right now,” Mookhey said. “The government should also be backing Labor’s bill to provide minimum safety standards and equipment for riders.”

A survey conducted by the Transport Workers’ Union in September found that food deliverers earned an average of just $10.42 an hour after costs – 73% said they were worried about being “seriously hurt or killed” at work.

On Saturday, Paul, a 27-year-old man from Bangladesh, was hit by a car in the suburb of Rockdale while on a delivery for Uber Eats.

Chow Khai Shien, a 36-year-old from Malaysia who worked for DoorDash, died in central Melbourne on 24 October. Xiaojun Chen, who worked for the app Hungry Panda, and Dede Fredy, another Uber Eats rider, died in Sydney on 27 and 29 September respectively.

The union is now calling for the federal government to set up an inquiry into the deaths and the gig economy.

A spokeswoman for Uber Eats said: “In isolation this fatality is devastating.

“But when considered alongside other recent incidents across the on-demand food delivery sector, it is all the more concerning. It is clear the industry needs to do more to improve road safety.”

The spokeswoman said the food delivery company was “committed to playing a leading role in achieving this”.

A day earlier, after the death of Paul, the company had declined to say whether the company would be changing its provision of safety equipment or its training.

In November three food delivery riders also told a New South Wales parliament inquiry that their pay had been cut during the pandemic, even as demand for food delivery surged.

Earlier on Tuesday, Constance said the deaths were an issue that deserves “airtime”.

When asked about a Labor bill to provide more protections for riders, he said that the government should work with companies first, and the drivers themselves.

“More needs to be done in terms of the reflective equipment that they are wearing ... We want to make sure they increase their visibility on the roads,” he said. “Let’s work with the companies on a solution, and the drivers themselves. There has to be a degree of self-responsibility.”

Constance said that the state government “doesn’t have the answers just yet” but “we might look at some regulation”.

Federal Greens senator Mehreen Faruqi said that many food delivery riders had turned to the job because they were not covered by government support such as jobkeeper and jobseeker during the pandemic.

“When jobs evaporated earlier this year, many visa-holders turned to precarious and dangerous work in the exploitative gig economy,” she said. “Without access to income support, they had no other choice.

“Migrants’ exclusion from the Covid safety net has been a disgrace.”

Delivery company Deliveroo told a NSW inquiry into the gig economy that it received “a surge in applications” of “hundreds of riders” during the pandemic.

Under Australian labour laws, workers for food delivery apps are classified as independent contractors rather than employees. This means they are not entitled to minimum wage, sick leave, annual leave and other entitlements.

In NSW, some workers are entitled to compensation for their families if they die in the workplace or as a result of a work-related injury. Employees are largely covered by these laws but for independent contractors it can vary.

The families of Chen and Chow told Guardian Australia previously that they still did not know how much compensation they would receive for their relatives’ deaths.

On Friday, before the two most recent deaths in Sydney, a spokesman for Porter told Guardian Australia that companies should look at doing more to provide protections for their workers.

“It would seem that there are potential commercial advantages for companies that go the extra step to look after their workforce, whether they are employees or contractors,” he said. “As with any other employer, those with the best reputation and policies that benefit workers will be more sought after as the workplace of choice.”

After Monday’s collision, the driver of the truck was taken to St Vincent’s hospital for mandatory testing. Police investigations are ongoing.

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NSW government announces taskforce to investigate food delivery deaths

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Labor and Greens MPs say rather than a taskforce, the government should take action immediately under ‘emergency regulation’

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Four-year-old Azka is getting used to a new phrase in his vocabulary: "My father has passed away." They are an enormous five words for a small boy to carry.

In September 2020, Azka's dad, 36-year-old Dede Fredy, was hit by a car in Sydney's Marrickville while working as a food delivery rider for Uber Eats.

He was the first of five riders across various companies to die while on the job nationally in the coming months, renewing scrutiny on the multi-million-dollar online food delivery industry, which relies heavily on low-paid workers from overseas.

