Almost 1,700 Foodora delivery riders are set to receive $2.3 million in back-pay from the company, after it was forced to admit it underpaid wages and refused superannuation.
The payout was offered by Foodora’s parent company, Delivery Hero, and was beaten down from $3 million by administrators’ costs. Riders will receive around 29 cents in the dollar for their claims and will also pay tax on the payment.
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While it’s a win for workers, they’re only receiving a portion of their outstanding entitlements, which they claim reached almost $8 million.
According to the Transport Workers Union (TWU), over 3,800 riders failed to make claims, which means the company allegedly got away with over $5 million in wage theft.
TWU reported the biggest known underpayment claim by a single rider was over $120,000.
Tony Sheldon, TWU’s on-demand coordinator, said while it was an important day for workers in the on-demand economy worldwide, the government failed to take a stand against the company in the name of Australian workers.
“The fact that they didn’t get all of their entitlements is an indictment on the Federal Government, which has failed at every step to hold this company and the entire on-demand economy to account over ripping off workers,” he said.
Sheldon said the Government must also be held to account over wage theft that continues daily with other companies like Uber, Deliveroo and Menulog.
“The Government is choosing to side with tech billions in the shiny towers of Silicon Valley, rather than side with hard working people and taxpayers in Australia,” he said.
The pay-out follows Uber drivers’ recent strike over low pay and appalling conditions ahead of the company’s public sale.