New work group to review training for private-hire car licence after Autobahn saga

SINGAPORE – Following the abrupt repossession of vehicles by creditors of Autobahn Rent A Car that left hirers stranded, the Land Transport Authority (LTA) will look at helping drivers understand rental contracts as part of training to become a private-hire car driver.

Senior Minister of State for Transport Sun Xueling said in Parliament on Jan 14 that LTA will be forming a new work group to review the subjects covered in the vocational licence training to drive a private-hire car.

The review will incorporate

the Platform Workers Act

, which took effect on Jan 1, and the relevant protection for workers, said Ms Sun, adding that LTA is open to including education on contractual matters in the training curriculum.

In response to Ms Yeo Wan Ling (Punggol GRC), who asked if LTA should consider regulating owners of large rental car fleets to protect private-hire drivers, Ms Sun said that doing so could result in raising the cost of private-hire cars, which would likely be passed on to drivers and passengers.

Ms Yeo, who is adviser to the National Private Hire Vehicles Association (NPHVA) and National Taxi Association (NTA), and assistant secretary-general of the National Trades Union Congress (NTUC), said drivers often face onerous contractual terms when renting cars. These include unclear clauses governing termination and having to pay high fees for vehicle damage.

In December, creditors repossessed vehicles from Autobahn Rent A Car after it

failed to get temporary protection from the High Court

. This led to drivers losing their vehicles, affecting their livelihood. The drivers also had difficulty recovering their rental deposits. Autobahn is reported to have a fleet of 1,700 vehicles. On Jan 6, it said through its lawyer that it was

suspending operations

.

Ms Sun said: “We are deeply sympathetic towards the plight of drivers who are affected by the Autobahn business failure. We recognise the impact large car companies have on drivers’ livelihoods when such companies become financially distressed or insolvent.”

In response to the situation, Ms Sun said LTA worked with NTA, NPHVA and fleet operators to help affected drivers secure other vehicles and earning opportunities. NTUC also provided legal advice to members who needed help.

Ms Sun said providing such support does not require fleet owners to be regulated.

NPHVA, an affiliate of NTUC, told The Straits Times on Jan 13 that it is working with LTA to strengthen safeguards for private-hire drivers who rent cars.

Mr Raven Lee, NPHVA’s executive secretary, said the association is advocating clearer and fairer rental contracts, for terms like late payment, termination and replacement vehicle arrangements.

“Beyond contract terms, NPHVA is calling for safeguards to be put in place to protect our drivers in the event that car rental companies face financial distress or insolvency,” he said. “Given drivers’ dependence on rental vehicles to earn a living, rental companies should have contingency arrangements to prevent sudden service disruptions, including clarity on the handling of vehicles, deposits and existing contracts.”

As part of training to be licensed as a private-hire driver, the current curriculum includes topics like road safety practices and planning routes using mapping and navigational tools.

Labour chief and MP Ng Chee Meng (Jalan Kayu) said affected drivers were concerned that they would not be able to recover rental deposits paid to the leasing companies, which can range from $500 to $1,000. He asked if protective measures, like ring-fencing the deposits to protect the drivers’ interest if the company becomes insolvent, can be considered.

Ms Sun said putting in such a requirement would raise the compliance burden for the companies, which would eventually be borne by drivers and passengers in the form of higher costs. “That said, I recognise the difficulties that the current set of drivers who are impacted by the Autobahn situation face,” she said.

“The matter is now before the High Court, but because these drivers are unsecured creditors, it is likely that they will face difficulties getting their deposits.

“This is why I think, moving forward, we need to work closely with the associations to see how to better equip drivers on what they understand about their rental contracts,” she said.

Labour MP Patrick Tay (Pioneer) asked if the

short-term relief fund

managed by the Tripartite Alliance for Dispute Management could be extended to affected drivers, to which Ms Sun said that she would consult the Ministry of Manpower.

In response to an ST request for details about the review mentioned by Ms Sun, an LTA spokesperson said: “This is an informal work group, consistent with the way we usually work together with our tripartite partners.”