MOM looking into job protection for lower-wage workers: PM
The lack of basic job protection for delivery workers who work for online platforms is a growing problem, and the Ministry of Manpower (MOM) is studying how to give these workers a more secure future, said Prime Minister Lee Hsien Loong yesterday.
He said he was "especially concerned" about this group of lower-wage workers, who have worked hard as food deliveries shot through the roof during the Covid-19 pandemic and yet earn modest incomes.
Gig-economy companies such as Grab, Foodpanda and Deliveroo determine which jobs are assigned to these workers and also manage their performance. The workers can be penalised for delivering their orders too slowly and can even be suspended over some infractions.
Yet, because they do not have employment contracts, they have no right to the basic protection that employees enjoy, such as workplace injury compensation, union representation and employer Central Provident Fund contributions.
Noting this as he spoke about better support for lower-wage workers at the National Day Rally, PM Lee said: "Delivery workers are, for all intents and purposes, just like employees."
He said delivery workers are often under stress for reasons beyond their control. For instance, delivery riders may fall below their daily targets because of bad weather or vehicle breakdowns.
Around the world, gig-economy companies have faced growing criticism and legal challenges over their treatment of their workers, who are considered contractors and thus often not afforded basic entitlements such as paid annual and medical leave.
Some large gig platforms have, in recent years, started to provide a certain degree of protection or benefits such as access to skills training courses. For instance, Grab and Deliveroo offer delivery workers here free accident insurance.
Past reports said delivery workers here can earn $6.50 to $7.50 for every delivery.
The plight of such workers has become a growing issue here, as more people join the gig economy. They are not covered under the Employment Act, unlike regular employees.
PM Lee said yesterday that besides delivery workers, there were also lower-wage workers in other jobs who have an employee-like relationship with platforms.
These workers, he said, also find it harder to afford housing, healthcare and, eventually, retirement.
SECURE
"More people are taking up this type of work, so this problem is growing," he said. "MOM is studying it and will be doing consultations. We must address the issues to give these workers more secure futures."
Manpower Minister Tan See Leng, in a Facebook post referring to PM Lee's remarks, said his ministry will strengthen protections for self-employed people who work for online platforms, and an advisory committee has been set up to look into ensuring a more balanced relationship between platforms and their workers.
"Platform workers are much like employees, yet they lack the protections that employees enjoy. This is an important concern for us, as more people take up such work," he wrote.
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