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Commentary: Consumers might have to pay more for their rides and deliveries. It’s a price worth paying​

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Commentary

Commentary: Consumers might have to pay more for their rides and deliveries. It’s a price worth paying​

Numbering over 70,000, platform workers play critical roles in Singapore's economy, says the Lee Kuan Yew School of Public Policy’s Terence Ho.
Commentary: Consumers might have to pay more for their rides and deliveries. It’s a price worth paying

A man making food deliveries on Aug 19, 2024. (Photo: TODAY/Raj Nadarajan)

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Terence Ho
Terence Ho
12 Sep 2024 06:00AM
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SINGAPORE: Many of us rely on food delivery or ride-hailing services on a regular basis. Numbering over 70,000, platform workers play critical roles in our modern economy.
According to the e-Conomy SEA 2023 report, Singapore’s digital economy is expected to expand robustly in the coming years, outpacing GDP growth. In tandem, there is likely to be sustained growth in the demand for platform workers.
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Unlike regular employees, however, platform workers are not covered by laws governing employment. They fall in the grey zone between employees and freelancers, and may lack basic protections that many take for granted, such as workplace injury compensation and retirement benefits.

On Tuesday (Sep 10), parliament passed a landmark Bill that will give platform workers better labour protection. It provides platform workers with work injury protection, facilitates saving for housing and retirement, and enables union-like representation for this group of workers.

These changes are timely. But they have also raised questions among many about costs - specifically, whether the costs for these protections will be absorbed by platform operators, clawed back from workers or passed down to consumers.

It may be inevitable that consumers may have to pay more for their rides and deliveries, but this may well be a price worth paying.
 

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On the one hand, platform workers enjoy greater autonomy than employees as they may work for more than one platform, and can choose to accept or decline job tasks.

On the other hand, they are subject to significant management control by platform operators, which use algorithms to assign work and pay, as well as impose requirements on when or how a task is done.

Platform workers are also subject to risks on the job as they fulfil their driving or delivery assignments, without recourse to mandatory compensation for work injuries or lost earnings unlike regular employees.

Furthermore, platform workers’ earnings are often less predictable than those of employees, as they are subject to the vagaries of market demand and supply on a daily basis. Hence, there is a strong case to shore up worker protection as well as help platform workers build up retirement savings.

The new law, based on the recommendations of an Advisory Committee on Platform Workers, will plug existing gaps. It recognises that the relationship between platform workers and platform operators is distinct from employment or pure freelancing, and hence stipulates a tailored set of protections for this category of workers. Implementation details have been finetuned through consultation with platform operators and workers, as well as insurers, academics and tripartite partners.
 
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