Amazon Flex Wollongong
Amazon Flex Wollongong – Amazon Flex drivers in NSW have won the right to a minimum wage, which the Transport Workers’ Union says is a world first. Photo: Artur Vidak/NurPhoto/REKS/Shutterstock
The Transport Workers Union says the decision to require Amazon Flex to pay delivery drivers the minimum wage is a world first
Amazon Flex Wollongong
The New South Wales Industrial Relations Board has given Amazon drivers a mandatory minimum wage in what is believed to be a world first.
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Starting March 1, Amazon Flex drivers will receive a minimum wage that starts at $27.83 an hour and increases to $37.80 by July 1, 2025, following a successful bid by the transportation workers union to review the award with the commission.
TVU State Secretary Michael Kane said a successful application would see some drivers receive up to 45 per cent pay. The union said it was the first time in 15 years that rates had increased for owners and contractors.
But an Amazon spokeswoman said the claim was “another attempt to grab headlines based on untrue claims” and that its drivers were paid on average more than the new price.
“They created a model that deliberately classified workers as independent contractors so they could try to keep them outside the protection system,” Kane said.
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Amazon launched Flex in Australia in 2020, promoting its package delivery service as a way for people to earn extra income.
About 2,000 contractors have signed up for the service, all of which use their own cars and are cost-effective, such as gas. Many say it is impossible to survive.
One Amazon driver, who spoke on condition of anonymity, said drivers are currently paid a flat rate for work done and must submit overtime claims.
On Facebook, drivers share screenshots of the proposed block. Recent reports suggest Amazon is offering drivers $87 to $90 for three hours of work.
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One of the “rides” in the proposal requires a driver to cross the city and deliver 39 packages to 33 stations in four hours – the first is 50 minutes.
To claim overtime pay, drivers are told to contact an international call center that verifies their application.
“You have to call Amazon Flex support and tell them you have overtime, they say ‘Oh, we’ll pay it,’ and then you have to send an email and after two or three weeks they respond and usually say they don’t qualify,” the driver said.
“We conduct regular wage reconciliations across Australia to ensure that delivery partners are paid for overtime (over and above scheduled time) when delivering.
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“On average, delivery partners in New South Wales who drive limousines earn more than $128 for a four-hour drive, which is higher than the new rates that will come into effect on March 1.”
Another driver, known only as Chris, who spoke after the sentencing, said at one point he was living in his van because he didn’t have enough money to rent a house.
“I decided I was going to stick it out and the only way I could do it and keep my head was to live in my van for two years,” he said.
“It’s a personal thing today, so I’m emotional … and it shuts me down a little bit.” A photo of a heavily loaded truck on the Amazon Flex site in Sydney on Friday, provided by the Transport Workers Union. Photo: Sent
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An Amazon warehouse in Sydney’s west has called on police to hire two union officials to investigate allegations that workers’ cars were overcrowded during Black Friday sales.
The Transportation Workers Union sent three police officers to Amazon Flex’s Bella Vista package depot on Friday, two of whom were assigned to the scene to investigate reports of a dangerously overloaded truck. It is believed that the workers are under pressure to accept the package to avoid disciplinary action or dismissal.
Amazon Flex is a low-cost delivery service similar to Uber Eats where drivers provide their own cars.
TVU said officials were initially allowed to stay in the venue, but management later Call the police to get them out. The union said the officials were allowed to stay because they had the legal right to enter.
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An Amazon spokesperson told the Guardian that one officer met the right of entry requirements, but then two others “failed to meet the appropriate entry criteria for the right to access the site” and then refused when asked to leave.
“Over the past year we have facilitated dozens of authorized union visits to our facilities across Australia by several unions,” the spokesman said.
Regarding allegations of overpacking, a spokesman said: “We don’t want anyone driving on the road with an obstructed view.
“If a driver is concerned about the packaging blocking his view, he can ask the delivery station staff to help him pack efficiently.”
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“In the rare event that the package will not fit, delivery station staff will remove as many packages as necessary to provide the driver with a view and a safe ride.” There is no penalty if the sender raises concerns that will cause the packet to be removed for that block.”
TVU national secretary Michael Kane said it was a shame for the company to call the police about union officials on site.
“On Black Friday — a day when shipping workers face extreme pressure — Amazon confirmed what we’ve always known: making money … is more important to them than protecting workers,” he said.
“This form of anti-worker behavior will only cause more traffic deaths and make our roads unsafe for workers and communities.”
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Amazon previously called police to the company’s Moore Park site in Sydney when officers visited in May 2020.
The commission heard that Amazon Flex drivers were paid a minimum wage of $108 for a four-hour block, but said the average price paid to drivers in October this year was $125 per four-hour block.
The base rate remains around $27 an hour, excluding wages and expenses, and Labor MPs have questioned why it is lower than the minimum rate set for delivery drivers in NSW and Victoria.
In response to questions about the payment notice published this week, Amazon said it was “incorrect” to compare the rate to the standard $40.71 set in Victoria’s payment rate.
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“Many of the assumptions underlying the $40.71 figure do not apply to Amazon Flex delivery partners,” Amazon said. “For example, the hourly rate of $40.71 is based on a rough figure for a full-time truck driver operating a vehicle with a current capital value of $32,317 7.6 hours per day, 220 days per year.”
“These numbers do not reflect the additional income potential that Amazon Flex partners deliver an average of three blocks per week and drive limousines to earn additional income on top of their other duties.”
The company said it would like to see “a simple and consistent national framework for owner-drivers, and we welcome the opportunity to work with state and federal governments on a nationally consistent regulatory framework.”
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