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  • Menulog kicks off Sydney employment model trial

    Menulog has begun its trial of adopting an employment model in the Sydney CBD, with riders provided with the minimum wage, superannuation and safety equipment.

    The Australian gig economy firm announced it intended to move towards a full employment model earlier this year, following growing concerns about workers’ safety and conditions, and has now kicked off its first pilot of this new business model.

    It marks a significant shift from Menulog’s previous business and that of its big rivals in the sector, with tech firms typically classifying delivery riders as independent contractors rather than employees, avoiding having to provide the benefits typically associated with employment.

    Menulog has launched its employment model trial

    As part of the trial, Menulog riders in the Sydney CBD have been provided with a company uniform, safety equipment and a bike, and will receive the minimum wage, superannuation and other benefits.

    The trial marks an important milestone for the gig economy in Australia, and throws the gauntlet down to the likes of Uber and Deliveroo, Transport Workers’ Union national secretary Michael Kaine said.

    “This trial is an important deviation from the deliberate misclassification model introduced by Uber and replicated by tech startups across the world, which was purposefully designed to circumvent industrial laws and exploit workers,” Mr Kaine said.

    “The TWU is excited to see the trial get off the ground. We hope this marks a turning point in what has been a merciless, deadly industry. Menulog is blazing the trail and we look forward to ongoing cooperation to achieve appropriate standards and conditions for food delivery riders.

    “With the right balance, Menulog will find the harmony of fairness and flexibility the likes of Uber and Deliveroo try to deny is possible.”

    Announcing the trial earlier this year, Menulog managing director Morten Belling said it was a “moral obligation” rather than an economic decision, acknowledging that it will be a long journey but the company will look to “bridge the gap” in the meantime.

    “We owe it to our couriers to help enhance their life standards and as such, we have begun looking at how we can improve the way we operate and, as part of this, how we can roll out an employee model in Australia,” Mr Belling said.

    “We believe this plan will help us better do the right thing by our couriers and meet our moral obligations as an Australian-born business and one of Australia’s largest food delivery platforms.”

    The launch of the trial comes just days after a Labor-led Senate Committee labelled conditions for gig economy workers as “not acceptable”, and called for better protections and dispute resolution methods.

    The report found that these workers often work in high-risk and unsafe conditions and are not provided with “sufficient income”.

    The committee called for workers in the gig economy to be paid in a way that “recognises the value of the work they do”, and receive benefits that ensure they are not forced to work when they are sick, along with superannuation.

    “The committee considers that fundamental changes to the structure of on-demand platform work are required to ensure that people are given some certainty in their work, that they are paid fairly, are able to work as safely as possible, and that they have protections for themselves and their families when they are ill, injured or if they are killed at work,” the report said.

    In May the Fair Work Commission ruled that an Australian Deliveroo rider who had been kicked off the platform last year was an “employee” of the company with a right to the minimum wage, superannuation and unfair dismissal protection.

    The post Menulog kicks off Sydney employment model trial appeared first on InnovationAus.

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  • “Moral obligation”: Menulog to employ riders

    Menulog’s announcement that it will move to an “employment model” within years and pay its workers the minimum wage and superannuation has been heralded as a “watershed moment” for the gig economy.

    Menulog executives revealed at a senate inquiry hearing on Monday afternoon that the food delivery company would soon run a pilot program in the Sydney CBD where its delivery riders will be full employees.

    It’s a significant shift away from the independent contractor model that is rife in the gig economy and used by the likes of Uber, UberEats and Deliveroo.

    Deliveroo delivery person on bike
    Pressure is now on the gig economy giants.

    These large gig economy players have continually argued that their workers are independent contractors rather than employees, meaning they don’t have to provide them with benefits such as superannuation or sick leave, or provide the minimum wage.

    Executives from these firms had earlier appeared at the inquiry, claiming any move to provide workers with the minimum wage or other benefits and to make them employers would jeopardise the “flexibility” that they apparently enjoy.

