DoorDash fears food delivery prices could triple under gig worker laws

The government’s bill gives broad powers to the Fair Work Commission to set minimum pay and conditions for “employee like” gig workers and refers to comparable awards as part of the commission’s considerations.

However, it includes a safeguard that the conditions cannot change drivers’ mode of engagement, which Workplace Relations Minister Tony Burke says preserves workers’ flexibility to choose which gigs to accept and rules out rosters or overtime.

DoorDash argues this guardrail is not specific enough to prevent unintended consequences, claiming the “the sky is effectively the limit” on conditions, and they could even go beyond what is in awards.

Its submission says requirements to compare with employee conditions will “likely result in a minimum rate of pay which becomes so high (because the FWC is required to account for every condition a hypothetical ‘comparable’ employee is entitled to receive) that platforms won’t be able to continue to operate without implementing significant operational changes”.

“There will likely be such significant increases to the operating costs of platforms, this will result in unsustainable flow-on effects for businesses and consumers,” it said.

Assuming the award’s minimum pay, super, penalty rates, allowances such as fuel and a per kilometre vehicle cost, it predicted a rise in delivery costs of more than 210 per cent based on full-time/part-time conditions and 260 per cent for casual conditions.

DoorDash argued in its submission that FWC should only be allowed to set minimum pay, insurance, portable leave and payment times.

All references to employment should be removed and penalty rates, online time and minimum engagements prohibited.

Transport Workers Union national assistant secretary Nick McIntosh said the gig reforms were a sophisticated approach that had the broad support of workers and gig companies alike and estimates about particular conditions were speculation.

“The current debate is circling around the specifics of what standards would look like, which will ultimately be determined by the FWC after it hears from all relevant parties,” he said.

“The objective of this reform is clear: to make transport safe, fair and viable. It’s a balancing act that the FWC is adept at tackling.”

However, he said that “what’s clear as day is that transport gig workers are being chronically underpaid, they’re under constant threat of sudden job loss through deactivation, they’re being injured and even killed”.

Mr Burke has previously said the laws for “employee like” gig workers would result in a “modest pass through” in prices but claimed that was a small price to pay to ensure standards for the lowest paid.