Govt maintains neutral stance in determining wage rates for riders

KUALA LUMPUR: The government has maintained a neutral stance in determining the wage rates given by e-hailing or p-hailing companies to their riders.

Realising that the wage rates for riders are often an issue in the gig industry, Communications Minister Fahmi Fadzil said the government's focus is more on ensuring that these riders are given better social protection.

"It is important to emphasise that, at this time, these companies (e-hailing and p-hailing companies) are not licenced by the government like telco companies.

"So from one point of view, the middle path we have chosen is to gather various parties to sit and discuss to find a solution together.

"The government has not made any decision or stance to interfere directly in some matters (related to wage rates), except when these companies are licenced, in which for the time being they are not (licenced)," he told reporters after the launch of P-Hailing Rahmah Package today.

Therefore, said Fahmi, any decision related to the wage rates issue is still subject to the decision of the service provider, apart from the riders themselves.

"Perhaps if the riders from one company feel that there is another company that offers a better wage rate, then they can migrate to that company.

"The basic thing here is that workers must be taken care of in terms of their social security, where MDEC (Malaysian Digital Economy Corporation) and the ministry examine the benefits that riders can get, for example under the Social Security Organisation.

"Although they are in the gig economy sector, on average some of them have been working with these companies for five to six years. Hence, social security must be there," he said.

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