Fair and sustainable work futures for platform workers in the Philippines

by Fairwork Philippines, Grace Riguer-Teodosio (Department of Labor and Employment – Institute for Labor Studies), Julius Cainglet (Federation of Free Workers), Geoffrey Labudahon (Riders-Sentro), and Tobias Kuttler (Fairwork Secretariat at the WZB Berlin Social Science Center)

During its third Stakeholders Forum on 13 November 2024, Fairwork Philippines brought together representatives from government agencies, civil society organizations, platform companies, platform workers, worker unions and organizations, and members of the press and academe. The Forum was co-organized by Fairwork, in partnership with the DLSU Social Development Research Center and the DOLE Institute for Labor Studies (DOLE-ILS).

This blog post is a continuation of this conversation. It is collaboratively written by the Fairwork Philippines team with representatives from worker groups, government, and civil society as we address key issues raised by stakeholders on the issues of pay, working conditions, contracts, management, and worker representation in platform-mediated work.  

In particular, stakeholders raised critical questions about the proposed reforms in the Fairwork PH Policy Brief and the way forward in light of recent developments in platform work.

Ensure fair pay for platform workers

Fairwork has been evaluating ride-hailing and delivery platforms in the Philippines for over the past two years. Findings from the 2023 and 2022 reports reveal that these platforms have yet to meaningfully address the growing challenges faced by more than half a million location-based platform workers.

A question was raised how the principle of Fair Pay could be actualized.

Fairwork’s Dr. Soriano highlighted that riders and drivers often bear the costs of maintaining their livelihood and struggle to meet the basic minimum daily wage of P645 ($11) after costs such as gas and mobile load, as well as expenses for vehicle amortization and maintenance. One way of addressing this, Fairwork’s Atty. Gamboa suggests, is to mandate platforms to ensure sufficient bookings per worker to earn minimum wage, cost-free e-wallet systems, and immediate payment upon task completion.

Worker union RIDERS-SENTRO has its own proposals such as guaranteed pay or a standard minimum amount per booking. These proposals may differ, but they align with the objective of making platforms accountable for providing enough jobs and income to their workers. Given the big data that platforms possess, from consumer to booking data, the platform management should be able to assess which among these proposals are feasible for ensuring Fair Pay for gig workers.

Workers are essential to platforms, so are their health and safety

Aside from the lack of a secure daily income, gig workers endure the safety hazards of their everyday routes and navigate intense weather conditions like typhoons or extreme heat. Fairwork PH advocates for platforms to provide essential PPEs without shifting the costs to workers. At present, safety training is available to workers for free while branded uniforms, helmets, and bags are paid in cash or installments.

A question was also raised on what solutions can be suggested for platform companies—especially startups and SMEs that lack the financial capacity — to provide critical occupational health and safety resources for free (at scale) to workers.

Fairwork PH recognizes that not all platform companies are global giants. Startups and Social and Medium Enterprises (SMEs) lack the financial capacity to provide free safety training and PPEs. However, riders and drivers are essential to the core business of delivery or ride-hailing platforms. They warrant protection from the high risk of encountering accidents or worse, death, in performing their jobs. There are countries where governments require platforms to provide helmets for free—as key protective equipment that their workers need to be able to perform work. The provision of work-related safety equipment should be factored into a platform business’ sustainability plans.

Fairwork PH highlighted the need for a holistic pathway to change where the interests of different stakeholders in the platform economy are balanced and where the workers, who are central to the companies’ business, are valued. Government intervention can support startups and SMEs not only in creating innovations but also in applying ethical practices and sustaining human resources in its operations.

Proposed legislative action: waiting and parking areas for delivery riders

Acknowledging that workers need parking and waiting spaces especially during extreme heat or heavy rains, and that an ordinance will help them assert their right to work, a question was raised by a transportation advocate on how such ordinance can be actualized. The participant noted that many government officials refuse to remove private car parking or exclusive car spaces to make way for bike parking.

DOLE Deputy Exec. Dir. Teodosio cited that DOLE Labor Advisory No. 14, series of 2021[1] already includes a provision nudging platforms to comply with applicable occupational safety and health standards.

A provision in the Labor Advisory is the arrangement with concerned Local Government Units (LGUs) or groups of merchants in setting up designated waiting areas for delivery riders. Fairwork PH supports this in its Fairwork PH Policy Brief and further recommends the allocation of free parking space for ease of pick-up and drop-off transactions.

The challenge at hand is the implementation and support at the LGU level. LGUs, through their legislative power, have an important role in ensuring that workers in their jurisdictions have good working conditions. In Cebu City, for example, its LGU has drafted a resolution that requires food businesses to provide a waiting area for delivery riders. Hopefully, other LGUs and establishments will replicate the effort.

Apart from political will, the panelists believe in the importance of consulting different stakeholders including civil society organizations who share the same advocacies such as safe and efficient public transportation. Such a collaborative approach allows Fairwork PH to receive substantive feedback to refine its policy recommendations.

