Timely for the National Delivery Champions Association to have Legal Backing to better represent Delivery Workers

Findings of a survey on platform-based freelance food delivery riders commissioned by the National Trade Unions Congress’ (NTUC) affiliated association, the National Delivery Champions Association (NDCA), and conducted by Ipsos, show that most delivery riders wish to have a body to represent their interests. The survey also showed that the top concerns of delivery riders are income stability, a need for CPF contribution and job stability. The survey, which was conducted by face-to-face interviews from 15 February to 8 March 2022 with 302 respondents, aimed to gain insight into the concerns and pain points of food delivery riders.

 

 

Need to Better Represent Food Delivery Riders

 

In terms of representation, survey findings show that 79% of delivery riders stated that it is important to have a union group represent them. They hope for this body to support them in negotiating fair contract terms and resolving order issues with platforms.

 

NTUC recognises the need to represent delivery platform workers and plays an active role to advocate and advance their interests. Hence, NDCA was set up in 2020 to be a collective voice for self-employed delivery workers. However, as platform workers are not classified as employees, NDCA does not have the same legislative prowess as trade unions. NDCA has been calling for stronger legislative backing to better represent these workers, who it feels are subjected to a high degree of control by platform companies, so as to better protect them and improve their livelihoods.

 

Since its formation and the onset of the pandemic in 2020, NDCA has made efforts to alleviate delivery riders’ concerns:

 

a. In response to the introduction of the petrol duty hike by the Ministry of Finance in February 2021, NDCA surfaced to the Government the cost-impact of the hike on delivery workers and possible support measures to be extended to them;

 

b. Initiating the identification, sourcing and collation of over 50 locations islandwide as rest areas for delivery riders to have their meals safely during the Phase 2 Heightened Alert period. This saw our Labour Members of Parliament and NTUC social enterprises, such as NTUC Club and Mercatus malls, taking the lead;

 

c. Urging building management owners to extend carpark grace periods to alleviate the financial pressures of freelance drivers who make food or parcel deliveries; and

 

d. Engaging platforms to raise common pain points that delivery riders face in terms of their health and safety in view of the risk of catching COVID-19, to introduce measures such as contactless payment options as compared to cash transactions.

 

The recent formation of the Tripartite Workgroup (TWG) on Representation of Platform Workers on 30 August 2022 is timely, which sees representatives from the tripartite partners - Government, NTUC, Singapore National Employers Federation, as well as the Singapore Business Federation and platform companies. The TWG provides a platform for stakeholders to agree on workers representation and to set in place an enhanced framework that will close the imbalance between platforms and platform workers. With the unique circumstances that platform workers face, there is a need to tailor a representation framework that addresses these features.

 

 

Pain Points that Need Urgent Attention

 

Alongside representation issues, NDCA has been advocating for three focus areas that affect delivery riders and need urgent attention since August 2021: (i) Work terms and conditions (e.g. transparency and adequate notice of adjustments in compensation and incentives); (ii) Better working conditions (e.g. timely support from platforms); and (iii) Medical and injury coverage. These concerns and pain points came forth in the survey findings.

 

 

Work Terms and Conditions - Top Concerns Comprise Income Stability, Lack of CPF, Job Stability

 

Food delivery riders listed their top three concerns as income stability (88%), lack of CPF contribution (76%), job stability (61%). With heavy reliance on food deliveries as their only or primary source of income, 9 in 10 stated that they are concerned for their future and ability to fulfil their financial responsibilities. Most see a need for additional side income to supplement their earnings (88%). The survey also revealed that food delivery riders express strong concern for safety on the road (77%). However, almost half (46%) would proceed with making their deliveries despite unfavourable conditions, so as not to compromise on earnings/suffer penalties for late deliveries or cancellations.

 

As price-takers, platform workers such as food delivery riders are subjected to terms and conditions set out by platforms and having to bear penalties should they fail to comply. NDCA has been working closely with platform operators to ensure fair earnings for delivery workers by reviewing their commission structures and making their incentive structures more transparent. There should also be adequate notice to communicate planned changes to delivery riders when adjustments are made to these structures. Such adjustments should not be passed on as additional costs to delivery workers.

 

 

Injury and Medical Coverage – Current Coverage is Insufficient

 

On insurance coverage, findings show that out of the 21% of respondents who have made an insurance claim with platform companies’ personal accident plan, about a third of them (~36%) find that coverage is insufficient. Out of the respondents who find coverage insufficient, those who have made an insurance claim before (36%) or those without personal insurance (40%) are more willing to top up in return for better coverage.

 

Food delivery riders are particularly vulnerable as they are unable to claim for work injuries under the Work Injury Compensation Act (WICA) despite being susceptible to skids and falls in wet weather. Medical coverage provided by platform operators is currently inadequate and uneven, leaving little to no income support for riders if they are on medical leave. These findings recommend that a review of the protection for riders and for the possibility of WICA to be extended to them. Platforms should provide reasonable accident insurance coverage for all riders, including new and entry-tier riders. The coverage must cover medical expenses, loss of income, and unfortunate situations such as loss of life, total permanent disability.

 

In its efforts to address the wellbeing and safety of delivery riders, NDCA is looking into or has embarked on the following:

 

a. Reviews into better financial protection for workers who have sustained work-related injuries as part of the Advisory Committee on Platform Workers;

 

b. Raising awareness of delivery riders on bicycle and Power Assisted Bicycle (PAB) on safe riding practices in collaboration with the Land Transport Authority’s “Confidence on Wheels” Programme;

 

c. Initiated the formation of the Workplace Safety and Health Workgroup for Delivery Services in October 2021 to facilitate regular communication with delivery platforms. The Workgroup aims to develop practices related to the safety, health and welfare of riders and promote the adoption of such practices at their workplaces;

 

d. Organising Mandatory Theory Test Preparatory Workshops for PAB riders to better understand the rules and build their confidence to pass the test; and

 

e. Calling on platform operators to ensure that deliveries are not only speedy but more importantly safe, such as having bulky orders matched to a more appropriate delivery mode.

 

 

Working Conditions – Better Order-related Support Required from Platforms 

 

With regard to customer service support, survey results show that riders are generally satisfied with the speed of response and resolution of customer service, with 7 in 10 riders satisfied. However, most issues raised are order-related, with the top three identified as (i) Customer’s address being incomplete; (ii) Delay in order by restaurant; and (iii) Order being cancelled by the customer.

 

While most respondents have no issue with the quality of customer service provided by platform operators, the speed of responsiveness to urgent issues can be frustrating for delivery riders. To improve order-related support provided by platforms, NDCA calls on platforms to continue to have in place structured, transparent and fair handling procedures. NDCA also recognises that more support needs to be provided for riders who are less literate and less comfortable with using digital apps.

 

 

Work with Key Stakeholders to Tackle Issues

 

Ms Yeo Wan Ling, Advisor to NDCA, said, “The pandemic has highlighted how essential a role delivery workers play especially during the pandemic and likewise, the challenges faced by them have also gained prominence. Now more than ever, there is an urgent need to represent them, which is why the NDCA has been calling for stronger legislative backing. We will continue to work closely with various stakeholders, such as the Government and platform companies, to make this a reality so that we can safeguard our delivery workers’ livelihoods and ensure that they have a fair and sustainable working environment. We encourage more delivery workers to join NDCA so that we can be a strong voice to represent and champion your interests.”