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FedEx Pay Rates 2026: EBA, Award Rates & What Drivers Should Earn

4 min read

What FedEx Australia workers should be paid in 2026 — the expired TWU enterprise agreement, Road Transport Award rates by grade, penalties, and what to check on your payslip.

DN

Payroll & Compliance Editor · Registered BAS Agent, Cert IV Accounting & Bookkeeping

Who sets FedEx pay: an expired TWU agreement and the award floor

FedEx Express Australia's employed drivers, dock and warehouse workers are covered by an enterprise agreement negotiated with the Transport Workers' Union: the FedEx Express Australia – TWU Fair Work Agreement – 2024 - 2026. Its nominal expiry date was 30 June 2026 — which has now passed.

An expired nominal date does not mean the agreement stops applying. Under the Fair Work Act, an enterprise agreement keeps operating after its nominal expiry date until it is replaced by a new agreement or formally terminated. What the expiry does do is open the door to bargaining for a new agreement — and to protected industrial action in support of it, which is why FedEx workers began stoppages on Friday 28 August 2026.

Underneath the agreement sits the Road Transport and Distribution Award 2020 (MA000038) — the legal safety net for the sector. This page cites award figures only; for your actual pay, check the agreement itself against your payslip.

Transport Worker award rates from 1 July 2026 (MA000038)

These are the adult minimum rates under the Road Transport and Distribution Award, operative from 1 July 2026, pulled from the Fair Work Commission's pay database (verified 28 August 2026). Casual rates include the 25% casual loading.

ClassificationFull-time weeklyFull-time hourlyCasual ordinary hourly
Transport Worker Grade 1$1,021.00$26.87/hr$33.59/hr
Transport Worker Grade 2$1,045.50$27.51/hr$34.39/hr
Transport Worker Grade 3$1,057.60$27.83/hr$34.79/hr
Transport Worker Grade 4$1,076.20$28.32/hr$35.40/hr
Transport Worker Grade 5$1,089.60$28.67/hr$35.84/hr
Transport Worker Grade 6$1,102.00$29.00/hr$36.25/hr
Transport Worker Grade 7$1,118.00$29.42/hr$36.78/hr
Transport Worker Grade 8$1,150.50$30.28/hr$37.85/hr
Transport Worker Grade 9$1,169.70$30.78/hr$38.48/hr
Transport Worker Grade 10$1,198.80$31.55/hr$39.44/hr

Grades are set by the award's classification schedule based on the vehicle you drive and the duties you perform — check the classification named on your payslip against your actual work.

Two scope notes. These figures are the award's general transport stream (38-hour week); the award has a separate oil distribution stream with different hourly conversions. And long-distance interstate line-haul work falls under a different award entirely — the Road Transport (Long Distance Operations) Award 2020 — with a different pay structure. The figures on this page are MA000038 only.

Warehouse and dock: distribution facility rates

The award also carries a distribution facility employee classification stream, operative from 1 July 2026 (same source):

ClassificationFull-time weeklyFull-time hourly
Distribution facility employee Level 1$1,057.60$27.83/hr
Distribution facility employee Level 2$1,076.20$28.32/hr
Distribution facility employee Level 3$1,118.00$29.42/hr
Distribution facility employee Level 4$1,169.70$30.78/hr

Whether a warehouse or dock role sits in the Transport Worker grades or the distribution facility stream depends on how the site and the duties are classified under the award — the classification on your payslip should match what you actually do. If you are casual, a 25% loading applies on top of the minimum hourly rate.

What the expired agreement means for your pay right now

Three things follow from the agreement passing its nominal expiry:

  • Your current terms continue. The agreement's rates, penalties and conditions keep applying until a new agreement replaces it or it is terminated.
  • The award base rate is a hard floor. The Fair Work Act requires that the base rate of pay under an enterprise agreement is not less than the award base rate for your classification. If award increases (like the 1 July 2026 rates above) overtake an old agreement rate, your base rate must be topped up to at least the award figure.
  • A new agreement is what bargaining decides. Pay outcomes from the current dispute — rises, back-dating, job security clauses — depend on what is negotiated and approved. Nothing is automatic.

If your payslip shows a base rate below the award figure for your grade, that is worth querying regardless of what the agreement says. Run it through our payslip checker.

Penalty and overtime rates under the award

From the FWC pay database for MA000038 (operative 1 July 2026), full-time and part-time transport employees — dollar figures shown for a Grade 2 transport worker ($27.51/hr base):

  • Early morning shift: 130% — $35.76/hr
  • Saturday: 150% — $41.27/hr
  • Sunday: 200% — $55.02/hr
  • Overtime: 150% first 2 hours ($41.27/hr), 200% after ($55.02/hr)
  • Public holiday work: 250% — $68.78/hr
  • Good Friday & Christmas Day work: 300% — $82.53/hr

Casual transport employees (rates include the casual loading; Grade 2 figures):

  • Ordinary hours: 125% — $34.39/hr
  • Early morning: 155% — $42.64/hr
  • Saturday: 175% — $48.14/hr
  • Sunday: 225% — $61.90/hr
  • Overtime: 160% first 2 hours ($44.02/hr), 210% after ($57.77/hr)
  • Public holiday: 275% — $75.65/hr (Good Friday & Christmas Day: 325% — $89.41/hr)

Your enterprise agreement may set different (higher) penalty structures — check the agreement for what actually applies to you.

The strike: why FedEx workers are stopping work

From Friday 28 August 2026, around 4,000 FedEx workers — drivers, warehouse and dock staff — began two-hour protected stoppages after voting 91% in favour of protected industrial action. The TWU says the dispute is about pay, job security, limits on outsourcing, and mandatory consultation before automation and new technology are introduced. The union also says work has been shifted to contracted drivers paid piece rates — a parcel up to every four minutes — and that around 220 transport agreements are under negotiation across the sector.

We cover the stoppages, the rules around protected action, and what it means for pay in our companion piece: FedEx strike 2026 — what it means for workers and deliveries. The TWU's announcement is here.

What FedEx workers should check on their payslip

Whatever the bargaining outcome, these checks apply now:

  • Classification: does the grade on your payslip match the vehicle you drive and the duties you perform?
  • Base rate vs the award floor: your base rate can't be below the award base rate for your classification — compare against the tables above.
  • Casual loading: if you're casual, the 25% loading must sit on top of the minimum rate, not be absorbed into a flat figure.
  • Penalties and overtime: early morning, weekend and public holiday work should show the higher rates, whether from the agreement or the award.
  • Superannuation: check super is being paid on your ordinary time earnings.

If the numbers don't line up, ask payroll for a written breakdown of how your rate was calculated. Unresolved underpayments can be recovered for up to six years — start with our back-pay calculator, and contact the Fair Work Ombudsman on 13 13 94 if you need help.

General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

DN
About Daniel Nguyen

Six years running payroll for a Western Sydney commercial builder before moving to compliance writing and contract payroll. Registered BAS Agent (TPB). Cert IV in Accounting and Bookkeeping. Writes about pay calculations, superannuation, and the 2026 Payday Super rollout. Based in Cabramatta, Sydney.