By Byron Kaye

SYDNEY, Reuters – Amazon.com Inc. (NASDAQ:) was ordered by an Australian state to pay a minimum wage to its freelance drivers on Friday. This decision was hailed as the first to compel Amazon.com Inc. to comply with government regulations on such payments.

To be phased in over three year periods starting March 1, the measure requires Amazon Flex (NASDAQ;)’s world-leading retailer to pay driver for Amazon Flex (NASDAQ.) at a minimum A$37.80 ($27.20/hour) in Australia’s most populous state, New South Wales.

This makes Australia’s state headquarters for Amazon’s Australian operations the first to pay contractors wages that have been set by law.

Michael Kaine (union’s national secretary) stated that gig behemoths have been put on notice. This is what happens when workers expose these bottom feeders, and work together to get a fair day’s wage.

In a statement, he said: “For too many years the likes Amazon were able to exploit independent contractors loopholes and sidestep rights to rip workers off fair rate of pay.”

Amazon spokesperson stated that they are pleased to provide Amazon Flex delivery partners with competitive compensation and flexibility for work whenever it suits them.

According to the spokesperson, Flex drivers in New South Wales who drove a sedan earned on average more than the effective rate starting from March 1.

As the COVID-19 pandemic caused a surge in online shopping, shares of the $1.6 billion company nearly doubled their value during the past 2 years.

However, it is being criticized for its inflexible approach to worker safety and labor laws in countries it serves.

Amazon was ordered by the U.S. Federal Trade Commission to pay $61.7million to Flex drivers to reimburse them for stolen tips.

Flex was launched in Australia in 2020. Drivers who drive their vehicles and deliver packages from Amazon Distribution Centres by deadline have been paid varying amounts by Flex. They aren’t technically employees.

Friday’s decision by the New South Wales Industrial Relations Commission confirmed that all workers have the right to enforce rights and protects.

Officials of the Commission were unavailable for comment immediately.

($1=A$1.3897)