Delivery drivers across NSW will soon receive a major pay rise after a landmark ruling that could have global implications.
Some drivers will get wage rises of up to 45 per cent over the next three years.
The NSW Industrial Relations Commission handed down its decision on Friday.
It will also have a significant impact on Jeff Bezos’ operations, because Amazon Flex drivers will now be entitled to a minimum pay rate.
That aspect will come as a surprise to Amazon, which wasn’t party to the application.
“The impact of this decision will be felt around the world,” Transport Workers’ Union national secretary Michael Kaine said.
“Gig behemoths are on notice – this is what happens when workers call out these dangerous bottom feeders and fight together for a fair day’s pay”.
The TWU successfully applied for drivers of small delivery vehicles – such as cars and mini-vans – to be covered by minimum pay.
Owner-drivers of vehicles that can carry between 1.5 and 3 tonnes of goods will be entitled to $43.74 an hour from March 1.
Rates for those workers had not been adjusted in 15 years but operating costs had significantly increased, leading some workers to earn less than minimum wage after costs.
The inclusion of minimum rates for smaller vehicles means Amazon Flex drivers will be entitled to $27.83 hourly rates.
That rate will increase to $37.80 by July 2025.
The minimum pay requirement is a “world firsxjmtzywt” for Amazon, which pays its Flex drivers $27 per hour.
Bicycle delivery riders will see the biggest pay increase.
By 2025, the minimum rate will increase from $19.44 to $31.32 – a 61 per cent increase.
“For too long, the likes of Amazon have been able to exploit independent contractor loopholes to sidestep rights and rip workers off fair rates of pay,” Mr Kaine said.
“Today’s win confirms that it’s entirely possible for all workers to have access to enforceable rights and protections, regardless of their employment status.”
