KLANG MP Charles Santiago today called on the government to recognise the status of the country’s estimated 160,000 informal workers in the gig economy, and make it mandatory for their employers to give them adequate social protection. 

He said in light of the number of deaths and serious injuries involving food delivery drivers and riders that had grown in prominence during the Covid-19 pandemic, the government must make them part of the national social protection system. 

Santiago said a 2020 survey conducted by a research group, The Centre, involving more than 400 e-hailing and delivery drivers, found nearly a quarter or 22% of them, do not have any form of social safety net. 

“Be it life and health insurance, emergency savings, insurance against social setbacks or retirement savings,” he said in a statement. 

He proposed the social protection package for them should include “crucial issues” like minimum wage, insurance coverage, Employees’ Provident Fund (EPF) deductions and Social Security Organisation (Socso) coverage. 

“They should all be made compulsory. In this way, informal workers can access the employment insurance scheme, accident and health insurances and retirement savings,” he added. 

He said Grab Malaysia did offer EPF contributions of 5% on the amount contributed by selected driver-partners, subject to a maximum of RM80 a year. 

He added that both EPF and the Socso also allow gig workers to contribute voluntarily under several schemes. 

“(But) these should only be perceived as initial steps in building a long term and sustainable social protection system for informal workers including e-hailing delivery riders,” he said. 

The sustainable social protection system must effectively cushion these vulnerable workers during a crisis, he added. 

“The recent death of the GrabFood rider still haunts me. He was only 31 and according to news reports, the breadwinner for his family.” 

The MP said the incident was a wake-up call to him on the vulnerable nature of precarious informal work. 

He claimed last year, about 30 delivery riders died at work while another 150 met with accidents in March and June.

“They work under vulnerable conditions and suffer from a lack of comprehensive social protection mechanism while at work.”

The government and employers must do more for gig workers, Santiago said. – January 8, 2021.