Upon hearing her husband had died, the first thought of Mr Fredy's widow, Nyoman Sunarti, was how to explain it to their son, Azka: "How would I answer him?"

Speaking to 7.30 for the first time from her parents' village home in north-west Bali, Ms Sunarti revealed Uber had not contacted her in the five months since her husband's death.

"Uber has not contacted me at all. Only the insurance company to provide them with my husband's documents," she said through a translator.

Ms Sunarti first heard about her husband's collision in Marrickville on September 24 from a friend in Australia who messaged her.

"He was still alive but in a critical condition in the hospital's ICU," she said.

"While he was in ICU, I couldn't sleep. I kept praying for a miracle from God to grant him a speedy recovery. But God had another plan."

The doctors said her husband had suffered irreparable brain damage.

Ms Sunarti was unable to fly to Sydney, and watched Mr Fredy's life support being switched off from Bali.

"On the 27th of September, we had a video call to watch them turn off his respirator. All our family members were on the video call as well," she said.

"They took off his respirator at 6:00pm and my husband stopped breathing. I saw it happen. I really hoped that he could be breathing again, but the doctors said that there was no chance.

"I get sad when I think about how I used to tell my husband everything.

"Now, I have no-one to talk to."

Dede Fredy left Indonesia in 2019 with the hope of earning a better living in Australia, using the money from his delivery work to provide for his family.

Both parents worked in restaurants and hotels, but it was not enough for their dream to buy a home in Bali, so Mr Fredy went to Sydney to find work.

"It was for Azka's future," Ms Sunarti said.

"We made a difficult decision because we had been together for four years, but still we couldn't afford to pay for our son's future."

Last year, Ms Sunarti lost her job because of the pandemic and moved to live with her parents, who work in the verdant rice paddies.

In the meantime, Mr Fredy sent part of his Uber Eats earnings back — he set aside about $175 a week for his wife and son, while supporting himself in one of Australia's most expensive cities.

"My late husband was a kind man," Ms Sunarti said.

"He loved our son and was dedicated to his family. He was a good father.

"When I had to work and he was at home, he was the one taking care of Azka. He helped me with household chores as well.

"When he was with his friends, he was a humorous man. He was also kind to them. All his friends liked him. When they heard about this accident they were all shocked, they couldn't believe it."

The five deaths have heaped pressure on the food delivery companies, with the Federal and New South Wales governments expressing concern about workplace safety in the sector.

Delivery riders are independent contractors and have fewer rights compared to employees, such as a minimum wage, superannuation and paid leave.

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Four-year-old Azka is getting used to a new phrase in his vocabulary: "My father has passed away." They are an enormous five words for a small boy to carry.

Over recent months there have been five deaths involving food delivery riders

As independent contractors, delivery riders are not entitled to the same rights as employees

The deaths have underscored a union campaign for stronger protections for gig economy workers

In September 2020, Azka's dad, 36-year-old Dede Fredy, was hit by a car in Sydney's Marrickvillewhile working as a food delivery rider for Uber Eats.

He was the first of five riders across various companies to die while on the job nationally in the coming months, renewing scrutiny on the multi-million-dollar online food delivery industry, which relies heavily on low-paid workers from overseas.

Upon hearing her husband had died, the first thought of Mr Fredy's widow, Nyoman Sunarti, was how to explain it to their son, Azka: "How would I answer him?"

Speaking to 7.30 for the first time from her parents' village home in north-west Bali, Ms Sunarti revealed Uber had not contacted her in the five months since her husband's death.

"Uber has not contacted me at all. Only the insurance company to provide them with my husband's documents," she said through a translator.

'My husband stopped breathing. I saw it happen'

Ms Sunarti first heard about her husband's collision in Marrickville on September 24 from a friend in Australia who messaged her.

"He was still alive but in a critical condition in the hospital's ICU," she said.

"While he was in ICU, I couldn't sleep. I kept praying for a miracle from God to grant him a speedy recovery. But God had another plan."

The doctors said her husband had suffered irreparable brain damage.

