Oral Answer by Senior Minister of State Dr Koh Poh Koon to PQ on Platform Workers

NOTICE PAPER NO. 1085, 1091, 1093 OF 2022 FOR THE SITTING ON OR AFTER 5 APRIL 2022

QUESTION NO. 2778, 2796, 2806, 2807 FOR ORAL ANSWER 

MP: Mr Leon Perera

To ask the Minister for Manpower (a) among private hire car drivers and food delivery riders, what are their (i) mean and median employment duration and (ii) numbers according to age group; (b) whether the Ministry tracks the number and percentage of these riders who have moved on to permanent employment in other industries and, if so, what are these numbers in each of the past five years; and (c) whether the Ministry can provide customised career transition programmes for these riders to help them successfully find alternative employment.

MP: Mr Mohd Fahmi Bin Aliman

To ask the Minister for Manpower (a) what are the concerns that platform companies and gig workers have raised with respect to the suggestion for platform companies to make mandatory CPF contributions for gig workers; (b) whether a survey or poll has been conducted to determine the proportion of gig workers who support such a suggestion; and (c) if so, what are the survey results.

MP: Mr Liang Eng Hwa

To ask the Minister for Manpower (a) what is the longer-term job outlook for food delivery riders; and (b) whether there is a need to improve the employability and career planning for food delivery riders.

MP: Ms Yeo Wan Ling

To ask the Minister for Manpower given that many freelancers such as food delivery riders and point-to-point (P2P) drivers do not determine the fees of services, but leave it to their platform partners' discretion, what are some of the safeguards that will be considered to ensure that these companies comply with their obligations should CPF contributions be made mandatory.


Answer

1. Platform workers face unique conditions at work. They are subject to management control and are not able to set their own fees or remuneration, unlike typical freelancers. However, compared to employees, they receive lower job protections. To address this, the Advisory Committee on Platform Workers was convened in September last year to look into three key areas of concern, namely: enhancing housing and retirement adequacy, providing financial protection in the event of work injury and strengthening representation. 
2. Since it was convened, the Committee has actively engaged stakeholders through dialogues as well as a public consultation paper. To date, we have reached out to more than 20,000 platform workers and received about 1,200 submissions from them. To Mr Mohd Fahmi’s question, more than half of these submissions touched on CPF contributions, and of which, 55% indicated support for the idea of mandatory CPF contributions to platform workers. Housing was the most commonly cited reason for wanting CPF contributions, followed by retirement. This is not surprising, as platform workers today only make CPF contributions to their Medisave Accounts for their healthcare needs. In the coming months, we will continue with our engagement efforts, and encourage all stakeholders, including platform workers, to share their views. 
3. The Committee is also aware that other surveys on platform work were published recently, some of which were commissioned by the platform companies. These surveys vary in methodology and some have much smaller number of respondents. Some of these surveys also did not capture the management controls and challenges that the platform workers face. An independent ethnographic study by Institute on Policy Studies on delivery riders found that riders who are keen to earn an income of more than $4,000 a month would likely need to work more than 10 hours a day, 6 to 7 days a week, cycling at least 60 to 70 kilometres daily and not reject any assigned orders. They need to maintain long and disciplined hours at work and must be physically fit. There is significant physical and mental stress imposed on these workers. 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. 
4. Ms Yeo Wan Ling asked about how mandatory CPF contributions for platform workers could be implemented. Without prejudging the outcome of the Committee’s deliberation, if this is implemented, we will develop appropriate mechanisms to ensure compliance. 
5. Today, platform workers already make mandatory CPF contributions out of their own earnings, although at a lower level of contribution compared to an employee. The Committee is mindful that if mandatory CPF contribution for platform workers is introduced, platform companies will also have to start making contributions. 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. Besides, platform companies already contribute CPF for their management executives and administrative staff today, a point which many of the riders whom I engaged with made as well. They asked a question. As the ones who are bringing in revenue for the companies and risking themselves on the roads, why are they not given some of these basic things that employees working for the companies in the office also enjoy? At the same time, the Committee is also aware that some platform workers are concerned about the impact on their take-home earnings. This also suggests that platform workers are not as well-paid as some recent surveys have tried to portray. 
6. Mr Leon Perera and Mr Liang Eng Hwa asked about the profile and longer-term career prospects of platform workers. In 2021, the majority of those who depended on platform work as their main job were older residents aged 50 and over, although delivery workers tended to be slightly younger, with the majority aged below 40. This is not surprising, as riders have to maintain a certain level of physical fitness and toil for many hours a day covering long distances in order to keep their earning levels high, as I had earlier described. The majority, or around 80% of those whose main job is a platform worker view it as their preferred job. In 2021, 8% of those who depended on platform work as their main job switched to work primarily as an employee – a slight increase from the 5% to 6% in recent years.
7. We will continue to support platform workers to actively plan their careers and strengthen their employability, while respecting the preference of many to continue in platform work. For those looking for employment opportunities, Workforce Singapore and NTUC’s Employment and Employability Institute offer career matching services including career coaching, employability workshops and job fairs. The Workfare Skills Support Scheme and SGUnited Jobs and Skills Package are also available to them.
8. At the height of the pandemic and the Circuit Breaker, these delivery riders helped maintain our quality of life by risking themselves to meet our needs. Singaporeans have called for more to be done for this group of precarious workers. These are the often-forgotten heroes during the pandemic. Even as we gradually ease into endemic phase of our fight against COVID-19, let us not forget the needs of this group of precarious workers. The Committee’s work is still ongoing. As it continues to consult widely and facilitate deeper discussions, we will take in the feedback from platform workers and platform companies. The Committee aims to provide practicable and sustainable recommendations, and is considering an appropriate phase-in period to allow the industry to adjust.