NTUC plans to form union-like bodies for platform workers if draft laws are passed
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Under existing laws, platform workers cannot form unions as they are not recognised as employees.
PHOTO: ST FILE
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SINGAPORE - The labour movement has announced its intention to formally represent cabbies, ride-hailing drivers and freelance delivery workers – otherwise known as platform workers – if and when draft laws allowing this are enacted.
The National Trades Union Congress (NTUC) said on Aug 29 that it will form new union-like bodies to enhance representation for platform workers in the event that draft laws under the recently tabled Platform Workers Bill
Under existing laws, platform workers cannot form unions as they are not recognised as employees.
Instead, they are represented by three industry associations affiliated with NTUC. These are the National Private Hire Vehicles Association (NPHVA), National Delivery Champions Association (NDCA) and National Taxi Association (NTA).
However, the three industry associations are registered societies, not unions, so they can engage the various online platforms only on an informal basis. This means work-related grievances and disputes can be discussed only if the platforms are willing to listen, and resolving them depends on the goodwill of platform operators.
This is set to change with the new Platform Workers Bill tabled in Parliament on Aug 6, which paves the way for platform workers to be designated a distinct category, separate from employees and the self-employed.
Under the Bill, which will be debated at the next available Parliament sitting, platform workers will be able to be represented by bodies with similar legal powers to trade unions
Like unions, these new entities will be able to sign legally binding collective agreements with platform operators on behalf of workers, to ensure accountability from the companies.
If the Bill is passed, there will also be a formal process to resolve collective disputes, with the Ministry of Manpower (MOM) being the first port of call for conciliation before the matter is brought before the Industrial Arbitration Court.
When asked by the media, NTUC was not able to provide more details about the new Platform Work Associations that it intends to form, including how many there will be and what form they will take.
It said only that a legal mandate to represent platform workers will empower the NPHVA, NDCA and NTA to address issues like fairer payment terms.
“Once the new platform workers law is in effect... we will be in a stronger position to speak up and negotiate better benefits and outcomes,” said NTA president Ken Tan, NPHVA general secretary Joseph Goh and NDCA general secretary Ng Gan Poh in a joint statement.
Pressed for more details, including for an indicative timeline, NTUC secretary-general Ng Chee Meng told reporters: “It is always as soon as possible and as conditions permit.”
Asked what the biggest difference will be between the NPHVA, NDCA and NTA and the new proposed Platform Work Associations, Mr Ng said they are not comparable.
“The powers, if passed in Parliament, will actually be a new area of law, allowing us to represent employee-like workers,” he added.
NTA general secretary Ban Kum Cheong later told reporters that a major grievance among ride-hailing drivers is the way their incentives are structured, which he said does not benefit platform workers.
Another gripe is having to deal with passengers who vape in the vehicle or refuse to wear their seat belts.
Mr Ban said the hope is that with formal representation, the association can conduct periodic discussions with the platforms to talk about such issues.
If the new platform workers laws are enacted, which is expected to be from Jan 1, 2025, NTUC said it intends to register new associations with MOM to formally represent these platform workers.
Members of the three existing platform worker industry associations will be transferred to the new entities. When this is done, the existing industry associations will then be dissolved.
However, NTUC will still need to obtain a mandate from workers in order to officially represent them. This can come either by getting direct recognition from a platform operator, or by securing majority consent from eligible workers through a secret ballot.
NTUC had earlier inked pacts with some platform operators like Grab
NTUC did not provide absolute figures on the number of current NPHVA, NDCA and NTA members, but it said that around 50 per cent of the platform workforce are members of the three existing industry associations.
According to MOM’s latest labour force report, released in January, there were 70,500 platform workers here in 2023. This is down from 88,400 in 2022, and 73,200 in 2021.
Platform workers will have to be union members to be formally represented, said NTUC.
It added that many part-time platform workers today may not know what their rights are, and the expectation is that more of such part-timers will come forward to join NTUC as members, if and when the new Platform Work Associations are formed.
The labour movement said it is looking at slowly growing its membership base, and that having about 60 per cent to 70 per cent of the platform workforce being NTUC members would indicate good traction.
Besides formal representation, the Platform Workers Bill also seeks to provide a standardised work injury compensation regime and greater levels of contributions to the Central Provident Fund (CPF) savings scheme for platform workers.
NTUC shed more light on this on Aug 29, noting that under the draft laws, platform operators would be required to contribute more to CPF savings, with the rate for workers aged 60 and below increasing gradually from 3.5 per cent in January 2025, to 17 per cent in 2029.
This means that a 40-year-old platform worker earning a net monthly income of $5,000 who opts in to the CPF scheme will receive $31,200 in CPF contributions from his platform operator between 2025 and 2029.
For lower-income platform workers earning $3,000 or less in net monthly income, NTUC said the Government will help to cover the increase in CPF contributions
By NTUC’s calculations, a 35-year-old platform worker earning $3,000 in net monthly income will stand to receive a total of $23,380 in additional cash and CPF savings between 2025 and 2029.
