GOVERNMENT MUST ACT OVER FOOD DELIVERY ‘SHAM CONTRACTING’

Senior managers at Foodora have been revealed in the media to be discussing rider contracts as “concerning from a legal perspective”. A legal authority could consider them “sham contracts” which “could be devastating for us” because of penalties of up to $32,000 per contract, says the email.

“Foodora have been caught out. They know their contracts are illegal and they know the riders they are engaging should be given the rights and protections they deserve. They have been exposed as discussing ways of making their contracts ‘water tight’ to prevent any rider claiming what they deserve. This is clearly an example of companies gaming the system at the expense of young workers and getting away with it. What more evidence does the Federal Government need to change the rules?” said TWU National Secretary Tony Sheldon.

A survey has shown three out of four delivery riders were getting paid below the minimum award rate. Riders also revealed they can work shifts set by the companies and receive no payment at all if there are no deliveries. Almost 50% of riders said they or someone they know has been injured on the job.

Delivery riders have held protests in Melbourne and Sydney in recent months to highlight their lack of fair rates and protections. Several delivery riders have taken cases to the Fair Work Commission after being unfairly sacked.

“The on-demand economy is a tired example of old-fashioned exploitation at play in modern Australia. It doesn’t involve “gig” or “sharing” work but on-demand piece work which was abolished in Australia in the early 1900s. By not regulating this industry, our Government is holding to ransom our children’s and grandchildren’s futures for the benefit of tech billionaires who don’t even pay adequate tax in this country,” Sheldon added.