PUTRAJAYA should not meddle in the affairs of private companies unless it is to act as a mediator to resolve conflicts between employers and employees, said industry players.

They were responding to the conflict over online food delivery company Foodpanda’s new wage system, which led to many riders taking to the streets recently to protest against the change of rates.

The riders’ complaints earned the sympathy of Youth and Sports Minister Syed Saddiq Syed Abdul Rahman, who urged the company to revert to its old pay scheme.

Human Resources Minister M. Kula Segaran, too, intervened, asking Foodpanda to revert to its old scheme.

Foodpanda, however, rejected their calls and said it was a business decision to change to the new wage system.

SME Association Malaysia president Michael Kang said as long as the decision to improve the wage system or to implement a productivity linked wage system is lawful, the government has no say in the decision-making process and business model of a private entity.

The government should only step in if the company had run afoul of the law, he told The Malaysian Insight.

Putrajaya could instead become a mediator to facilitate communication between the management and its riders to resolve the problem, he said.

Malaysian Employers Federation executive director Shamsuddin Bardan told The Malaysian Insight that the government can set policies but can’t decide on how private businesses should run.

“The guiding principle that needs to be observed is that the government should not be deciding on how a business should run.

“The government can set the policies but it cannot decide on how the operations are to be conducted,” he said.

“Issues, such as how people should be remunerated, should be best left to the market forces,” he said while noting that Foodpanda riders have a choice to decide whether they want to continue with their job.

On that note, he said the government should set up a mechanism on how the dispute can be resolved.

Following Foodpanda’s decision to stick to its new wage scheme, Syed Saddiq tweeted that consumers can bring down arrogant businesses just as they can vote out elected representatives.

Although the minister did not mention the company, he held meetings with Foodpanda riders who said the new remuneration scheme is unfair.

Riders allege it would halve their earnings.

The company, however, argues that the new system would lead to higher revenue for riders based on their daily deliveries.

Syed Saddiq’s tweet also resulted in fresh calls on social media to boycott Foodpanda.

Others, meanwhile, criticised Syed Saddiq for intervening in what is a purely commercial decision undertaken by a private business.

Prime Minister Dr Mahathir Mohamad distanced himself from Syed Saddiq’s remarks, saying that it is not the government’s business.

The new scheme, which increases payments per delivery, replaces a system of fixed hourly payments.

Under the new scheme riders get paid between RM4.50 and RM7 per delivery, an increase of RM3 to RM5 from the previous payments. The RM4-per-hour wage no longer applies.

Foodpanda is also offering an incentive of RM100 if they work 60 hours a week, and an extra RM1 per order for all orders placed between 11pm and 9am. – October 20, 2019.