‘World-first’ deal to give delivery drivers better pay

November 25, 2025 16:21 | News

Delivery worker Utsav Bhattarai has spent the past five years working under “really intense” conditions.

“You’re sick? You’ve got to go to work,” he said.

“There’s a hailstorm? You’ve got to go to work.

“Just one more order, one more hour.”

The striking of a landmark wage deal between Uber Eats, DoorDash and the Transport Workers Union is an emotional moment.

Gig workers, politicians and union leaders
Gig workers, politicians and union leaders have hailed the wage deal. (Mick Tsikas/AAP PHOTOS)

Mr Bhattarai is confident steadier incomes will vastly improve the lives of delivery staff.

Under the draft agreement, which must still be approved by the Fair Work Commission, delivery drivers will be paid a minimum $32 an hour from July 2026, while riders will get at least $31.30.

“This win is for every worker who can now take sick leave, who can now work 40, 50 hours and stay home, spend some time with their families,” Mr Bhattarai said.

“We’re not talking about a decent pay, we’re talking about minimum wage.”

Drivers and riders will also get access to accident insurance and more transparency around pay and dispute resolution processes.

Unions have long argued gig economy workers have been exploited by rideshare apps, with limited entitlements enjoyed by the rest of the workforce, such as leave, injury insurance and union representation. 

Delivery drivers face variable income streams and up until now had no safeguards ensuring they are paid above minimum wage.

A delivery rider (file image)
The deal sets a minimum wage for delivery workers and ensures a range of conditions. (Daniel Pockett/AAP PHOTOS)

The union’s national secretary Michael Kaine said the deal was a world-first.

“It is such a reward for these workers who have fought since 2017 to change their lives,” he told reporters in Canberra on Tuesday.

“Gig workers are the silent heroes of our economy. They’ve literally put their bodies on the line.”

Delivery companies have indicated the changes will have little increase on their prices, arguing most workers already receive those rates of pay and the changes are designed to stop the small number who don’t from falling through the cracks.

“Uber Eats has long supported sensible and modern reforms that strengthen protections and benefits for delivery people, while maintaining the flexibility that is central to gig work,” Uber Eats Australia and New Zealand managing director Ed Kitchen said.

“We believe fair standards and flexibility should not be mutually exclusive. 

“They are both essential to ensuring gig work continues to meet the expectations of Australians and reflects the important role delivery people play in their communities.”

Amanda Rishworth and Michael Kaine
Employment Minister Amanda Rishworth and TWU boss Michael Kaine believe the deal will change lives. (Mick Tsikas/AAP PHOTOS)

Workplace Relations Minister Amanda Rishworth welcomed the deal, negotiated under Labor’s gig economy reforms.

“This is what it looks like when there are co-operative workplaces where workers and companies and their unions sit down to discuss what is really important,” she told reporters in Canberra.

AAP News

Australian Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national newswire and has been delivering accurate, reliable and fast news content to the media industry, government and corporate sector for 85 years. We keep Australia informed.

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