In his speech during the debate on the Platform Workers Bill, Workers’ Party Chief and Leader of the Opposition, Mr Pritam Singh, laid out his support for the bill while raising significant concerns regarding its impact on both platform workers and consumers.
The bill, which follows the recommendations of the Advisory Committee on Platform Workers, seeks to strengthen protections for platform workers in three critical areas: ensuring financial security in the event of work-related injuries, improving retirement and housing adequacy through mandatory CPF contributions, and enhancing the overall representation of platform workers.
Mr Singh began by providing an overview of the platform worker landscape in Singapore, noting that as of 2023, platform workers accounted for 2.9% of the labor force, with 73,500 individuals engaged in platform-based jobs.
He pointed out that many platform workers, particularly in food delivery, earned the bulk of their income from these jobs, yet their financial position remained precarious. Citing a study by DBS Bank, he highlighted that platform workers were spending more than they earned, with many having little savings to fall back on.
While Mr Singh supported the bill’s intent to address these vulnerabilities, he raised concerns about the inevitable price hikes for consumers of platform services, such as food delivery and ride-hailing, as platform companies adjust to the new regulatory requirements.
He questioned whether platform companies would pass on the increased costs of CPF contributions and work injury compensation to workers by manipulating their payment algorithms, thus potentially reducing their take-home pay. He stressed that any significant price increases must be carefully managed, or it could lead to a reduction in demand for platform services, negatively impacting platform workers’ income.
Mr Singh also drew attention to the government’s survey findings, which indicated that while a majority of consumers were willing to pay more to support better protections for platform workers, their tolerance for price increases was limited. He called on the Minister to clarify how much prices were expected to rise and how those increases would be distributed across consumers, platform companies, and workers.
Moving to the CPF contributions component of the bill, Mr Singh voiced concerns about the opt-in system for workers above 30 years of age. He questioned whether this approach would be effective, given the low take-up rates for CPF contributions among platform workers, and suggested that an opt-out system might yield better results in encouraging participation.
He also raised the issue of whether platform workers who choose not to opt into CPF would still receive their platform companies’ share of contributions in cash, and whether platform companies could use CPF opt-in status as a means to allocate work unfairly.
In addressing the work injury compensation framework, Mr Singh stressed the importance of clear and transparent claims processes. He asked for further clarification on whether multi-homing platform workers, who use multiple apps, would have their earnings from all platforms considered in work injury claims. Additionally, he raised concerns about the scope of coverage, particularly for food delivery riders, and suggested reviewing the coverage period to protect these workers even when they are in transit after completing their deliveries.
Mr Singh also touched on the importance of enhanced representation for platform workers, while acknowledging the balance that must be struck between respecting the proprietary algorithms of platform companies and ensuring fairness in job allocation and pay rates. He suggested that platform worker associations should have access to workers’ data to advocate effectively for fairer conditions, drawing parallels to similar practices in the UK.
In conclusion, Mr Singh affirmed the Workers’ Party’s support for the bill, but reiterated that its success would depend on ensuring price increases are equitable and that workers’ rights are protected.
He cautioned against the potential for profiteering by platform companies under the guise of regulatory compliance and stressed that the ultimate goal must be to improve the security and working conditions of platform workers without creating additional financial burdens on them.
