'Dealing with a ghost': Victoria prepares to exorcise the gig economy
The Victorian government is considering legislating to protect ride-share drivers, food delivery riders and thousands of other workers in the growing gig economy, despite industrial relations laws falling under federal jurisdiction.
The state’s inquiry into the sector has received nearly 100 submissions, raising concerns about the conduct of platforms like Deliveroo, Uber Eats and Uber with one worker complaining that trying to engage with the online platforms was like "dealing with a ghost".
The Transport Workers Union says its research indicates three-quarters of gig economy workers were being paid less than the minimum rate for casual workers and State Treasurer and Industrial Relations Minister Tim Pallas says the government is worried by the initial responses to the inquiry.
But Uber, one of the gig economy's biggest players, has told the inquiry that it provided opportunities for flexible work for tens of thousands of Victorians, some of whom might struggle in the traditional job market.
Victoria launched its inquiry into the on-demand workforce in December 2018, recruiting the former Fair Work Ombudsman Natalie James to lead the effort, and says the inquiry will not be wrapped-up until the end of 2019.
The state is limited in its powers to take action for change in the sector, with industrial relations falling into the federal jurisdiction, but Mr Pallas said it was still possible for the state to intervene to better protect riders and drivers.
He said if the workers were not defined as employees "then the state does have options available to it in order to look at what greater protections can be put in place".
The Treasurer said he did not want to pre-judge the ultimate outcome of the inquiry.
"But the insecurity, the lack of accountability and the high levels of vulnerability of these workers basically do say that there is more that the state can do in this space," he said.
Mr Pallas said the inquiry would recognise the value of the gig economy, and the convenience it offered consumers, but needed to ensure adequate protection was in place for the workers.
"As a government we do need to be alert to the changing nature of work," he said.
"We need to make sure that the workforce and the community are well protected."
Ms James said many submissions supported the services because they allowed workers to "access the labour market" where they might otherwise have struggled to get traditional jobs.
But submissions also showed many of the workers were vulnerable, she said.
"One worker who made a submission to the inquiry talked about wanting to raise some issues with their platform and said it was like dealing with a ghost."
She said another worker was cut off from their employment after receiving a customer complaint they felt was not legitimate.
Josh Klooger, 29, started riding for Foodora in February 2016 and finished there two years later. Initially he was paid about $25 an hour, he said.
"But as other companies came and the market grew, the newer drivers were getting paid less and less until it got to a point where I just had to speak up about it," he said.
Mr Klooger said Foodora ceased his working arrangement after he spoke out. He took legal action against the company, which will have to pay six months in lost wages.
Foodora, which no longer operates in Australia, owes Mr Klooger $29,000.
He said delivery riders should be made employees and that workers were often injured on the job but received no support.
In its submission to the inquiry, Uber says more than 30,000 people in Victoria were using the platform to earn money as drivers or riders.
"Some use Uber to earn on the side, or save up for a holiday, while others are logging on more regularly to support their families," the company’s inquiry submission said.
"Uber can also be a powerful tool to support people in transition between jobs or an earning option for people who have traditionally struggled to find work."
Uber cited internal figures that showed more than 90 per cent of drivers and delivery "partners" were attracted to the flexibility the platforms provided.
It said drivers and riders were self-employed so they were free to earn money elsewhere, including in competing platforms.