Fedex “gig-style” proposal for owner drivers threatens job security

In 2021, thousands of FedEx workers were forced to take days of national protected industrial action for their job security.

Workers were under significant threats from outsourcing to cheaper labour hire.

Now, FedEx is attempting a “back-door” approach to renege on those commitments by engaging an underclass of owner drivers on substandard piece rates.

What it would mean for workers

Under the proposal new owner drivers would face rates and conditions far inferior to current workers.

• Drivers would be paid a flat rate of $120 plus a piece rate of just $2.50 per parcel
• They’d be expected to deliver an astronomical 93 parcels per 10-hour shift, roughly 1 every 6 minutes
• Drivers would also lose rights like sick leave and superannuation, which FedEx claims would be covered under the piece rates along with cost recovery for fuel, vehicle maintenance etc.
• Under the system drivers would lose all rights to collective bargaining, with FedEx intending to negotiate piece rates individually with drivers every six months

The Amazon Effect in practice

FedEx’s dangerous proposal would heap more pressure on drivers already stretched to the limit, and undermine the job security protections workers won just last year. The plan is the Amazon Effect in practice, driven by Amazon’s exploitative model that smashes wages and conditions.

If FedEx goes ahead with this, other major transport companies will be forced to do the same just to stay in the game.

Federal Parliament must pass transport reform to set minimum, safe standards in transport.

 Recently hundreds of drivers joined convoys around Australia to call on Federal Parliament to urgently vote up the reform before more companies join FedEx’ in taking the gig economy low road.

We’re fighting hard for these reforms because we know they will save lives.