Consumers could end up paying substantially more for rideshare and delivery services, Uber has warned, if penalty rates and other entitlements are extended to gig workers under the federal government’s workplace reforms.
Modelling by the rideshare platform suggests consumers could be forking out roughly 55 per cent more for trips and 65 per cent extra for delivery services without more clearly defined regulatory boundaries.
Evenings, weekends and public holidays would be even more expensive, with the price hikes expected to flow through to fewer orders from restaurants and cafes.
The modelling is based on a scenario where drivers and delivery workers are paid base rates of pay, penalty rates, expense reimbursement and compulsory super.
The company has been broadly supportive of the federal government’s push for better protections for workers but wants to preserve the flexibility of the work, such as control over when they work and what trips they accept.
Under Labor’s gig worker changes, which fall under its broader workplace reforms, "employee-like" workers using digital labour platforms will get a separate classification from contractors and employees and be subject to their own unique set of protections.
The purpose of the new category was to protect the flexible nature of the work while also providing minimum standards, limiting regulatory options to terms such as pay and insurance.
In a submission to a Senate inquiry into the workplace changes, Uber warned the existing wording essentially granted the industrial umpire “non-exhaustive” powers to regulate the new category, leaving the door open to terms such as penalty rates, super, meal breaks, loadings and leave allowances.
The company called for a definitive list of terms that can be included for employee-like orders to avoid “unintended consequences and extensive Fair Work Commission proceedings”.
An Uber spokesperson said it was still committed to working collaboratively with the government on the “once-in-a-generation reforms”.
“While our submission outlines some potential impacts of the bill as it is written, we believe these can all be avoided with some practical amendments that more clearly address the unique qualities of platform work,” the spokesperson said.
The government’s protections for gig workers are intended to stop them from relying on tips to get by.
The bill, introduced to parliament last month, also cracks down on the use of labour hire workers to undercut the rate of pay agreed for employees, criminalises wage theft, and creates a pathway for casuals to become permanent.
Business groups and the opposition have been highly critical of the bill, and there have been calls to split out the less controversial parts so they can be fast-tracked.
The senate inquiry is due to report on the bill on February 1.
