National Day Rally: MOM studying job protection for delivery, gig economy workers

THE Ministry of Manpower (MOM) is studying how to address the needs of delivery workers who get their jobs via online platforms, and thus lack basic job protections, said Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday.

After announcing recommendations by the tripartite group on lower-wage workers, such as requiring companies that hire foreign workers to pay the local qualifying salary for all local staff, Mr Lee went on to highlight a group of lower-wage workers for whom he was "especially concerned": delivery workers for platforms such as foodpanda, Grab and Deliveroo.

Such workers are for all intents and purposes "just like employees", said Mr Lee. The online platforms set the price of their product, determine which jobs are assigned to which workers, and manage the workers, including by imposing penalties and suspensions.

Yet delivery workers have no employment contracts with these platforms, and thus lack basic job protections such as workplace injury compensation, union representation, and employer Central Provident Fund contributions, said Mr Lee.

Besides delivery workers, there are some other lower-wage workers who also have "an employee-like relationship" with platforms, said Mr Lee, without elaborating. "They too will find it harder to afford housing, healthcare and eventually, retirement."

"More people are taking up this type of work, so this problem is growing." The MOM is studying this and will be holding consultations, he said, adding: "We must address the issues to give these workers more secure futures."

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In a Facebook post after the rally, Manpower Minister Tan See Leng said that an advisory committee is being set up "to look into strengthening protections and ensuring a more balanced relationship between platforms and platform workers", for self-employed persons who work for online platforms.

 Goh Swee Chen – who chairs Nanyang Technological University's Board of Trustees as well as the National Arts Council, among other board appointments – has agreed to chair the committee, he added. "The Committee will begin their work soon and consult widely."

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