KUALA LUMPUR, Oct 2 — The Cabinet has approved the formation of a tripartite ministerial committee to tackle issues arising from the booming gig economy sector, following a recent strike by Foodpanda delivery riders that revealed several issues, particularly related to the remuneration system for its workers.
Human Resources Minister M. Kulasegaran said that he has been engaging stakeholders in the gig economic sector and announced that “necessary amendments will be made to the law on gig economy”.
“It was decided in Cabinet today that three ministries; Human Resources Ministry, Youth and Sports Ministry and the Domestic Trade, Cooperatives and Consumer Affairs Ministry, will form a committee to look into this.
“The ministry always strives to ensure that the rights and welfare of workers are taken care of, without compromising the interest of employers,” Kulasegaran said in a statement.
He added that Foodpanda management had also informed him during a meeting that the company would carry out its new pay scheme, which has been enforced in states outside of the Klang Valley, and would monitor the system before deciding to revert back to its old payment policy for its riders.
Foodpanda’s recent revision of its payment and incentive schemes for riders based outside the Klang Valley has led to discontent, since the new system is perceived to decrease their potential earnings.
Despite the company stating this will not be the case and that the new system is meant to offer more flexibility to its 12,000 riders in Malaysia, some riders in locations, including Negri Sembilan, Johor, Melaka and Sabah, are planning to go on strike for three days to a week in protest against the new system.
“They have informed that their riders from all states except Johor have accepted the new pay scheme that works on an efficiency model; the more deliveries, the more the rider makes. Nevertheless, the government urges the company to revert to the old pay scheme that suited all of their riders,” Kulasegaran added.
Yesterday, Youth and Sports Minister Syed Saddiq Abdul Rahman proposed a new law to regulate the gig economy and provide better worker protection in the long-run.
The Muar MP came up with the idea last night, after a near two-hour talk with some 100 food delivery riders from two major companies, Foodpanda and Grabfood, who highlighted their problems as freelance workers in a gig economy.
He also promised to raise it at the Cabinet meeting today.
In his statement shortly after, Syed Sadddiq however refuted Foodpanda’s claim that riders in other states except Johor, have agreed to the new payment scheme.
He said riders from Penang and Negri Sembilan had also objected to Foodpanda’s new decision.
He added that the government will find ways to ensure a more competitive market for stakeholders of this sector, especially when there are parties alleging that they control the market.