Ms Sunarti was unable to fly to Sydney, and watched Mr Fredy's life support being switched off from Bali.

"On the 27th of September, we had a video call to watch them turn off his respirator. All our family members were on the video call as well," she said.

"They took off his respirator at 6:00pm and my husband stopped breathing. I saw it happen. I really hoped that he could be breathing again, but the doctors said that there was no chance.

"I get sad when I think about how I used to tell my husband everything.

"Now, I have no-one to talk to."

Do you know more about this story? Contact Jason Om on om.jason@abc.net.au

Dreams of a better future

Dede Fredy left Indonesia in 2019 with the hope of earning a better living in Australia, using the money from his delivery work to provide for his family.

Both parents worked in restaurants and hotels, but it was not enough for their dream to buy a home in Bali, so Mr Fredy went to Sydney to find work.

"It was for Azka's future," Ms Sunarti said.

"We made a difficult decision because we had been together for four years, but still we couldn't afford to pay for our son's future."

Last year, Ms Sunarti lost her job because of the pandemic and moved to live with her parents, who work in the verdant rice paddies.

In the meantime, Mr Fredy sent part of his Uber Eats earnings back - he set aside about $175 a week for his wife and son, while supporting himself in one of Australia's most expensive cities.

"My late husband was a kind man," Ms Sunarti said.

"He loved our son and was dedicated to his family. He was a good father.

"When I had to work and he was at home, he was the one taking care of Azka. He helped me with household chores as well.

"When he was with his friends, he was a humorous man. He was also kind to them. All his friends liked him. When they heard about this accident they were all shocked, they couldn't believe it."

'They're dying without these companies blinking'

The five deaths have heaped pressure on the food delivery companies, with the Federal and New South Wales governments expressing concern about workplace safety in the sector.

Delivery rider deaths in 2020

Dede Fredy, September 27, Sydney (Uber)

Xiaojun Chen, September 30, Sydney (Hungry Panda)

Chow Khai Shien, October 24, Melbourne (DoorDash)

Bijoy Paul, November 21, Sydney (Uber)

Ik Wong, November 23, Sydney (Uber)

Delivery riders are independent contractors and have fewer rights compared to employees, such as a minimum wage, superannuation and paid leave.

The Transport Workers' Union (TWU) argues the system is designed to exploit workers and allows companies, such as Uber Eats, Deliveroo, Menulog, Hungry Panda and DoorDash, to divest themselves of responsibility to their riders.

"They're dying without these companies blinking," Michael Kaine, national secretary of the TWU, said.

"For them, it's just a blip on the bottom line."

Calls for change to contractor status

In NSW, independent contractors are not entitled to the government workers' compensation scheme for death and injury on the job.

Some companies, such as Uber Eats, Deliveroo and Menulog, cover contractors with a private insurance policy, but the union says the payout is significantly less than that provided by the government scheme.

The NSW government insurer, icare, said it "proactively lodged claims for four food delivery riders killed in NSW and is investigating the eligibility for workers compensation benefits".

Uber declined to be interviewed but told 7.30 in a statement its insurance policy did offer adequate protections, and it called for all companies to introduce mandatory insurance policies.

"Our hearts go out to the family and friends impacted by the recent, devastating events," Uber said.

"Everyone, regardless of whether they are an employee or contractor, should be covered if they are involved in an accident at work."

Uber said it could not comment on specific cases.

The TWU is now hoping to use Mr Fredy's case, and the death of another Uber Eats rider, 27-year-old Bijoy Paul from Bangladesh, as part of a test case in the court system, arguing they should be treated as employees and their families should have equal access to compensation under the government scheme.

Bijoy Paul's sister, Shimu, told 7.30 she wanted to see delivery riders treated equally.

"If my brother had worked in the kitchen at McDonald's and he had died at work, my family would be entitled to workers compensation," she said.

"But my brother was delivering the McDonald's food, not cooking it."

Mr Paul was hit by a car in Sydney's Rockdale in November last year, and was studying for a master's degree in engineering. He would have graduated this year.

