Alicia quit her job at a Singapore construction firm during the COVID-19 pandemic and signed up to work for an app-based delivery company, then a ride-hailing platform. While she welcomed the flexibility, she worried about her pension, and falling sick.
She was relieved when the city-state’s government last month said it would soon introduce legislation to extend work-related injury insurance and pension coverage to delivery and ride-hailing workers from 2024 onwards.
“As a single mother, I sometimes worry about how uncertain this job can be, because I never know how much money I will make every day,” said Alicia, 43, who asked to be identified only by her first name.
Photo: Bloomberg
“So it’s good that we can get some of the benefits that other workers get. It makes me feel a bit more secure, and I can plan for the future,” Alicia, who drives for 10-12 hours a day, told news Web site Context.
Singapore is among the first Asian nations to provide legal protections for people working in the gig economy, with the new rules set to benefit about 73,000 people who deliver food or drive passengers for companies such as Grab, Gojek, Deliveroo and Foodpanda.
The step follows strikes and protests worldwide as workers demand better conditions and higher wages from app-based businesses amid a post-pandemic drop in earnings, higher living costs and a jump in fuel prices.
Photo; Reuters
Some governments have taken note.
Indian authorities have said a social security law would be extended to gig workers, although it has not yet been implemented, while Chinese regulators last year ordered online platforms to ensure workers earned above the minimum wage, and had insurance coverage.
“We are seeing more government action over platform workers’ rights and protection,” said Akkanut Wantanasombut, who researches platform work at the Institute of Asian Studies in Bangkok’s Chulalongkorn University.
“In Southeast Asia, while there is no intergovernmental mechanism like the EU to foster platform worker protection, countries like Malaysia, Singapore and Thailand have started to review their labor laws,” he said.
The so-called gig economy, where workers provide services for customers, accounts for one-third of the world’s working population by some estimates, with an increasing share through digital platforms such as ride-hailing and delivery apps.
The sector ballooned during COVID-19 lockdowns as people needed food and other goods delivered to their homes, and millions of newly jobless people looked for work.
However, many gig workers say they are forced to work long hours for low pay and few benefits.
With platforms generally classifying workers as independent contractors, half of online workers earned less than US$2 per hour, and also lacked access to traditional employment benefits such as collective bargaining, insurance and work-related injury protection, according to the International Labour Organization.
Outside Asia, governments are also putting more pressure on platform companies to provide worker protections, with the US Department of Labor in October unveiling a proposal that would make it harder for firms to treat workers as independent contractors.
The European Council — which estimates that the number of gig workers in the 27-country bloc will rise to 43 million in 2025 — this month proposed tougher rules for firms, including prohibiting algorithms from making important decisions.
The Singaporean Advisory Committee on Platform Workers was set up in September last year to look into ensuring “adequate financial protection in case of work injury,” improving housing and retirement benefits, and “enhancing representation.”
“Gig work will become ever more central in all economies ... and the sustainability of the gig marketplace comes from the appropriate protection of platform workers,” Danny Quah (柯成興), vice-chairman of the advisory committee, said in e-mailed comments.
The proposed rules would require legislative changes, and would be implemented “in a progressive manner to manage the impact on all stakeholders,” Singaporean Minister of Manpower Tan See Leng (陳詩龍) said in parliament while accepting all 12 recommendations.
For workers such as Alicia, the new rules mean app companies and drivers would need to contribute to the government’s Central Provident Fund (CPF), which helps Singaporeans pay for their housing and retirement. This is optional for workers over the age of 30.
Firms would also have to provide work injury compensation insurance — with clear definitions of when a worker is considered to be “at work” — and to allow union representation.
However, the committee recommended that platform workers should not be classified as employees, as it considers flexibility a key feature of gig work.
“It is a false dichotomy to think that flexibility draws on the absence of protection, or to suppose that without protection the gig workplace gains flexibility,” Quah said. “Instead, flexibility and protection go hand in hand.”
The Digital Platforms Industry Association, which represents Deliveroo, Grab and Foodpanda, said it “broadly welcomed” the recommendations, but “implementation would require significant work ... to ensure that it is evenly paced to minimize disruption to merchants, consumers and rider partners.”
“It will also be necessary to evaluate the overall impacts on the wider ecosystem,” a spokesperson said in an e-mail, adding that CPF contributions would likely mean lower take-home earnings for drivers and riders, and higher prices for consumers.
For Roy, a 33-year-old who drives for about four to six hours a day with Gojek, that is not a good outcome.
“It’s good to have these benefits, but what I and other drivers really need is more earnings from the platform,” he said, asking that his last name not be used.
“We already pay up to 20 percent in commission to the platform,” he said. “If we are to lose even more money, where does that leave us?”
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) investment project in Arizona has progressed better than expected, but it still faces challenges such as water and labor shortages, National Development Council (NDC) Minister Yeh Chun-hsien (葉俊顯) said yesterday. Speaking with reporters after visiting TSMC’s Arizona hub and attending the SelectUSA Investment Summit in Maryland last week, Yeh said TSMC’s Arizona site turned a profit of NT$16.14 billion (US$514 million) last year in its first full year of mass production. “TSMC told me it was surprised by the smooth trial run of the first fab, which has left the company optimistic about the project’s outlook,”
RSS