Industry leaders Uber and Deliveroo have come under pressure from Labor and unions because the existing contractor model allows companies to pay less than industry minimum wages,though it permits workers to pick when they work.
Mr Belling revealed to an inquiry examining job security in the gig economy that the contractor model had suited the local market but it was now apparent there had to be improvements to the working conditions of couriers — even if it cost more.
“This hasn’t happened specifically on Menulog but when people start getting killed out there and hospitalised,that’s where we draw the line,” Mr Belling said,referring to aseries of five deaths late last year.
“It doesn’t really matter if they get killed on the Menulog platform or another platform,we play in the same industry. And we don’t want to be part of that. So yes,it may cost us more,but it’s the right thing to do.”
Mr Belling said he could not see any reason why other delivery companies could not follow Menulog’s lead. Menulog will begin by increasing insurance cover and examining ways to create a pool of money riders can draw on for sick leave and holidays.
It will also start a trial of employing riders directly in the Sydney CBD and open negotiations with the Transport Workers Union over industry pay rules. Menulog believes current rules mandating minimum shift times for employees could stifle the flexibility its couriers enjoy.
Ady Manzoor,30,who has been delivering for Menulog since 2018,said he was sceptical about becoming an employee because he valued the flexibility of choosing his own work hours around his study commitments.