"He had a promising career ahead of him and he didn't deserve to die at all - that's why I think people should know the story of Bijoy," Ms Paul said.

"It's a massive loss for my parents. We're struggling at the moment. He was not only my brother, he was my best friend."

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'He didn't deserve to die': Families of food delivery riders who died on the job reveal the true cost of convenience

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The delivery of food ordered online is a multi-million-dollar industry, but for the delivery riders it is low paid and dangerous work. Several deaths in recent months have prompted a call to ensure their families have equal access to compensation.

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Food delivery giant Uber Eats will help its riders stay injury-free on Australian streets by making them the first in its global workforce to access a new set of technology and safety gear following rider deaths that dragged attention toward regulation of the industry.

A week after Facebook agreed to pay news publishers in Australia under threat of regulation, Uber became the latest tech titan to adjust its practices in the face of pressure from Australian courts, unions and parliaments over the consequences of its business model.

From Tuesday, it will roll out a new object recognition feature in its app to detect whether its riders are wearing a helmet, require them to complete a checklist of their bike’s roadworthiness, and later this month, start distributing lights, reflective vests, bells and phone holders (though not helmets).

But the more resources a company provides to its workers, the more likely they are to be classified as employees than independent contractors and therefore entitled to the minimum wage, workers’ compensation and unfair dismissal protections.

Using contractors is key to Uber’s business model because it lowers costs and allows its workers more flexibility in their days, accepting orders from multiple platforms and to log on and off at will.

Uber Eats Australian general manager Matthew Denman said the legalities did not factor into its decision to deploy the new safety features, which follow the deaths of two Uber Eats riders in three days amid a spate of five deaths across the industry last year.

“What we said was: ‘how do we operationalise this and let’s get on and do it because it is the right thing to do so’,” Mr Denman said.

...

Mr Denman [explained] that Uber’s riders enjoyed their flexibility and were well paid, pointing to a study released last year from a Victorian government inquiry that found the average hourly rate for delivery riders on apps was about $22.

“Without getting into specifics, it reflects what we see,” he said. The company was open to discussions about paying a minimum wage while riders were on trips, Mr Denman said, though he did not countenance an overall hourly wage that would include waiting time.

Of the new measures, the helmet detection software and checklist are being rolled out in Australia before anywhere else. Other companies, including Deliveroo, already provide their riders with some safety items such as jackets. Riders will also receive more safety training.

The measures come as Uber faces widespread pressure. It settled a court case from the union late last year after Federal Court judges picked apart its argument that its Uber Eats workers were not employees and subsequently changed its contracts. The United Kingdom’s top court found a group of its workers were not self-employed this month and at a state level, the Victorian government has indicated it will regulate the sector while the NSW government is reviewing safety guidelines.

Federally, Labor and the union want an independent tribunal to give riders employee-like rights such as a minimum wage.

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Normal text size Larger text size Very large text size

Food delivery giant Uber Eats will help its riders stay injury-free on Australian streets by making them the first in its global workforce to access a new set of technology and safety gear following rider deaths that dragged attention toward regulation of the industry.

A week after Facebook agreed to pay news publishers in Australia under threat of regulation, Uber became the latest tech titan to adjust its practices in the face of pressure from Australian courts, unions and parliaments over the consequences of its business model.

Uber Eats boomed during the pandemic. Credit:James Brickwood

From Tuesday, it will roll out a new object recognition feature in its app to detect whether its riders are wearing a helmet, require them to complete a checklist of their bike's roadworthiness, and later this month, start distributing lights, reflective vests, bells and phone holders (though not helmets).

But the more resources a company provides to its workers, the more likely they are to be classified as employees than independent contractors and therefore entitled to the minimum wage, workers' compensation and unfair dismissal protections.

Using contractors is key to Uber's business model because it lowers costs and allows its workers more flexibility in their days, accepting orders from multiple platforms and to log on and off at will.

