Food delivery riders want flexibility, not permanent employment

Food delivery riders want flexibility, not permanent employment

For many, the gig economy offers an opportunity to earn extra income while allowing them to pursue their own passions and spend time with family.

P-hailing riders say they are not tempted by promises of a fixed salary, annual leave and other benefits.
PETALING JAYA:
Despite offers of permanent employment by companies, the message from food delivery (p-hailing) riders is loud and clear, “this is not what we want”.

Several riders interviewed by FMT refused to be bought over by promises of a fixed salary, annual leave and other benefits.

Instead, they said, the government and food delivery companies need to remember that gig economy workers do not want to be tied down by a rigid employment system.

For many, the gig economy offers an opportunity to earn extra income while allowing them to pursue their own passions as well as spend time with family.

“If we were to be employed on a permanent basis, then we might as well go back to normal fixed employment (with) no time for the family and rigid working conditions. Don’t complicate things, otherwise riders will go on strike,” said p-hailing rider Siti Nur Aisyah Herman Shah, 29.

A fellow rider, Nur Izzati Amran, also preferred the flexibility afforded by the gig economy.

“Delivery riders have a more flexible schedule. If there’s an emergency, we can take a short break and continue later. No strings attached,” she told FMT.

Proposals to offer riders permanent employee status have become a topic for debate, following reports that the government intends to study and regulate the gig economy.

The transport ministry has also mooted plans to amend three Acts to protect the welfare and interest of riders.

Notwithstanding this, the reality is that many riders are able to earn between RM4,000 and RM7,000 a month even without fixed employment or higher education.

A total of 400,000 food delivery riders have now become an essential segment of the nation’s gig economy, supporting giant firms like Grab and Panda.

These companies have also become important contributors to the economy through tax collected on their profits, besides providing job opportunities, especially for youths.

However, some of the suggestions put forward to improve the welfare of riders do not reflect the reality of “what exactly do riders want?”

Transport minister Wee Ka Siong recently announced a requirement for riders to obtain a vocational licence, which entails them undergoing a short course and paying a specified fee.

Last Friday, human resources minister M Saravanan also announced that his ministry is planning to introduce a social security scheme to better protect the welfare of p-calling and e-calling workers.

The important question remains as to what extent these transformations will holistically balance the gig economy workers’ welfare against the interest of companies that have invested billions of ringgit to create a competitive business model.

These companies have also played a role in fulfilling the needs of hundreds of thousands of people looking for side income, especially when the country’s economy is still recovering after the Covid-19 pandemic.

Economist and muamalat expert Umi Hamidaton Mohd Soffian Lee of Universiti Sains Islam Malaysia (USIM) said one cannot turn a blind eye to the companies’ interest.

She said they are able to provide a lucrative income to their riders because their business model allows them to do so.

“Some riders do not want to lose freedom and flexibility. There is no need to stifle their freedom by implementing an employment system or making it a permanent job. Otherwise, they’re better off in fixed-term employment,” she said.

She said the issues faced by gig economy workers must be scrutinised instead of simply championing riders’ rights.

Thus, whatever policies drafted to turn riders into permanent employees with fixed terms will lead to the same question, which is, how much income can gig economy workers make?

“The salary that can be earned as a permanent employee is not the same as the income made by riders from online food delivery, which can reach between RM200 and RM300 daily.

“For the former, an individual can make RM90 and at least RM100 per day,” said Mohd Iman, a rider from Kuala Selangor, who makes deliveries within Klang.

A source from the p-hailing industry told FMT there has been no initiative by the government to engage with all stakeholders in a “serious manner” to come up with a comprehensive plan or “road map” for the gig economy.

They said that such a plan, if formulated, would surely include workers’ welfare.

“Any discussion to strengthen the sector must involve both sides and be fair and equitable. Any new ideas or policies need to be aligned with the government’s goals as per the 12th Malaysia Plan,” said Umi.

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