An Uber spokesman said the change was part of a regular pricing review. “As ever, our aim is to continue providing quality, safe and affordable rides for Aussie passengers while creating compelling earnings opportunities for drivers,” the spokesman said.
The $US149 billion ($221 billion) company’s dominance in Australia, where it earned more than $1 billion in gross profit on the last reported figures from 2022, was part of the Albanese government’s rationale for regulating the gig economy.
From August 26 the Fair Work Commission will be able to consider applications to give gig economy workers similar protections to regular employees. That could include minimum pay rights they currently lack.
Transport Workers Union national secretary Michael Kaine accused Uber of cutting pay to already “vulnerable and underpaid workers” and urged the industry to collectively back strong minimum standards via the Commission.
“Ride-share drivers with no rights to minimum wage or other entitlements have spent the night wondering how they’re going to pay the bills next month,” Mr Kaine said.
Uber ultimately supported the new laws after initially objecting to several elements that the government watered down. “Our hope is that it will make orders consistent with the intent of this bill,” its Australian bosses Bec Nyst and Dominic Taylor wrote in a February blog post.
Insurance costs for drivers have been rising by double digits, putting pressure on drivers. March inflation figures from the Australian Bureau of Statistics showed a 16.4 per cent annual increase. Higher fuel prices have also hit the sector.
Under the government’s new laws, which were passed as part of its “Closing Loopholes” package of legislation, the commission can make orders for workers deemed “employee-like”. That covers people with little control of their work, limited bargaining power and who are paid at or less than prevailing rates for direct staff.
The commission will then be able to make orders that set things such as payment terms and insurance, but other key areas were taken out of the bill to ensure gig workers’ flexibility was not affected.