Uber Eats Australian general manager Matthew Denman said the legalities did not factor into its decision to deploy the new safety features, which follow the deaths of two Uber Eats riders in three days amid a spate of five deaths across the industry last year.

"What we said was: 'how do we operationalise this and let's get on and do it because it is the right thing to do so'," Mr Denman said.

The Transport Workers Union, which has been campaigning against what it sees as non-existent job security, low pay and frequent injuries in the gig economy, welcomed the changes but said they addressed a symptom of the sector.

"The fatal pressures imposed by Uber's exploitative business model that are literally killing workers remain unchanged," said the union's national secretary, Michael Kaine. "Offering Band-Aid solutions when the adverse publicity gets a bit hot is simply not good enough."

Transport Workers Union national secretary Michael Kaine said the safety measures did not fix fundamental problems. Credit:Alex Ellinghausen

Time pressure caused by low pay and apps that let users rate riders down for slow deliveries was the real cause of safety problems, Mr Kaine said.

Mr Denman countered that Uber's riders enjoyed their flexibility and were well paid, pointing to a study released last year from a Victorian government inquiry that found the average hourly rate for delivery riders on apps was about $22.

"Without getting into specifics, it reflects what we see," he said. The company was open to discussions about paying a minimum wage while riders were on trips, Mr Denman said, though he did not countenance an overall hourly wage that would include waiting time.

Of the new measures, the helmet detection software and checklist are being rolled out in Australia before anywhere else. Other companies, including Deliveroo, already provide their riders with some safety items such as jackets. Riders will also receive more safety training.

The measures come as Uber faces widespread pressure. It settled a court case from the union late last year after Federal Court judges picked apart its argument that its Uber Eats workers were not employees and subsequently changed its contracts. The United Kingdom's top court found a group of its workers were not self-employed this month and at a state level, the Victorian government has indicated it will regulate the sector while the NSW government is reviewing safety guidelines.

Federally, Labor and the union want an independent tribunal to give riders employee-like rights such as a minimum wage.

Start your day informed

Our Morning Edition newsletter is a curated guide to the most important and interesting stories, analysis and insights. Sign up to The Sydney Morning Herald's newsletter here, The Age's here, Brisbane Times' here, and WAtoday's here.

Nick Bonyhady is industrial relations reporter for The Sydney Morning Herald and The Age, based between Sydney and Parliament House in Canberra.

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Uber lifts safety game for Australian streets in world first

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Normal text size Larger text size Very large text size Food delivery giant Uber Eats will help its riders stay injury-free on Australian streets by making them the first in its global workforce to access a new set of technology and safety gear following rider deaths that dragged attention toward regulation of the industry.

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The Fair Work Commission has slammed Uber’s business model in a ruling today stating that the company has a contractual relationship with workers regardless of the labels it applies to them.

The Commission said that Uber had set up its business to avoid responsibility, stating “labels cannot alter the substantive nature of the relationship”. In a case taken by the TWU and food delivery driver Amita Gupta who was sacked for being 10 minutes late with an order, the Commission said regardless of what Uber’s contracts with its workers stated, “Ms Gupta performed her delivery work for and was paid for it by [Uber].”

TWU National Secretary Michael Kaine said the judgment was an important step forward in establishing rights for Uber workers.

“This judgment goes further than we have ever seen in Australia in terms of tearing down Uber’s elaborate business model and exposing it as a sham. It states what is already clear to those who work in Uber and those who use its service: that Uber is a transport service that has responsibilities to its workers, restaurants and the public who use its app,” he said.

The Commission was constrained in its judgment and rejected Ms Gupta’s unfair sacking case. The TWU is considering appealing the ruling.

“The union will be looking to appeal this judgment since the Commission felt it was constrained by a previous High Court case in terms of finding in favour of Amita. We believe Uber unfairly sacked Amita and we believe Uber must be stopped from abusing and exploiting workers,” Kaine said.

The Commission case heard Adelaide-based driver Amita Gupta had to log on to work for UberEats for several hours to receive little pay. In one week alone she logged on for 96 hours but only receiving pay of $300.