    The move would make Menulog the first gig economy firm in Australia to actually employ its workers.

    Menulog managing director Morten Belling told the inquiry that it would be a long journey to this “employment model”, but the company will be looking to “bridge the gap” in the meantime and provide benefits to its workers.

    He said this move is a “moral obligation” rather than a legal one, and based heavily on improving the safety of delivery riders, placing further pressure on the large tech players in the space.

    “We owe it to our couriers to help enhance their life standards and as such, we have begun looking at how we can improve the way we operate and, as part of this, how we can roll out an employee model in Australia,” Mr Belling said in his opening statement.

    “We believe this plan will help us better do the right thing by our couriers and meet our moral obligations as an Australian-born business and one of Australia’s largest food delivery platforms.”

    Mr Belling said the announcement was made earlier than expected due to the timing of the public hearing and that the overall process could take a few years.

    The plan has been welcomed by the Transport Workers Union (TWU), which has been campaigning for better rights and benefits for those working in the gig economy for several years.

    “This is a watershed moment for the gig economy in Australia. For the first time, a food delivery company has realised the importance of awarding minimum pay and rights to riders and will move towards this model,” TWU national secretary Michael Kaine said.

    “We congratulate food delivery riders for raising their critical concerns about the deadly pressures of exploitative business models that has led to Menulog to focus on improving conditions.”

    The TWU will be working with Menulog on the trial and on an analysis of contractors riders to improve pay and conditions, which the union said will “challenge the myth that flexibility and fairness are at odds”.

    “Minimum pay and rights for riders will break apart the dependent, exploitative relationship that forces riders to work quickly and dangerously over long hours just to put food on the table,” Mr Kaine said.

    “Finally, socially conscious consumers will be able to select a food delivery company that aligns with their values and the protections they know these essential workers deserve.”

    This argument that providing employment benefits is at odds with worker flexibility was a common theme of the testimony of Uber and Deliveroo executives earlier at the hearing, and used as a reason to not provide workers with the minimum wage or other benefits.

    Deliveroo representatives claimed that a minimum hourly rate for riders would be seen as a “maximum” rate by these workers.

    But Menulog said there is a “major caveat” with this plan, saying that it will require a new worker classification to be created sitting between an independent contractor and a casual employee.

    “Ultimately we want to employ couriers. However, the current regulatory framework presents a number of challenges with specific regards to existing modern awards, the lack of flexibility they present and subsequent costs,” Mr Belling said.

    This adds more urgency for the federal government to further regulate the sector, Mr Kaine said.

    “It is vital for the federal government to level the playing field and regulate this industry to protect companies moving to provide essential rights and protections for workers. Menulog must be encouraged to continue along this trajectory rather than put at a competitive disadvantage,” he said.

    The post “Moral obligation”: Menulog to employ riders appeared first on InnovationAus.

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  • Gig economy giants open to some reform

    The largest gig economy companies in Australia have told a senate inquiry they are open to working with the federal government on minimum standards for the sector, but won’t budge on reclassying their workers or guaranteeing them minimum wage.

    Representatives from Uber, UberEats, Deliveroo and Ola appeared at a public hearing for the Senate Select Committee on Job Security on Monday morning, facing questions around the safety of workers in the gig economy, accident insurance, minimum rates of pay and the potential for more regulation.

    The tech firms also railed against state governments going it alone following significant inquiries in NSW and Victoria, arguing that it is a job for the federal government to regulate the sector.

    Each of the ridesharing and food delivery firms admitted that their workers were being paid less than the minimum wage for casual workers.

    The tech giants appeared after the Transport Workers Union (TWU) at the inquiry, with its national secretary Michael Kaine slamming their business models and calling for significant reforms.

    “The cost of the gig economy is simply devastating. Each day workers are stripped of their livelihoods at the whim of an app notification with no redress. Those who are not are subject to dangerous toil with the despair of vainly trying to subsist on less than half the national minimum wage,” Mr Kaine said.

