SINGAPORE: Platform workers asked how they could be shielded from potential penalties and extra costs in a dialogue session on Friday (Feb 3) about job protection recommendations that the Government accepted last year.
The recommendations include adjusting Central Provident Fund (CPF) contribution rates for younger platform workers and platform companies, to be aligned with that of employees and employers. Older platform workers can choose whether they want to opt in.
Workers expressed concern over the possibility of platform companies discriminating against those who opt in to a CPF regime, or increasing commission charges to cover the cost of their CPF contribution for workers.
The dialogue was organised by the Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC).
Senior Minister of State for Manpower Dr Koh Poh Koon said that in theory, it was possible that platform companies would favour workers who do not opt in to the CPF scheme, since the company could then save on the 17 per cent contribution.
But the strategy would not make sense in the long run because CPF contributions will be mandatory for workers below the age of 30 at the time that the recommendations are implemented, he said.
That means that the number of workers not part of the CPF regime will be very small, and companies are already struggling to find enough workers.
Additionally, among workers who make deliveries on bicycles, the younger ones are likely to be stronger and more efficient, said Dr Koh, who is also adviser to the Advisory Committee on Platform Workers.
“My sense (is that) they will find it very difficult to discriminate,” he said, adding that it would be made clear in fair employment practice guidelines that “any form of discrimination even in this kind of setting will not be seen to be a right thing to do”.
When asked how to ensure companies pass costs to consumers and not workers, Dr Koh said the Government was seriously discussing this – but also that “the true nature of the market is that any cost that the company takes on, eventually they will end up charging the customers more”.
“They will have to pass it through,” he said.
Manpower Minister Tan See Leng said Singaporeans bearing more costs would be “in recognition of the good work” that platform workers are doing.
“At the same time, from the platform companies’ perspective, they also understand that moving forward in terms of supporting the sustainability of this business, all of you have to be taken care of,” he said at the dialogue.
CALCULATION CLARITY
The platform workers also sought clarity on how their CPF contributions would be calculated, such as whether the percentage taken would be after costs are deducted.
Dr Koh confirmed that expenses would not be included when calculating CPF contributions. For example, private-hire drivers have a fixed expense ratio of 60 per cent.
If a driver earns S$100 in a day, the CPF contribution will be 20 per cent and 17 per cent of S$40.
One worker pointed out that with rising costs, the 60-40 expense ratio for drivers might not be representative.