The Ministry of Labor’s draft act to mandate minimum wages for delivery drivers next year would not inflate prices on delivery platforms, as the current hourly rate for workers is already above the new standard, Minister of Labor Hung Sun-han (洪申翰) said today.
Delivery drivers already earn an average hourly wage of NT$270 to NT$290, above the draft’s proposed minimum of NT$245 for next year, with the new regulations acting as more of an assurance and protective measure for drivers, Hung said on a radio program.
The ministry on Friday last week unveiled a draft management act governing digital delivery services to ensure that delivery workers’ compensation is 1.25 times the minimum hourly wage, with the aim of preventing wage theft and protecting workers’ rights.
Photo: Taipei Times
Should the law go into effect next year, delivery drivers would earn at least NT$245 per hour, 1.25 times next year's national minimum wage of NT$196.
Taiwan currently has more than 100,000 delivery drivers, and the ministry cannot overlook their rights, Hung said.
Delivery platforms use digital algorithms to manage labor allocation, which is considerably different from traditional employers and leaves drivers vulnerable to fluctuations in wages, he said.
Hung said he personally uses delivery platforms regularly and reassured consumers that prices would not increase, as the act takes into account delivery platforms, drivers, retailers and consumers.
It would protect drivers who have complained that platforms often decrease compensation at will by setting a mandated minimum hourly payment, but not by legally increasing workers’ wages, he said.
The rate has been set at 1.25 times the minimum wage, as drivers must cover expenses including transportation, vehicle maintenance and fuel, and account for idle time spent in transit, he said.
If the minimum wage were to increase in the future, delivery drivers’ compensation would also adjust accordingly, he added.
The act would also require delivery platforms to inform drivers of their pay, pickup and delivery locations before they accept an order, as well as obtain commercial, group accident, liability and occupational injury insurance for drivers.
Platforms would also be barred from requiring drivers to stay online, forcing them to work during natural disasters or other emergencies, and from terminating drivers without valid cause.
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