Amazon boss Jeff Bezos dealt huge blow over NSW delivery riders

A huge decision in NSW will have a massive impact on Amazon operations and could have major implications right around the world.

Delivery drivers across NSW will soon receive a major pay rise after a landmark ruling that could have global implications.

Some drivers will get wage rises of up to 45 per cent over the next three years.

The NSW Industrial Relations Commission handed down its decision on Friday.

It will also have a significant impact on Jeff Bezos’ operations, because Amazon Flex drivers will now be entitled to a minimum pay rate.

That aspect will come as a surprise to Amazon, which wasn’t party to the application.

“The impact of this decision will be felt around the world,” Transport Workers’ Union national secretary Michael Kaine said.

Delivery riders are in for a big payday as well. Picture: NCA NewsWire / Damian Shaw

“Gig behemoths are on notice – this is what happens when workers call out these dangerous bottom feeders and fight together for a fair day’s pay.”

The TWU successfully applied for drivers of small delivery vehicles – such as cars and mini-vans – to be covered by minimum pay.

Owner-drivers of vehicles that can carry between 1.5 and 3 tonnes of goods will be entitled to $43.74 an hour from March 1.

Rates for those workers had not been adjusted in 15 years, but operating costs had significantly increased, leading some workers to earn less than minimum wage after costs.

The inclusion of minimum rates for smaller vehicles means Amazon Flex drivers will be entitled to $27.83 hourly rates.

The TWU said the decision would put ‘gig behemoths’ like Amazon on notice. Picture: Nicholas Kamm / AFP

That rate will increase to $37.80 by July 2025.

The minimum pay requirement is a “world first” for Amazon, but won’t immediately raise the pay for drivers.

“We are pleased to continue offering Amazon Flex delivery partners competitive pay as well as the flexibility to work when it suits them,” an Amazon spokeswoman said.

“Amazon Flex delivery partners in NSW driving a sedan earn an average of over $128 for a four hour block, which already exceeds the new rate that will come into effect from 1 March.”

Bicycle delivery riders will see the biggest pay increase.

By 2025, the minimum rate will increase from $19.44 to $31.32 – a 61 per cent increase.

“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,” Mr Kaine said.

“Today’s win confirms that it’s entirely possible for all workers to have access to enforceable rights and protections, regardless of their employment status.”

NSW Labor MP Daniel Mookhey, who has been scrutinising the state’s gig economy through a parliamentary inquiry, welcomed the IRC’s decision.

“This decision will significantly improve the lives of thousands of hardworking owner-drivers and their families, who for more than a decade have seen soaring costs erode their standard of living,” Mr Mookhey said.

Originally published as Amazon boss Jeff Bezos dealt huge blow over NSW delivery riders