PLATFORM operators may see their business costs rise after platform-worker protections kick in next year, but these costs are “no different” from those incurred by employers who already provide such safeguards for their employees, said Senior Minister of State for Manpower Koh Poh Koon in Parliament on Tuesday (Sep 10).
Making it mandatory for platform operators to provide Central Provident Fund (CPF) contributions and work-injury compensation is just levelling the playing field, he added.
“(This) ensures that platform operators, who derive their sources of revenue from the hard work and risks taken by platform workers, provide them with basic rights and protections.”
Dr Koh was giving his round-up speech on the debate on the Platform Workers Bill, which implements these protections. The Bill was passed on Tuesday after a two-day debate in which 26 Members of Parliament spoke.
Some MPs expressed worry that operators will pass on the higher costs to customers and the workers themselves.
Dr Koh noted that operators are prohibited from recovering costs from workers. New platform work associations will also represent these workers’ interests, and workers have the choice of switching platforms if they feel that costs are being unfairly passed on to them, he added.
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More broadly, for employers of regular employees, the costs of providing CPF and work-injury compensation is “part and parcel of running a business”, he said. “They build these costs into their overall operating cost and decide how to price their services based on a range of factors – costs, profitability and market competition…
“It would be disingenuous to reflect and charge these costs through a separate fee component. Platform operators should think carefully before doing so.”
If operators hike fares, customers might switch to platforms where the costs are shared more equitably, or stop using such platforms altogether, he added.
In any case, these costs can be audited, noted Dr Koh. The government will be able to work out the sums per worker and determine the total true wage cost for each operator, and see if there is evidence of profiteering.
Expanding scope
Under the new law, platform workers will get the same levels of work-injury compensation and CPF contribution rates as regular employees, with the CPF contribution rate gradually rising from Jan 1, 2025.
Some MPs asked if the law, which currently applies only to ride-hailing and on-demand delivery workers, could be extended to other platform workers.
MP Louis Ng and labour MP Patrick Tay asked if the law could be expanded to other platform operators, such as those providing cleaning, plumbing and electrical services.
Nominated MP (NMP) Usha Chandradas noted that female platform workers, who are largely in sectors such as caregiving and cleaning, may not benefit from the new law.
In repsonse, Dr Koh reiterated that the new law accounts for the “vast majority of platform workers doing work that is precarious” – about 93 per cent, as mentioned on Monday – but said its scope will be reviewed in the future.
Tackling discrimination
Several MPs raised concerns that operators may discriminate against younger platform workers as employer CPF contributions will be mandatory for them – making them costlier – but optional for older workers.
Workers’ Party MP Jamus Lim said platform companies might prioritise job allocations to workers who are not contributing to CPF.
Concurring, Progress Singapore Party Non-Constituency MP Leong Mun Wai and NMP Ong Hua Han asked for greater transparency on how jobs are assigned, and raised concerns that operators may reduce workers’ incentives and bonuses.
Dr Koh replied that it would be challenging to police or audit the algorithms that operators use to assign jobs.
As for the fear of age discrimination, he noted that a greater share of platform workers will gradually be covered by the requirement for employer CPF contributions.
This is because the law takes a cohort-based approach, with the CPF changes being mandatory for workers born on or after Jan 1, 1995 – so over time, more and more workers will fall into this group.
Added Dr Koh: “Therefore, it is in the interest of platform operators to treat all platform workers fairly, regardless of whether they opt in or are in the mandatory cohort.”
Conversely, in response to some MPs’ calls to make CPF contributions mandatory for all workers, Dr Koh said that it is optional for older workers because they may already have other plans to finance their housing and retirement needs.
Separately, NMP Neil Parekh asked how existing contracts will be affected and how conflicts between the law and platform work agreements will be resolved.
Dr Koh replied that the legal obligations of operators and workers will supersede existing contractual provisions. It is therefore in the operators’ own interests to ensure their agreements reflect the new obligations.
Both the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF) support the new protections.
“The law is a significant win for platform workers, and is an important milestone for NTUC’s work in championing their interests,” said secretary-general Ng Chee Meng, after the Bill was passed.
SNEF said it will continue its role of representing platform operators, to advocate for their interests and foster a harmonious and productive relationship between operators, workers and the government.
