Labor accuses Amazon of underpaying Australian workers

Labor accuses Amazon of underpaying workers

Federal Labor has accused tech giant Amazon of systematically underpaying workers in Australia by almost a third of the wages they are entitled to.

In a job security hearing on Thursday, Labor senator Tony Sheldon claimed Amazon was paying delivery drivers $13.71 less than what they are legally entitled to, slamming the global retailing behemoth for not coming to the committee prepared.

Amazon representative Michael Cooley defended the company's Amazon Flex minimum rate of $108 for a four-hour delivery block was in accordance with respective state and territory laws.

Senator Sheldon was basing his underpayments claim on the Victorian Rates and Costs Schedule for owner drivers, which states the hourly rate for a driver is $40.71, which includes fixed and variable costs.

Amazon's hourly rate of $27 for Victorian Flex drivers is closer to just the labour component of the award detailed in the Victorian rates schedule.

"If that figure is correct that I am putting to you then you are paying less than what is the recommended rate," Senator Sheldon said.

Mr Cooley replied: "I can say categorically that we comply with all relevant rates in Victoria with respects to our flex delivery partners."

The rates schedule was provided by the Transport Workers Union which said the rate was misleading.

Amazon was provided the figures on Thursday morning, which Mr Cooley said he had not yet reviewed.

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This story Labor accuses Amazon of underpaying workers first appeared on The Canberra Times.