Home Economy Holiday surge takes toll on platform workers

Holiday surge takes toll on platform workers

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PHILIPPINE STAR/EDD GUMBAN

By Chloe Mari A. Hufana, Reporter

PLATFORM WORKERS are left grappling with unrelenting schedules during the holidays, facing mounting health risks and enjoying insufficient protections, a delivery rider association said.

Geoffrey P. Labudahon, national coordinator of RIDERS-SENTRO, said the increase in bookings or deliveries is not translating to higher income with delivery fees so low.

“There may be many orders, but the delivery fee is low… For instance, in one delivery job, you might earn around P18 to P25. On a regular day, you might get P38, P30 or P29 for similar jobs… But during times with high delivery volumes, it’s P18, P20 or P25 — many jobs but small fees,” he told BusinessWorld by telephone. 

“This means more work, more gas consumption, but it doesn’t necessarily mean the delivery rider earns significantly more.”

Adding to the financial strain, riders face rising fuel costs and maintenance expenses. Some platforms also fail to provide insurance coverage, leaving riders vulnerable in case of accidents.

The pressure to maximize income during the season leads to excess fatigue among riders, with many working long hours despite illness or adverse weather, Mr. Labudahon said, adding that some of their members have been killed in accidents.

He urged companies to pay fair delivery fees and take out comprehensive insurance for riders.

He also called for improved dialogue between unions and management to address the systemic issues plaguing gig workers.

Fairwork Philippines, an advocacy affiliated with the Oxford Internet Institute and the WZB Berlin Social Science Center, reported that in 2023, the conditions of gig workers at Philippine ride-hailing and delivery platforms have not improved since 2022, citing issues like financial insecurity, safety risks, and limited protections.

According to the 2022 edition of the Fairwork Philippines study, around 500,000 gig workers are employed in the ride-hailing and delivery industries.

However, Fairwork Philippines Co-Investigator Virgel C. Binghay, a professor at the University of the Philippines-Diliman School of Labor and Industrial Relations, noted that the number is hard to validate because workers constantly hop from one job to another.

In a video conference, he urged the Philippine Statistics Authority to start collecting data about the number of gig workers, specifically platform workers.

According to Mr. Binghay, the possible pathways for better working conditions for riders include treating them as regular employees, giving them social security and health insurance coverage.

Another approach could be a “hybrid model” which would classify them as independent contractors while providing some benefits, such as rest days and social protections.

Yet another pathway might be gig worker cooperatives, which could give them more bargaining power.

Mr. Binghay called on companies to better forecast demand to keep an appropriate number of riders available.

“Workforce planning involves studying the ratio and proportion between work demand and the number of workers needed. At the current pace, it seems like no action is being taken in that regard,” he said.

“It’s important to analyze a particular platform’s demand for services. By utilizing historical data and identifying correlations, they can determine the exact number of workers they actually need. One of the current issues is that they are accepting too many workers,” he added.

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