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Menulog pivots towards employment model
Menulog says it will move away from the independent contract model towards hourly pay within the next few years in an industry first – a move that has been praised by the unions.
Menulog pivots towards employment model
Menulog says it will move away from the independent contract model towards hourly pay within the next few years in an industry first – a move that has been praised by the unions.
Speaking before a Senate select committee on job security, managing director Morton Bellin said the company is currently conducting an inquiry into workers’ rights and wages.
The company noted that it would work with the Fair Work Commission and the Transport Workers Union (TWU) to create a new modern award, with the current casual worker laws not fit for purpose.
Menulog’s managing director, Morten Belling, said moving to an hourly rate of pay would “eliminate the need for couriers to be multi-apping to the extent we see today” with employees using the one app.
“While we have been compliant for many years running this business, and we still are, we think we’ve got a moral obligation to do more,” Mr Belling said.
Menulog has become the first major food delivery platform to move towards a pay per hour basis, after it was revealed Uber Eats riders make $10.42 an hour during slower work periods.
The company said it will announce a pilot employment model with riders in the Sydney CBD, which will coincide with an analysis of its contractor riders’ to bridge the gap between pay and conditions.
“We owe it to our couriers to help enhance their life standards, and as such, we have begun looking at how we can improve the way we operate and, as part of this, how we can roll out an employee model in Australia,” Mr Belling noted.
TWU national secretary Michael Kaine has welcomed the move and said federal government regulation is critical at this juncture to protect companies doing right by workers.
“This is a watershed moment for the gig economy in Australia. For the first time, a food delivery company has realised the importance of awarding minimum pay and rights to riders and will move towards this model. We congratulate food delivery riders for raising their critical concerns about the deadly pressures of exploitative business models that has led Menulog to focus on improving conditions.
“The TWU has agreed to work with Menulog on this important trial, which will challenge the myth that flexibility and fairness are at odds. Minimum pay and rights for riders will break apart the dependent, exploitative relationship that forces riders to work quickly and dangerously over long hours just to put food on the table,” Mr Kaine concluded.
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