Amazon Flex drivers have been granted enforceable minimum pay rates for the first time in the world.

A landmark decision by the NSW industrial relations tribunal will see NSW couriers who use their cars to transport customers’ orders earn at least $37.80 an hour by July 1, 2025. This would be close to a 40 per cent increase from Amazon's current pay.

Like many other gig economy workers, Amazon Flex keeps its drivers as independent contractors, so they are not subject to employment regulation or minimum wages.

However, the Transport Workers Union has been negotiating with operators, including Toll, Global Express and FedEx, and employer groups like AiGroup and NSW Business, to expand NSW owner driver laws.

TWU national secretary Michael Kaine says this has allowed NSW to become the first jurisdiction in the world to mandate enforceable rates.

“The impact of this decision will be felt around the world,” he said. 

“Gig behemoths are on notice: this is what happens when workers call out these dangerous bottom feeders and fight together for a fair day’s pay.”

Delivery of meals, such as for Uber or Deliveroo, are not covered by the ruling.