Protections and pay increases for Uber drivers could be fruitless as fares plummet

As part of the Closing Loopholes Act, gig workers such as Uber drivers will be able to have access to the Fair Work Commission to apply for minimum wages. However, as Uber tightens its fare prices, these benefits could be limited.

Protests across some of Australia’s major cities have been spearheaded by Uber drivers who are fed up with the working conditions they’re being subjected to by their conglomerate employer.

Hundreds of Uber drivers recently decided to strike, going offline in an attempt to call for better pay.

Rideshare Network secretary and Uber driver Shane Millsom said the rideshare platform has made it nearly impossible for drivers to earn a living.

“They haven’t [just] reduced passenger fares, they’ve reduced driver pay as well,” Millsom told 7News.

“Uber is absolutely aware that many drivers have no other choice. Rideshare drivers are not faceless businesses; they are human beings who deserve to be treated with dignity and respect.”

Recently the NSW government announced its plan to implement new reforms that offer protections for gig workers, such as having unfair dismissal protections and recourse to an independent industrial umpire.

“We live and work in an economy that is rapidly changing to address the needs of our current society. We must ensure our industrial relations laws keep up with those changes,” said Minister for Industrial Relations Sophie Cotsis.

“The public relies on food delivery and rideshare workers every day, and workers can rely on us for the same legal protection offered to other couriers and taxi drivers in the transport industry under chapter six of the Industrial Relations Act,” said Minister Cotsis.

Introduced in the Closing Loopholes Act – which will come into effect in November – new parameters will set minimum standards, enforced by the Fair Work Commission, which labels Uber drivers and other gig economy workers as “employee-like workers”.

Under this provision, the commission will be able to set minimum standards for employee-like workers, which must be adhered to by employers, or they could face penalties.

Minimum standards orders and guidelines can include terms about several matters, including:

• Payment terms
• Deductions
• Insurance

According to a new the Australian Council of Trade Unions (ACTU) analysis, “the Closing Loopholes Bill will set minimum standards for workers on digital labour platforms, including on pay. Paying these workers the equivalent of the minimum wage in their industries would boost their pay by up to $5.39 per hour, or up to $95 a week.”

However, due to the fare rates plummeting, on Uber’s volition, pay increases that were once deemed as a massive boost for gig workers may now be fruitless – a sad outcome for many workers who are doing it tough in a tumultuous economy.

In terms of profit, however, Uber Technologies’ revenue for the 12 months ending 30 June 2024 was $40.06 billion, showing a 14.44 per cent increase year on year.

As frustrations boil over among Uber drivers, many vowed not to return to the drive share platform until fares are increased and working conditions are improved. For consumers, with more drivers dropping out, prices will soar as the workforce becomes stretched.