Owner-drivers of smaller vehicles in New South Wales, Australia have been awarded an enforceable minimum rate of pay. This includes Amazon Flex drivers, in what the Transport Workers’ Union says is the world’s first enforceable rates and protections for the drivers.

The New South Wales Industrial Relations Commission made the decision as a result of industry-wide consultation led by the Transport Workers’ Union and involving industry groups ARTIO, Ai Group and the NSW Business Chamber, as well as major transport companies such as FedEx, Global Express and Toll.

The decision will see owner-drivers of vans with a carrying capacity between 1.5 and 3 tonnes entitled to an enforceable rate of AUD 43.74 (USD 31.59) an hour, phased in over three years from 1 March.

The determination also includes Amazon Flex drivers, who will for the first time be entitled to a enforceable rate of AUD 37.80 (USD 27.31) to be phased in over the next three years.  Amazon has previously noted its drivers are covered by the General Carriers Contract Determination. Under the regulatory instrument, Flex drivers will be the first in the world to enjoy enforceable rates of pay along with rights to dispute resolution, union representation and collective bargaining, according to the Union.

TWU New South Wales/Queensland Secretary Richard Olsen said that the decision was a long-time coming, and would see significant pay rises for couriers who had gone 15 years without.

“The minimum pay rate for a courier using their own van was set at AUD 28 (USD 20.23) almost 15 years ago. Since then, their operating costs have skyrocketed but their pay hasn’t changed, leaving some drivers earning below minimum wage after costs,” Olsen said.

Olsen added that the decision “will be welcome relief to those drivers – an increase of more than 40% over the next 3 years, to finally catch them up to where they should be after 15 years of stagnant pay.”

TWU National Secretary Michael Kaine said NSW was the first jurisdiction in the world to mandate enforceable rates for Amazon Flex drivers.

“For too long, the likes of Amazon have been able to exploit independent contractor loopholes to sidestep rights and rip workers off fair rates of pay,” Kaine said. “While this outcome is incredible for drivers in parts of New South Wales, only Federal regulation will end a national crisis.”

A spokesperson for Amazon told The Guardian that the Union’s claim of being the first pay rise in 15 years was “another attempt to grab headlines based on claims that are not true” and that its drivers were on average paid more than the new rates.

Amazon was not involved in the proceedings, which did not make any findings about their current practices.

Amazon launched Flex in Australia in 2020 and promoted the parcel delivery service as a way for people to make extra money.