Social benefits and health insurance – a matter of worker classification

Other proposals in the Fairwork PH Policy Brief to enact the Fairwork principle of Fair Conditions are the provision of in-app emergency features, a specialized social security program, and baseline insurance terms for platform workers given their unique circumstances.

During the Forum, two delivery riders inquired about the enforcement of DOLE Labor Advisory No. 14-21 in terms of the provision of social protection to workers. They further noted that most workers shoulder these costs on their own, including the cost of PPEs.

DOLE Labor Advisory No. 14-21 covers the facilitation of registration and coverage of social benefits such as the Social Security System (SSS), PhilHealth, and Pag-IBIG (a home development mutual fund). News reports also show agreements between some platform companies and these government agencies, where platforms act as conduits to access social benefits. In this setup, gig workers are registered as self-employed and voluntarily pay their contributions; yet the responsibility of platforms in contributing to these benefits has been unclear. The insecure pay that gig workers often receive deters them from committing to their monthly contributions because more urgent work-related and personal expenses such as utilities and food are prioritized.

Establishing a clearer policy definition and adopting a more appropriate worker classification could help eliminate ambiguities in the nature of engagement between workers and platforms, while also clarifying the responsibilities of platform companies to their gig workers with regard to social protection.

According to Atty. Teodosio of DOLE-ILS, “Digital platforms have the potential to formalize domestic work, for instance, but issues remain like how to resolve complaints. This requires new solutions to address the boundaries of regulations and in practical consideration.”

It was also raised that the Kasambahay Law (Domestic Workers Act) of 2012,  is an example where domestic workers (i.e., house help, nannies, cooks), despite being part of the informal sector, are provided with benefits such as a set minimum wage, paid leaves, and insurance coverage. Is it possible for gig workers to have the same trajectory? Passing that law was a product of a long struggle to protect the rights of workers. Change is only achievable through continuing calls for reform.

Riders asked about the extent of enforceability of DOLE Labor Advisory 14-21.

Cainglet of FFW responded that an advisory’s purpose is to remind, unlike a department order or law that must be complied with. Atty. Teodosio of DOLE-ILS concurred: “It just reiterates the current tools and mechanisms in determining an employee-employer relationship as guided by the labor code.”

The advisory identified the Four-fold test, Economic Reality test, and Independent Contractor test that can be applied to determine the relationship between the delivery riders and platform companies. If the riders are deemed employees, they will be entitled to the minimum benefits as provided for in the Labor Code and other labor laws and the right to security of tenure, self-organization, and collective bargaining. Meanwhile, delivery riders who are deemed independent contractors or freelancers shall be governed by the respective contracts or agreements with the platform.

Understanding and negotiating workers’ contract

One rider working on a major food delivery platform inquired about the legality of freelance contracts, and highlighted that riders were threatened that they would lose the account access if they do not sign these contracts.

Atty. Teodosio of DOLE-ILS explained that the existing contract between a worker and a platform governs the relationship between the two. The DOLE Labor Advisory 14-21 was issued to ensure compliance with applicable general labor standards and occupational safety and health standards and better working conditions for all delivery riders in food delivery and courier activities using digital platforms. The advisory further states that a “contract agreed upon by the parties shall not be by force, duress, improper pressure, or any other circumstances vitiating consent”. Nevertheless, delivery riders retain the right to renegotiate contracts or seek legal recourse should the contract be deemed non-compliant with labor standards.

DOLE also has conciliation and mediation mechanisms in place to accommodate complaints like in the case of Lazada riders. “Labor arbiters evaluate the factual circumstances surrounding the work engagement. It is not limited to the contract,” explains Fairwork’s Atty. Gamboa. “Labels like freelancer or independent contractor conditions the minds of workers that they have limited or not entitled to any rights and benefits. It’s good that we have unions to explain that workers are not restricted by contracts alone.”

Labudahon of Riders-Sentro reiterated that the labor advisory explicitly indicates that platforms cannot force riders to sign a contract or else be threatened with loss of account access if they refuse to do so. Cainglet of FFW challenged the workers to question the agreement if they think that they’re getting the short end of the stick or if the terms and conditions were not explained clearly.

Organization and workers’ struggle for representation

The question was raised whether historical organizing experience among informal workers can inform current organizing among platform workers.

The Philippines has rich historical data on organizing a collective of informal workers. A good starting point is the case of jeepney drivers. Cainglet of FFW describes gig workers as an emerging breed of workers in the modern age of digitalization who should still be considered as workers with rights that include freedom of association.

Atty. Teodosio of DOLE-ILS echoes this. Research at the institute has worker union Riders-Sentro as one source of data. “We learn about their organizing efforts even if they are freelancers or independent contractors. Whatever their work arrangement, there should be no distinction. They are free to organize (like regular employees do) and we support that. Once they are organized, they can be recognized.” This support is evident in the launching of worker unions organized by Riders-Sentro in different cities where DOLE representatives participated.