    “We can be a nation which embraces this latest wave of technological change and innovation in a way that is shaped by an unwavering commitment to fairness, equality and community. But our laws must change, and we must act now.”

    While the TWU has called for the establishment of a new tribunal to determine issues such as what type of work is being completed and how much pay and benefits workers are entitled to, the gig economy firms instead said they want to work directly with the federal government to improve conditions in the sector.

    This won’t come at the cost of the flexibility which these companies say their workers enjoy, with each firm railing against proposals to pay all workers the minimum wage and other benefits.

    UberEats
    Gig economy giants are open to some reforms from the federal government

    Executives from Uber and UberEats called on the government to work with them on implementing minimum insurance requirements for gig economy workers across the sector, and also proposed a pool of funds to be used for portable entitlements such as sick leave.

    “We want to sit down with drivers and work out what the right benefits are. We don’t think flexibility should come as a trade-off from protection, we want to enhance the protections in the gig economy,” UberEats general manager Matthew Denman told the senators.

    “We’re really excited to work with the committee and most importantly to listen to drivers and understand what the right benefits are here in Australia to improve the quality of work in the gig economy.”

    He said that such a portable benefits scheme would be an “innovative” way to provide this support.

    The Uber executives admitted that the $21 hourly wage for UberEats riders in Sydney during peak meal-times, reported in an Uber-commissioned report, is still below the minimum casual rate of pay, which is $24.80.

    In its submission to the inquiry, Uber said a national response is needed for the gig economy, rather than state governments going it alone.

    Deliveroo executives appeared following the Uber representatives, with the firm also fighting back against the concept of paying gig economy workers the minimum wage.

    “I don’t believe that regulated rates is what riders want. They see regulated rates as maximum rates. Today a rider can work for multiple platforms, maximise their earnings by picking and choosing the jobs most attractive to them,” Deliveroo Australia CEO Ed McManus told the senators.

    In its submission, Deliveroo said the potential of reclassifying workers from contractors to employees is a “considerable disincentive for platforms who want to protect flexibility for riders and their operating model to provide any such benefits”.

    The company also backed Uber’s calls for the federal government to take a lead in these reforms, despite continually appearing unwilling to do so.

    “We believe any policy proposals around work status must be driven by the federal government to ensure national consistency and clarity. A patchwork of incompatible Commonwealth, state and territory laws and regulations risks creating confusion for riders and unfairness in the system,” the Deliveroo submission said.

    “The creation of state by state-based regulation would create additional burdens and costs to organisations having to implement – and then monitor – new rules.”

    Appearing earlier at the inquiry, smaller ridesharing firm Ola revealed that it had stopped providing its workers with accident insurance in the middle of the COVID-19 pandemic last year. This was a “financial decision” made by the India-based company in June last year, meaning its riders who are injured on the job don’t receive any income support or coverage for medical expenses.

    Ola Australia head of legal Ann Tann was unable to answer questions from senators on how many Ola drivers and riders have been injured on the job. Ms Tann said that Ola workers earn on average $21 per hour, but appeared unable to say whether this was above or below the minimum wage. This figure is below the minimum wage for casual workers.

    Ola Australia also emphasised the “flexibility” it offers workers.

    “We generally would welcome policy positions with better outcomes for drivers and at the same time maintain the level playing field for the industry,” Ms Tann said.

    The post Gig economy giants open to some reform appeared first on InnovationAus.

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  • Uber commissions report that praises Uber

    An Uber-commissioned report providing a glowing picture of the treatment of UberEats workers does not match with previous research and ignores many of the negative aspects associated with work in the gig economy, according to the Transport Workers Union and a leading academic.

    Uber released a report it commissioned, conducted by Accenture, on Tuesday morning, through a drop to The Australian newspaper. The report praised the benefits of working for UberEats and the apparent positive impact the company had during the ongoing COVID-19 pandemic.

