THE government has urged Foodpanda, the online food-delivery company, to revert to its old pay scheme that suited all of its riders, said Human Resources Minister M. Kula Segaran.

Cabinet today also decided to form a committee involving three ministries to look into amending laws to protect workers in the gig economy, he said.

Kula, in a statement, said he met with the management of Foodpanda Malaysia Sdn Bhd, namely managing director Sayantan Das and head of marketing Fabian Emanuel today after its riders went on strike recently.

“Foodpanda has confirmed that the company will monitor the new pay scheme that has been put in place in a few states before deciding if they can revert to the old scheme.

“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,” said Kula.

On Monday, Foodpanda riders in a few states went on strike to protest against the new payment scheme which began that day.

About 130 riders in the Klang Valley also held a brief strike and demonstrated outside the Foodpanda office in Kuala Lumpur to show solidarity with riders affected by the change.

The new system removes the riders’ RM4 hourly wage and replaces it with fees per delivery of between RM4.50 and RM7, which is RM3 to RM5 more than before.

Riders also get a RM100 incentive if they work 60 hours a week and an extra RM1 per order for all orders between 11pm and 9am daily.

Touching on the special committee on gig economy, Kula said the committee will comprise of his ministry along with the Youth and Sports Ministry and the Domestic Trade, Cooperatives and Consumer Affairs Ministry.

His ministry has been conducting consultations with stakeholders on the gig economy and necessary amendments will be made the law, he said.

“This will be brought to cabinet for deliberation. The ministry always strives to ensure that the rights and welfare of workers are taken cared of without compromising the interest of employers,” he said.

Last night, Youth and Sports Minister Syed Saddiq Syed Abdul Rahman said new laws are needed to protect the welfare of workers in the gig economy. – October 2, 2019.