Read The Times Australia

Daily Bulletin

Did somebody say workers' rights? Three big questions about Menulog's employment plan

  • Written by: Tom Barratt, Lecturer, Centre for Work + Wellbeing, Edith Cowan University

Menulog, Australia’s second-largest food ordering and delivery platform, has declared it will break with the standard “gig platform” business model and engage some of its couriers as employees, not independent contractors.

“We owe it to our couriers,” Menulog’s managing director Morten Belling told the Senate Select Committee inquiry into job security this week. The inquiry is investigating the scope of insecure or precarious employment in Australia.

The Transport Workers’ Union says Menulog’s move is a “watershed moment for the gig economy”. By committing to pay couriers a minimum wage and superannuation, it is going further than its competitors such as UberEats and Deliveroo.

But let’s not get too excited yet.

What Menulog has announced is just a pilot program, offering employment to some couriers in Sydney’s CBD. How much of an overall benefit it makes even to those workers will depend on the details.

Work can still be insecure and poorly paid even when a worker is “employed”. Just ask many casual employees in the hospitality, horticulture and retail sectors.

Accepting greater responsibility

To give Menulog credit, the company isn’t legally obliged to make this change.

The prevailing independent contractor model, paying workers “piece” rates with no benefits such as superannuation and paid leave, is controversial yet thus far legal – even though it means many earn less than the minimum wage.

In engaging couriers as employees, Menulog is accepting greater responsibility for their welfare. Things like insurance and workers compensation become straightforward. As contractors, already lowly paid workers are often responsible for their own insurance.

Read more: Workers' compensation doesn't cover gig workers – here's a way to protect them

These are vitally important issues given the risks involved in courier work. Last year five delivery riders were killed in traffic accidents. Though none were Menulog couriers, Belling mentioned this as a key driver for the company’s change.

The shift to an employment model should also result in greater income certainty for workers. But to what extent they will be better off depends on at least three important details.

A rally in support of food delivery riders in Sydney in March 2018 A rally in support of food delivery riders in Sydney in March 2018. Past surveys have found 75% of riders have earned less than minimum rates through platform work. Dan Himbrechts/AAP

1. What’s the award?

The first question is what modern award – the document that sets minimum terms and conditions of employment within a specific industry or occupation – will couriers be employed under.

According to Menulog there are “a number of challenges” in moving to an employment model, with Australia’s award system cited as a potential barrier.

The award now covering couriers is the Road Transport and Distribution Award 2020. Menulog has indicated it wants delivery workers to be covered by a new award, and intends to consult with the union to create it.

It hasn’t spelt out what the specific “challenges” in the existing award are – employer groups often talk in generalities about a lack of flexibility – but it may include removing minimum engagement periods.

Under the existing award – as with others – a casual employee must be paid for a minimum four-hour shift. Minimum engagement periods are important for giving workers some certainty as to how much they will earn when asked to work. In contrast, an independent contractor can be engaged for a one-off delivery that may only be for a few minutes to earn a few dollars.

The award also stipulates penalty rates and allowances for unsociable hours or days (such as public holidays).

If Menulog’s move involves eroding fundamental award principles about minimum hours and payments, its couriers could find “employment” isn’t much better their current conditions.

2. Does every worker get to be an employee?

Even given the limited scope of the trial (Menulog operates throughout Australia and New Zealand, while its parent company Just Eat Takeaway operates in 23 countries) it is unclear if the platform plans to make all couriers working in Sydney’s CBD employees.

Did somebody say workers' rights? Three big questions about Menulog's employment plan Menulog’s parent company Just Eat Takeaway has operations in 21 countries and partnerships in two others (Brazil and Colombia). www.justeattakeaway.com

Or will it end up with a two-tier system, where some couriers are engaged as employees and other remain contractors? If this is the case, it could make contract work even more precarious.

It’s important to know who gets to be an employee and why. This should be transparent. Platform companies are notorious for their “black-box” algorithmic management. Their algorithms now effectively make workers compete with each other for gigs. A system that makes them compete for the chance to be rewarded with the badge of “employee” is hardly much better.

Read more: Algorithms workers can't see are increasingly pulling the management strings

3. How to deal with multi-apping?

It is a feature of the gig economy that couriers often work on multiple apps at the same time to try and win more gigs – a practice known as “multi-apping”.

If they become Menulog employees, will they have to forego this right? Will they be allowed to earn money through other platforms during times when they’re not employed?

Again, these details will need to be worked out. The answer will have ramifications across the food delivery industry.

Finally, are customers willing to pay?

Menulog’s announcement has been welcomed by unions, including the Australian Council of Trade Unions’ head Sally McManus. But the details that remain unclear are fundamentally important.

This trial may mark a major shift in this part of the “gig economy”. The head of Just Eat Takeaway, Jitse Groen, said last year he would rather his workers get more protections and benefits. Belling told the Senate inquiry that treating couriers as employees “may cost us more, but it’s the right thing to do”.

But how much more Menulog is prepared to pay also depends on how much more customers are willing to pay.

It is important for the gig economy as a whole that Menulog get this right in Australia. That will depend on the answers to the above questions.

Authors: Tom Barratt, Lecturer, Centre for Work + Wellbeing, Edith Cowan University

Read more https://theconversation.com/did-somebody-say-workers-rights-three-big-questions-about-menulogs-employment-plan-158942

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Best Jewellers in Brisbane to Discover for Custom Engagement Rings

Choosing a jeweller for a custom engagement ring is an important decision. The process involves mo...

How fast can you charge an EV at home? Charger speeds explained

Ask new EV owners what worried them before buying and charging time comes up early. A petrol tank fi...

Crossing Several European Borders? How to Keep Your Phone Working the Whole Trip

A multi-country trip through Europe can cross three borders in a day. Take the coach from Split to...

Behind the Scenes: How Medicines Stay Safe Before They Reach Your Pharmacy

You pick up a prescription, glance at the label and pop the box in your bag without a second thought...

How Local Organisations Can Get Their Story Told in the Media

The local junior footy club raises enough money to send a team interstate. A community garden double...

Understanding the Compassionate Flexibility Built Into Religious Fasting Traditions

You've probably been aware of religious fasting as part of the cultural landscape, whether through...

The Rise of Australian-Made Spirits and What It Means for Local Drinkers

Not so long ago, ordering a local gin at the pub would earn you a blank look. Bottle shop shelves we...

How NDIS Providers Can Free Up Space and Run a Tighter Operation

Walk into the office of almost any growing NDIS provider and you will probably find a corner that ha...

Small Acts, Big Impact: How Australians Can Give Back to Their Communities

There is a common belief that giving back requires either a lot of money or a lot of time. Big chequ...