NTUC will form new platform associations with more legal backing to protect and represent taxi drivers, private-hire drivers and delivery workers on work matters.
Under the new Platform Workers Bill introduced in Parliament on 6 August 2024, platform workers' wages will increase by up to 17 per cent through CPF contributions from platform operators. Platform workers will also be covered under the Work Injury Compensation Act.
Additionally, the law will legally empower Platform Work Associations (PWA) to collectively represent platform drivers, riders and workers – helping them negotiate for better wages, welfare, and work prospects.
NTUC announced on 29 August 2024 that it will form new PWAs to enhance its representation of these groups of workers once Parliament passes the Bill.
The new PWAs will continue the work of the National Taxi Association (NTA), the National Private Hire Vehicles Association (NPHVA) and the National Delivery Champions Association (NDCA), but this time, they will have more legal backing.
Once the new associations are formed when the law kicks in, existing members of the current three associations will be ported over to their new associations automatically, without requiring members to do anything on their part.
The PWAs will work to expand on existing efforts like providing financial assistance through initiatives like the NTUC Care Fund (Work Injury Relief), and the continued partnership with platform operators to uphold fair work practices and workplace safety.
The new associations will also be able to negotiate Collective Agreements with platform operators and establish formal grievance-handling mechanisms for members.
“There is an increasing need for a collective voice and formal representation to advance the interests of self-employed persons who have less bargaining power.
“For example, taxi drivers and private-hire vehicle drivers are concerned about workplace safety and health issues, lack of protection, as well as rising operation costs and retirement adequacy. We have brought forth these concerns,” stated NTUC in its #EveryWorkerMatters Conversations Report released in 2023.
For the over a decade, NTUC has led efforts to improve the wages, welfare, and job opportunities for platform workers.
In 2015, it established its Freelancers and Self-Employed Unit (U FSE) to represent Singapore’s growing pool of freelancers and self-employed persons despite facing legal limitations.
Under existing laws, platform workers are not recognised as employees and, therefore, not allowed to form unions to protect their interests.
With such limitations, NTUC has consistently advocated for the ability to legally represent platform workers, urging the Government to provide more financial support for platform workers, and advocating stronger safety measures to protect the community.
NDCA Executive Committee Member Mohammad Shaffiee, 44, welcomes the Platform Workers Bill.
He said that the law would empower the associations to better represent their members.
“Currently, not all platform operators are willing to have a memorandum of understanding with our associations. Once the Bill is passed, I believe they [platform operators] will be more open to hearing our concerns, as well as what our associations have to offer,” said Mr Shaffiee, who is also a Grab Delivery Rider.
The new legislation addresses NTUC’s calls for the Government to provide more financial support to platform workers to help them better manage their retirement and housing needs.
The new legislation would include the mandatory CPF contribution for platform workers born after 1995 and the option to opt-in for those born before.
From 2025 to 2029, the CPF contribution rates for platform workers and operators will gradually match that of salaried employees.
For platform workers aged 60 and below, the platform operator CPF contribution rates will increase gradually from 3.5 per cent in January 2025 to 17 per cent in January 2029.
Additionally, under the enhanced Platform Workers CPF Transition Support (PCTS) shared by the Ministry of Manpower on 22 August 2024, the Government will fully cover the increase in CPF contributions for platform workers earning up to $3,000 in net monthly income in 2025.
Speaking to the media, NTUC Secretary-General Ng Chee Meng said that the new platform workers law will reinforce NTUC’s efforts to safeguard platform workers’ livelihoods and welfare.
He said: “NTUC is committed to making sure platform workers’ interests are protected, because Every Worker Matters. We encourage platform workers to join us so that we can be your voice and work hand-in-hand for a better tomorrow.”
