NTUC and affiliates call for more financial and medical support for platform workers

SINGAPORE: The National Trades Union Congress (NTUC) and affiliates on Tuesday (Nov 15) called for better protection of platform workers in areas such as long-term financial adequacy and medical and injury coverage.

In a joint news release, NTUC, the National Taxi Association (NTA), National Private Hire Vehicles Association (NPHVA) and National Delivery Champions Association (NDCA) also raised the issue of better representation for such workers.

“Platform workers find it a struggle to plan for their long-term needs as they generally have modest incomes and are unable to determine the fees they charge for their service as these are dictated by platform operators, making them price-takers,” the organisations said.

A study by the Institute of Policy Studies (IPS) released earlier this month showed that fewer than 4 per cent of food delivery riders make more than S$5,000 a month, with the largest proportion – 33.9 per cent – earning between S$1,000 and S$1,999.

MANDATORY CPF CONTRIBUTIONS

Platform operators are also not required to make Central Provident Fund (CPF) contributions for platform workers, as they are not considered employees.

Last month, Non-Constituency MP Hazel Poa (PSP) asked Manpower Minister Tan See Leng for an update on a study to make CPF contributions mandatory for platform workers.  

In a written answer, Dr Tan said more than half of workers who responded to a public consultation felt that mandatory CPF contributions are important for housing and retirement needs.

But some also expressed concern about the impact on their take-home earnings.

“Although platform companies recognise the importance for platform workers to build up their CPF for retirement and housing needs, the companies have raised concerns that such a move will result in increase in business cost,” Dr Tan added.

On Tuesday, NTUC and its affiliates also highlighted that platform workers find it challenging to make CPF contributions as they need to do it themselves – in contrast to employees whose contributions are automatically processed by employers.

“As a result, some platform workers do not have sufficient amounts in their CPF,” the organisations said.

They added that it is “critical” for both platform workers and operators to contribute to CPF so that workers can build up financial adequacy for long-term needs.

“Should CPF contributions be implemented, there needs to be necessary support provided for platform workers through the transition period where CPF contributions are enforced so as to mitigate the impact on their take-home pay,” said the statement by the associations.

They also called for “long-term support” for the earnings of lower income platform workers, to supplement their income and boost long-term financial adequacy.