Controversy surrounds the new proposal for regulating rider employment put forth by the Australian minister. Minimum compensation and improved road safety are in the works, but there are also potential industry challenges and price hikes for users as inflation affects purchasing power.
The news
The issue of rider rights isn't exclusive to Italy, as Australian Minister of Labor Tony Burke has finally decided to take action. He believes that the current legislation is lacking due to the absence of a legal definition for gig work, a gap that authorities aim to fill soon. The result has been widespread exploitation and, tragically, the deaths of 13 riders on Australian roads in recent years.
"The reason we lack minimum standards is this: currently, if you approach the labor commission, the first thing they ask is whether you're an employee. If you are, you enjoy a range of rights. If you're not, all these rights fall off a cliff. What we want to do is turn that cliff into a ramp." This will mean paying a small extra fee for the delivery of your pizza in exchange for greater safety for the riders who navigate the roads to get it to your door. "So it seems like a small price to pay. Underpaying is cheaper, but slavery is even cheaper," he quipped.
The labor commission will now try to classify each individual worker based on whether they work for a platform and are "virtually an employee," even though they earn lower amounts and have less control over their performance compared to regular employees. This will particularly affect well-known delivery apps like Uber, not social platforms that are more akin to forums for people seeking gigs. In the former case, a series of rules will be put in place, including minimum performance payments and related timeframes. It's also a way to curb cutthroat competition from new apps entering the market and aggravating exploitation practices.
Uber's response has been positive, both regarding minimum compensation and mandatory insurance, although they have cautioned about the risk of incorrect implementation potentially harming the industry, burdened by excessive costs, and ultimately hurting the workers themselves. Others have emphasized that the new measures may burden consumers, whose purchasing power is already eroded by inflation. This is especially concerning because it's unclear whether these regulations will be limited to food delivery or extend to other areas, such as caregiving, a particularly sensitive issue for many citizens.
