Riders strike - Foodpanda in talks with gov't

Foodpanda said it is now engaged in talks with the government over its riders' unhappiness with a revised payment scheme that has seen the latter launch a strike.

Until then, Foodpanda public relations officer Lisa Santa Maria told Malaysiakini the company won't be releasing a public statement on the matter.

"Wait first, we're in discussions with the government. As the discussions are ongoing, we can't make public statements yet," she said when asked to comment on the strike.

A statement, she added, will come this evening at the earliest.

Santa Maria said the food delivery services company is also engaging with Youth and Sports Minister Syed Saddiq Abdul Rahman.

Yesterday, Syed Saddiq (below) issued an open invitation for Foodpanda riders to gather at his home in Petaling Jaya to discuss their plight with him.

The Muar MP said he wanted feedback which he will then raise at the cabinet meeting tomorrow.

Meanwhile, the Human Resources Ministry said it has taken note of the dispute between Foodpanda and its riders and had begun engaging the latter yesterday.

It added that the Industrial Relations Department and Labour Department will be meeting with Foodpanda's management this evening to hear their explanation on their riders' complaints.

"The Human Resources Ministry will ensure a win-win situation between the riders and the company.

"The ministry always emphasises that the welfare and protection of workers in the gig economy should be protected," it said in a statement.

The ministry added that Human Resources Minister M Kulasegaran will also raise the matter in the cabinet.

No more fixed hourly pay

Previously, Foodpanda riders were paid a flat rate of RM4 per hour and earned an additional commission for every order. The commissions range from RM3 to RM5 based on the rider's performance.

The new scheme does away with the flat-rate hourly pay and instead sees an increase in the commissions for every order now ranging between RM4.50 and RM7.

“This system ensures that riders who want to work more have a high volume of deliveries available to them and vice-versa," Foodpanda managing director Sayantan Das said, according to Bernama.

"As riders work with Foodpanda on a freelance basis, the revised scheme enables them to earn more income based on the orders they accept," he added.

Das said there was also an RM100 bonus for riders who completed 60 hours a week and an extra RM1 per order for deliveries accepted between 11 pm and 9 am.

There was also an added bonus for those who completed 80 deliveries during their first week.

In that respect, the new pay scheme does pay out more per order compared to the current rate.

However, Oriental Daily reported that riders had complained of waiting two to three hours without receiving any orders.

"This means they cannot earn their delivery fee. So, under the new scheme, their total income will be reduced.

“In comparison, the status quo provides a pay of RM4 per hour, providing them with a basic income even if they do not receive any orders,” the Chinese daily reported. - Mkini