The TWU called on the Government to urgently regulate the gig economy.

“Uber operates a model of use and abuse when it comes to its workers. It rips them off, refuses to pay them minimum rates, sick leave and sacks them without warning or the chance to appeal. Even in the middle of a pandemic Uber won’t protect its workers and is offering paltry amounts to workers needing to isolate. We need to regulate this sector urgently to stop this exploitation. The Federal Government must act on behalf of workers like Amita and thousands of people like her,” he added.

The Uber case is the latest case taken by the TWU against gig economy companies to establish rights for workers. The TWU is separately taking a case for gross underpayment against Deliveroo and won a case for unfair sacking against Foodora after the company sacked a rider for speaking out about pay and conditions. Foodora has since exited the Australian market.

A TWU survey of food delivery riders in Australia shows three out of every four are paid below minimum rates. Almost 50% of riders had either been injured on the job or knew someone who had. Four UberEats riders have been killed while working.

An investigation by Australian Competition and Consumer Commission forced UberEats to admit it is a transport operator, not a technology platform, in contracts with restaurants and to stop making restaurants pay for customer refunds.

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The Fair Work Commission has slammed Uber's business model in a ruling today stating that the company has a contractual relationship with workers regardless of the labels it applies to them.

The Commission said that Uber had set up its business to avoid responsibility, stating "labels cannot alter the substantive nature of the relationship". In a case taken by the TWU and food delivery driver Amita Gupta who was sacked for being 10 minutes late with an order, the Commission said regardless of what Uber's contracts with its workers stated, "Ms Gupta performed her delivery work for and was paid for it by [Uber]."

TWU National Secretary Michael Kaine said the judgment was an important step forward in establishing rights for Uber workers.

"This judgment goes further than we have ever seen in Australia in terms of tearing down Uber's elaborate business model and exposing it as a sham. It states what is already clear to those who work in Uber and those who use its service: that Uber is a transport service that has responsibilities to its workers, restaurants and the public who use its app," he said.

The Commission was constrained in its judgment and rejected Ms Gupta's unfair sacking case. The TWU is considering appealing the ruling.

"The union will be looking to appeal this judgment since the Commission felt it was constrained by a previous High Court case in terms of finding in favour of Amita. We believe Uber unfairly sacked Amita and we believe Uber must be stopped from abusing and exploiting workers," Kaine said.

The Commission case heard Adelaide-based driver Amita Gupta had to log on to work for UberEats for several hours to receive little pay. In one week alone she logged on for 96 hours but only receiving pay of $300.

The TWU called on the Government to urgently regulate the gig economy.

"Uber operates a model of use and abuse when it comes to its workers. It rips them off, refuses to pay them minimum rates, sick leave and sacks them without warning or the chance to appeal. Even in the middle of a pandemic Uber won't protect its workers and is offering paltry amounts to workers needing to isolate. We need to regulate this sector urgently to stop this exploitation. The Federal Government must act on behalf of workers like Amita and thousands of people like her," he added.

The Uber case is the latest case taken by the TWU against gig economy companies to establish rights for workers. The TWU is separately taking a case for gross underpayment against Deliveroo and won a case for unfair sacking against Foodora after the company sacked a rider for speaking out about pay and conditions. Foodora has since exited the Australian market.

A TWU survey of food delivery riders in Australia shows three out of every four are paid below minimum rates. Almost 50% of riders had either been injured on the job or knew someone who had. Four UberEats riders have been killed while working.

An investigation by Australian Competition and Consumer Commission forced UberEats to admit it is a transport operator, not a technology platform, in contracts with restaurants and to stop making restaurants pay for customer refunds.

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UBER'S BUSINESS MODEL SLAMMED BY FAIR WORK COMMISSION - Transport Workers' Union

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The Fair Work Commission has slammed Uber's business model in a ruling today stating that the company has a contractual relationship with workers regardless of the labels it applies to them. The Commission said that Uber had set up its business to avoid responsibility, stating "labels cannot alter the substantive nature of the relationship".