Many gig workers support compulsory CPF; platforms 'no worse off' with any increased costs: Koh Poh Koon
A SIZEABLE number of ride-hailing and food delivery workers support mandatory contributions to the Central Provident Fund (CPF), a nationwide consultation thus far indicates. This is contrary to what some private surveys said in recent weeks.
Since September, an advisory committee set up by the government has been reviewing how to better protect these "platform workers", or independent contractors serving on-demand platforms like Grab and foodpanda.
The committee has received about 1,200 submissions from platform workers, Senior Minister of State for Manpower Koh Poh Koon said in Parliament on Tuesday (Apr 5).
Over half of the submissions touch on CPF, and of them, 55 per cent indicated support for compulsory CPF. The social security savings scheme involves both employers and employees making contributions to fund long-term needs.
"Housing was the most commonly cited reason for wanting CPF contributions, followed by retirement," said Dr Koh, who is advising the committee.
CPF is compulsory for Singapore employees, but not for the self-employed, who are only required to contribute to the medical portion, Medisave, as long as they earn over S$6,000 annually. Platform workers fall under the self-employed category.
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Singapore is studying whether this should change, similar to gig worker reviews in other jurisdictions like the European Union. If CPF becomes mandatory for these workers, the platforms will have to chip in too.
"While this will increase their business costs, it is no worse off than any other company employing workers in a similar sector, such as in logistics and transport," said Dr Koh.
"Besides, platform companies already contribute CPF for their management executives and administrative staff today - a point which many of these riders whom I engage with make as well," he added.
"They ask a question: As the ones who are bringing revenue in for the company risking themselves on the roads, why are they not given some of these basic things that employees working for the companies in the office actually also enjoy?"
Appropriate measures will be developed to ensure compliance if CPF is made mandatory, he said. The committee is also considering a suitable phase-in period to allow the industry to adjust for any new measures. Surveys' shortcomings
Dr Koh's comments come on the back of 2 recent surveys that highlighted concerns among gig workers about mandatory CPF and other regulatory changes. Last month, a poll of 175 food delivery riders by Blackbox Research found that some are worried about less cash flow for immediate financial needs.
A separate survey of 4,200 riders by Grab, foodpanda and Deliveroo said that over 60 per cent of them do not want CPF contributions deducted from earnings. The survey also claimed that such riders are not "low-wage workers", which The Business Times previously flagged as misleading.
Dr Koh noted that recent surveys vary in methodology, with some having a much smaller number of respondents, and also not capturing the management controls and challenges that workers face.
Addressing concerns that workers have about take-home pay, he added: "This somehow also suggests that platform workers are not as well-paid as some recent surveys have tried to portray."
Dr Koh cited how research by the Institute of Policy Studies found that riders would likely need to work more than 10 hours a day, 6 to 7 days a week, to earn over S$4,000 a month. They would have to cycle at least 60 to 70 kilometres daily and not reject any assigned orders, creating physical and mental stress.
Some workers have also flagged concerns about long-term sustainability, given the possibility of autonomous vehicles replacing their jobs.
That said, Dr Koh acknowledged that workers still value the flexibility and autonomy of gig work, given the low barriers to entry and quick access to ready cash, to tide over a period of need.
"While the surveys differ in their emphasis and findings, the one consistent feedback they note is that platform workers do experience greater uncertainty, and would appreciate some aspects of what employees enjoy, such as the benefit of CPF contributions and work injury compensation," he said.
Limited data
Information on the demographics of platform workers remains limited. Last year, the majority of those who depended on platform work as their main job were aged 50 and over, Dr Koh shared. Delivery workers tended to be slightly younger, with the majority under 40. About 80 per cent of those whose main job is a platform worker view it as their preferred job.
But more appear to be shifting to traditional work. Last year, 8 per cent of those who depended on platform work as their main job switched to work primarily as an employee, marking a slight increase from the 5 per cent to 6 per cent rate in recent years.
There isn't data available on what proportion of platform workers are ex-offenders, Dr Koh said in response to a question from MP Murali Pillai. Some surveys could be conducted but it will be difficult to get an accurate figure.
Nevertheless, Dr Koh emphasised the need to provide skills training for ex-offenders, so that they can look for sustainable jobs and there is less impetus to turn to platform work. Data is also lacking on how many make CPF contributions of their own accord, given that some could be casual workers. The committee is trying to get information from CPF and the platforms; its assessment thus far is that around 45 per cent are contributing to their Medisave accounts.
As Singapore moves past Covid-19, Dr Koh called for platform workers to not be forgotten.
Platforms respond
Responding to Dr Koh's speech, a Gojek spokesperson said that the company recognises that the private sector can provide greater support to vulnerable platform workers. It will continue to work with industry stakeholders.
foodpanda is likewise working with the advisory committee. But a foodpanda spokesperson disagreed with Dr Koh's comment that platform workers face management controls, which she said "mischaracterises" the convenience riders have.
"Platform companies like us do not enact any 'management' over their work. We do offer incentives and rewards, but they are free to stop working at any time and resume as they wish," she said.
A Deliveroo spokesperson similarly said that management controls "are in fact the platforms' service to riders" and that earnings are on a spectrum based on the amount of time riders choose to work.
"By enrolling in our platforms, delivery riders are not required to negotiate each and every job across over 8,000 merchants individually. The platforms eliminate this time-consuming process, allowing riders to focus on capturing on-demand income opportunities," she said.
If the government changes the legislation, platforms will abide and the increased costs of doing business will be reflected in the market, the spokesperson added.
Grab did not respond to requests for comment.
The committee will continue with its engagement efforts, and encourage workers and other stakeholders to share their views.
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