Introduction
Mr. Deputy Speaker Sir
Today, we are debating a Bill that marks a significant milestone in our ongoing efforts to uplift and care for the workers of Singapore.
Protecting our platform workers is a cause the Labour Movement has championed for many years.
This Bill addresses the unique challenges faced by workers in Singapore's growing gig economy—now widely known as platform workers.
These workers have quietly become indispensable to our daily lives, delivering our food, driving us to our destinations, and bringing parcels to our doorsteps.
At its core, this Bill seeks to strike a delicate balance.
On the one hand, it will provide our platform workers with the basic protections they deserve.
This is a significant win for the more than seventy-five thousand platform workers who rely on this work for their livelihoods.
For too long, these workers have operated in a grey area, unable to benefit from the protections of the Employment Act and relying on the goodwill of platforms for insurance coverage.
This Bill proposes to provide them with a safety net through mandatory CPF contributions, insurance coverage, and the right to formal representation.
On the other hand, this Bill is sensitive to the flexibility that characterises platform work. The objective is not just to protect current workers, but to ensure that the gig economy remains a sustainable part of our economy in the long term.
Mr. Deputy Speaker, if it is passed, this legislation will be landmark legislation globally. And the cornerstone of this legislative change is Singapore’s tripartism.
Tripartism—our unique collaboration among the government, employers, and unions—has long been the bedrock of Singapore’s labour relations.
It is this spirit of cooperation and dialogue that has enabled us to achieve what many other countries have struggled with: a harmonious and effective approach to regulating and improving the gig economy.
In many countries, efforts to regulate the gig economy have faced significant resistance.
In California, for example, platform companies have invested millions in legal battles to overturn legislation protecting platform workers.
The situation has been similarly challenging in Europe, where attempts to classify gig workers as employees have often been met with stiff opposition from platform companies.
However, in Singapore, we have taken a different approach.
By leveraging our strong tradition of tripartism, we have brought together the government, unions, and platform companies to craft a framework that balances the needs of all parties.
This collaborative approach has allowed us to move forward with this bold legislative and policy change, ensuring that we protect our workers while maintaining the flexibility and sustainability of the gig economy.
Key Provisions of the Bill
CPF Contributions
A key feature of the Bill is ensuring that platform workers have access to CPF contributions.
This is crucial for helping them build a secure financial future, especially for younger workers who aspire to own homes and save for retirement.
By mandating CPF contributions from both platform companies and workers, we are not just protecting these individuals—we are investing in their future.
While it may be challenging for workers to adapt to a lower take-home pay initially, the Platform Workers CPF Transition Support (PWCTS) scheme will help alleviate this burden.
This phased approach gives workers time to adjust to the new scheme.
Workers will also get employers’ contributions to the CPF, lending further support for longer term retirement and housing support.
If we care for workers, we must plan for the longer run.
Workplace Injury Coverage
Currently, mandatory work injury compensation for platform workers is non-existent.
Some platform companies offer insurance, but it is not mandated.
This leaves workers vulnerable when accidents occur, facing both medical bills and loss of income.
Cases of riders suffering injuries resulting in inability to work are not uncommon.
Without mandatory workplace injury coverage, they would have to rely on their savings or the goodwill of friends and family to cover their medical expenses and support their households.
Such is the precarious situation many delivery riders face.
Their struggles underscore the urgent need for a standardised, mandated workplace injury compensation scheme that protects all platform workers.
A 2022 survey by the Institute of Policy Studies further underscores the urgency of this issue, finding that more than a third of delivery riders in Singapore had been in some forms of accidents requiring medical attention.
Yet, without legislated protection, they are left to bear the financial brunt of such incidents.
This Bill will introduce mandatory work injury compensation for platform workers, providing them with the same level of protection as traditional employees under the Work Injury Compensation Act (WICA).
Whether it’s a delivery rider injured on the job or a private-hire driver involved in an accident, platform workers will now have the peace of mind that comes with knowing they are covered.
Representation
The Bill also allows for platform workers to be formally represented by associations, giving these associations legal standing to advocate on behalf of workers.
This is welcome news for labour union-affiliated associations like the National Private Hire Vehicles Association (NPHVA), and National Delivery Champions Association (NDCA), and National Taxi Association (NTA).
With formal backing, these associations can more effectively engage with platform companies to represent and protect their members, ensuring a more balanced playing field for platform workers.
Members would also be supported by NTUC’s full ecosystem of support and privileges.
Without such representation, platform workers often find themselves voiceless and powerless.
In the UK, Uber drivers had to fight a lengthy legal battle to be recognised as workers rather than independent contractors.
The absence of formal representation delayed their access to basic protection leave for years.
This Bill seeks to prevent such struggles by empowering associations to protect platform workers’ rights from the outset.
Challenges and Trade-offs
Mr. Deputy Speaker, while this Bill represents a significant step forward, it is important to acknowledge the challenges and trade-offs that come with it.
These protections will likely come at a cost at least, in the short term.
Platform companies will need to adjust their business models to comply with these new obligations, and some of these costs may be passed on to consumers.
The government has come in via the PWCTS to help with the transition. This means that short term price volatility is likely to be mitigated, giving time for the system to adjust.
However, we must remember the broader social compact that we’re trying to build in Singapore, requires contributions from all parties.
All of us—platform workers, companies, and consumers—must share the responsibility of ensuring that the gig economy remains fair and sustainable for all stakeholders.
By working together, we can ensure that these changes benefit not just platform workers, but all of Singapore.
Clarifications
There are a few points I would like to raise for the Ministry's consideration.
The gig economy often involves workers engaging with multiple platforms simultaneously. For instance, a delivery rider might work for different food delivery platforms or even for ride-hailing services.
This can create unique challenges when it comes to applying WICA.
We have talked about having a “lookback period”, but invariably this may lead to disputes among insurers or among companies, delaying compensation for workers. To address this, how does the Ministry ensure that the guidelines are sufficiently clear and a robust arbitration system in place so that pay-outs are not unduly delayed?
The Bill primarily focuses on workers engaged in transportation and delivery services, but the gig economy extends beyond these sectors.
Platforms offering cleaning services, digital work, and nursing services are significant parts of the gig economy.
Could the Ministry clarify its rationale for focusing on transportation and delivery services now?
And will there be a periodic review mechanism to update the definition of platform workers as the gig economy evolves?
Conclusion
Mr. Deputy Speaker, this Bill is a positive step forward for Singapore. Providing platform workers with the protection they deserve is essential as we build an inclusive society.
It also demonstrates that the PAP government is prepared to make bold changes to its policies to improve the lives of Singaporeans.
The gig economy offers workers a flexible way to achieve financial independence, and we must ensure they are protected from the imbalances of power that exist in this sector.
But our work does not end here. We must continue to listen to the voices of our platform workers and make necessary adjustments to ensure that this Bill achieves its intended outcome.
Every worker matters, and the Labour Movement stands ready to assist the government in engaging our platform workers to ensure that this Bill achieves its intent.
I look forward to a stronger social compact, ensuring that our society works towards leaving no worker behind.
Mr Deputy Speaker, I support the Bill.
