The Guardian reports Uber’s warning that Australians may pay up to 85% more to have a meal delivered if gig economy workers are treated as employees under proposed workplace legislation is an admission that delivery rider workers are being woefully underpaid, experts have said. Uber supports the Fair Work Commission setting minimum standards but made the claim about price rises in its submission to a Senate inquiry into the legislation, to demonstrate what it said were ‘significant concerns’ about comparing pay and conditions of traditional employees when setting standards for gig workers.

Fiona Macdonald, an expert in industrial relations at the Australia Institute, said the figures put forward by Uber showed just how much workers were being underpaid. The Transport Workers’ Union’s national assistant secretary, Nick McIntosh said the figures put forward by the company, which also forecast Australians could pay 60% more to catch an Uber, missed the point of the legislation because it proposed a new standard known as ‘employee-like’ should be applied to gig economy workers, not that they should be treated exactly as employees. McIntosh said it meant any gig worker should be able to have minimum standards. “Then the Fair Work Commission can set what they consider to be appropriate minimum standards after consulting with everybody involved,” he said.

In its submission, Uber argued that the government’s bill, when considering standards that should apply to gig workers, made numerous references to employees’ pay and conditions that could influence the commission to ‘mirror’ gig worker minimum standards on employee pay and conditions.

A spokesperson for Uber said, “Our submission includes modelling on the potential impact of the bill as it’s currently written. The bill leaves open questions around what standards the FWC may or may not apply to gig workers – for example, penalty rates.

“Without further clarity, there could be unintended consequences for consumers, workers and businesses. These consequences can be avoided with some practical amendments that more clearly address the unique nature of platform work,” the spokesperson added.