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Uber And Australian Transport Workers Union Agree On Deal For Minimum Pay For Workers

Australia's main transport union and Uber agreed on a minimum wage stating they would "set minimum and transparent enforceable earnings and benefits/conditions for platform workers".

Uber Technologies Inc. and Australia's main transport union agreed on Tuesday to enforce a minimum wage for drivers on the ride-share app. 

The move will ensure the trade union can oversee disputes that result in drivers in the so-called "gig economy" having their accounts shut off, and protect drivers' rights to organise with a "collective voice", the statement said.

Though the changes are largely symbolic as opposed to financial, they reflect a broader response by the San Francisco tech giant to pressure from unions around the world to put a floor under wages that supersede its fee-setting algorithms.

In a joint statement, Uber and the Transport Workers Union (TWU) said they signed an agreement to support an unspecified federal body to "set minimum and transparent enforceable earnings and benefits/conditions for platform workers."

Australian courts have supported Uber's argument that its drivers are independent contractors, not employees.

However, an inquiry by the state of New South Wales recommended setting up a tribunal in April to set "minimum pay and conditions for gig workers".