    It comes after the deaths of five delivery riders in Australia in the space of two months late last year, intensifying calls for further regulation of the gig economy.

    Sydney skyscraper
    Great stuff: Uber-commissioned report says UberEats is tip-top. Great stuff.

    The new Uber-commissioned report found that the average take home pay for a Sydney UberEats delivery worker during meal times is $21.55, well above the minimum wage.

    It also said that the gig economy company created 59,000 “work opportunities” in Australia last year, and that the much-publicised flexibility of the gig economy is a key selling point.

    The news report said that UberEats delivery workers “typically earned $21.55 an hour” last year but did not include that the statistic relates work in Sydney during peak meal-time hours. That figure also doesn’t take into account the lack of benefits associated with employment, including sick leave, penalty rates and superannuation.

    It also claimed that the report showed that Uber is Australia’s second biggest employer, despite the company strenuously denying around the world that any of its drivers and riders are employees.

    The report’s findings are in stark contrast to a Transport Workers Union (TWU) survey of UberEats delivery drivers and riders last year, which found that these people earn on average $10.42 per hour after expenses, and that nine out of 10 riders are now making less than before the pandemic.

    Uber’s report is an average hourly rate based just on the popular meal-times during the day in Sydney only.

    TWU national secretary Michael Kaine said that if the Uber report is true, the company should start paying that as a regular hourly wage for its workers.

    “If, as Uber claims, its workforce is earning more than the minimum wage, it should have no problem providing an iron-clad, legally-enforceable commitment to paying that amount to every hour worked,” Mr Kaine said.

    “Of course, Uber won’t make that commitment. And that tells you everything you need to know about this company’s conduct and the company-commissioned research making this claim.”

    The working conditions in the gig economy are a “moral failure” requiring reform from politicians, Mr Kaine said.

    “At least five delivery riders have paid for the reckless practices of gig economy companies with their lives in the last year. The TWU stands by its own survey showing food delivery workers earn almost half the minimum wage after expenses,” he said.

    “If a waste disposal company dumps toxic sludge into a river or a property developer bribes a local politician, we rightly see it as a breach of regulation and enforce penalties. But when a gig economy outfit like Uber circumvents the minimum wage, it is somehow celebrated as innovation.

    “In truth the working conditions of the gig economy are a moral failure which require brave reform from politicians and regulators.”

    Speaking on ABC Radio National on Tuesday, University of Technology Sydney senior lecturer Dr Michael Rawling also said that the figures in the Uber-commissioned report don’t match previous research on how much those working in the gig economy are being paid.

    “That’s not consistent with the previous research on the matter, which has put the wage rate as low as $6 to $10 per hour. There have been a number of studies that have found that UberEats riders are earning below the minimum wage,” Dr Rawling said.

    The Uber report also includes nine “key principles” for the company and governments to follow, including to keep workers safe, protect them from injury while working, and encourage them to voice their concerns.

    The report did admit some faults with the company, including around customer support for delivery workers, the dependability of earnings and the firm’s responsiveness to feedback.

    The report was unveiled just days before a NSW government taskforce is expected to release its Industry Action Plan in an effort to improve safety in the sector. But the TWU last week withdrew its support for the taskforce, labelling it an attempt to “divert attention away from the global push for regulation”.

    The union said the final action plan does not address the root causes of rider deaths and injuries, including the pressure to work long hours and while fatigued.

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  • 4 Surprising Things To Know About The Carbon Footprint Of Your Online Food Delivery

    3 Mins Read Online food deliveries were already popular before the pandemic, but now, they’re truly everywhere, with restrictions on restaurants dine-in services and consumers wanting to catch a break from cooking at home (and having to wash up) all the time. In fact, the pandemic has more than doubled business for food delivery apps over the past […]

    The post 4 Surprising Things To Know About The Carbon Footprint Of Your Online Food Delivery appeared first on Green Queen.

    This post was originally published on Green Queen.