One worker inquired about the procedure of DOLE’s channel for assistance requests, and specifically the role of union membership and support in the procedure.

DOLE implements SEnA, short for Single Entry Approach, a standardized handling of requests for assistance. It was designed to provide an accessible, speedy, impartial, and inexpensive settlement procedure of all labor and employment issues through a 30-day mandatory conciliation-mediation.[2]

A rider filing a case in SEnA is asked if the worker belongs to a union or not to determine if the worker has an organization or union that can represent them in the case and provide support, as well as to identify if there is a collective bargaining agreement that can serve as the basis for discussions. Cainglet of FFW shares that this step identifies the regional office that has jurisdiction over the case. If there is a union, the case goes to the National Conciliation and Mediation Board. If none, the case goes to the National Labor Relations Commission (NLRC).

One rider inquired about the reach and applicability of a recent Foodpanda court case in Cebu where apparently workers won.

On the cases decided by the NLRC, they are applicable and binding only to the parties of the particular case. For instance, the NLRC-Regional Arbitration Branch VII ruled the existence of an employer-employee relationship for 18 Foodpanda delivery riders. Riders wonder why this win does not apply to all Foodpanda riders in the country, to which DOLE-ILS replied that the said ruling is binding solely with respect to the specific case and jurisdiction in which it was rendered. The relationship of the delivery riders with Foodpanda is determined by the distinct facts and circumstances surrounding their case. Currently, Foodpanda has filed an appeal against the said ruling.

Labudahon of Riders-Sentro and Cainglet of FFW discussed the challenges of union members, specifically union busting as well as the gains in unionizing. Cainglet of FFW further advises that union chapters have to fight in the same way as the union members in Cebu City did to achieve similar success. “In the eyes of DOLE, platforms have different owners even if under the same company. Cebu is a group on its own, same with other cities in the country.”

Meanwhile, Fairwork’s Dr. Binghay emphasized the disparity in how platform companies benefit from their workforce while providing insufficient support. Regardless of employment classification–be it a regular employee or an independent contractor–he stressed that workers are human resources deserving of respect, assistance, and fair treatment from all stakeholders involved.

Inclusion in the Fairwork scoring process

A question was asked on how a platform company can qualify to be included in the Fairwork scoring process.

Fairwork PH will soon enter its third year of evaluating platforms in the country. In year 3, it will assess ten on-demand platforms that offer food and courier delivery, two- and four-wheel ride-hailing, and general services. Platforms interested in being included in the research can reach out to Fairwork PH via fairworkph@gmail.com. Requests will be reviewed by the Fairwork PH team and will be assessed if they can be accommodated for this round of scoring.

This blog was jointly prepared by the panelists from Fairwork Philippines (PH) Stakeholders Forum on 13 November 2024: Fairwork PH Team members Dr. Cheryll Ruth Soriano of De La Salle University (DLSU), Dr. Virgel Binghay of the UP School of Labor and Industrial Relations, Legal Consultant Atty. Jayvy Gamboa of Manila Observatory, Marge Medina, China Villanueva, and Dr. Tobias Kuttler of the WZB Berlin Social Science Center were joined by Deputy Executive Director Atty. Mary Grace Riguer-Teodosio of the Department of Labor and Employment (DOLE) – Institute for Labor Studies, Vice President for Research, Advocacy and Partnerships Julius Cainglet of the Federation of Free Workers (FFW), and National Coordinator Geoffrey Labudahon of RIDERS-SENTRO.

For more information about the Fairwork PH Stakeholders Forum, watch here.

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[1] Full text of Department of Labor and Employment Labor Advisory No. 14-21 Working Conditions of Delivery Riders in Food Delivery and Courier Services in https://dole.gov.ph/news/labor-advisory-no-14-21-working-conditions-of-delivery-riders-in-food-delivery-and-courier-activities/ or Elements of Employer-Employee Relationship Crucial in Determining Entitlement to Benefits of Delivery or Courier Riders – LVS Rich Publishing

[2] SEnA was first introduced through DOLE Department Order (DO) 107, Series of 2010 and later institutionalized through the enactment of Republic Act 10396 (or “An Act Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute Settlement for All Labor Cases,” which amended Article 228 of Presidential Decree (PD) No. 442, as amended, otherwise known as the “Labor Code of the Philippines”) providing for a 30-day mandatory conciliation-mediation for issues arising from labor and employment (i.e., governed by employee-employer relationship). Section IV of DOLE DO No. 107 (s. 2010) states that “any aggrieved worker, union, group of workers, or the employer may file a request for assistance.” Further, Section V of the said DO states that “in case of a union or federation representing a local chapter, the request shall be made at the regional/provincial/district office where the union or local chapter is registered.”