‘Whether they are formal employees, self-employed or platform gig workers, all workers deserve decent work and adequate social protection,’ says Dr Mohammed Azman Aziz.
IN an article published in March this year, I outlined PERKESO’s initiatives to expand social protection coverage for the self-employed, particularly gig or platform workers in the country.
Unregulated growth of the platform economy led to an influx of informal workers (workers without fundamental employment rights and protection) – raising concerns of inequality between formal and informal gig workers, and rising levels of vulnerability among informal workers.
According to the International Labour Organisation (ILO), almost 42% of informal gig workers in developing and emerging nations are working poor.
To address this pressing issue, the International Social Security Association (ISSA) presented a technical paper on Providing Adequate and Sustainable Social Protection for Workers in the Gig and Platform Economy at the recent G20 Labour and Employment Ministers Meeting 2023 in Indore, India.
The policy recommendation aims to provide comprehensive protection to gig workers and support the transition of workers from the informal to the formal economy.
The technical paper resonates with ILO’s recommendation R204: Transition from the Informal to Formal Economy back in 2015 which outlined critical strategies to achieve decent work and productive employment for the self-employed.
Besides social protection for gig workers, another path to support informal workers’ transition to the formal economy is by fostering skills development and encouraging lifelong learning.
Due to low barriers of entry, individuals with limited educational qualifications and no employment experience have access to gig work through the rise of the digital platform economy.
While the digital platform economy provides an avenue for employment among the jobless and underemployed youth, their career and social mobility remains uncertain in the long term.
Many gig platforms – particularly those involving e-hailing drivers – entail small-scale services that often require low-skilled and routine tasks.
On Feb 17 this year, the Department of Statistics Malaysia (DOSM) shared that a survey it had conducted found over 47.56% of p-hailing drivers had education levels of SPM or lower. (P-hailing is defined as services involving the delivery of food, drinks and parcels using motorised vehicles.)
P-hailing drivers may find themselves facing risks of deskilling in the long term due to limited career pathways as well as lack of skills development. In view of this, PERKESO introduced the Bina Kerjaya initiative for their career development as well as transitional opportunities from formal to informal employment. – CHAN TAK KONG/The Star
The implication of limited career pathways as well as skills development are concerning, as these p-hailing drivers may find themselves facing risks of deskilling in the long term.
The survey also reported that more than a quarter of respondents earned below the minimum wage and 97.71% were youths aged 15 to 30 years.
This highlights the alarming reality that young individuals are more likely to be trapped in jobs with minimal salary, little job stability, inadequate protection and poor working conditions.
To tackle this issue head-on, PERKESO introduced the Bina Kerjaya initiative – a comprehensive career development programme aimed at informal workers, especially gig workers with academic qualifications of SPM and below.
The goal is to offer formal opportunities to enhance their qualifications and skills through Recognition of Prior Experiential Learning (RPEL), micro-credentials or professional training provided by recognised bodies such as ACCA, BOE and MIA.
In addition, PERKESO provides financial allowances for a three-month duration, serving as replacement of income for the participants.
PERKESO also offers employment services via MYFutureJobs, which strives to connect them with formal job opportunities and help these workers in exploring career development options.
To date, more than 205,000 gig workers are protected under PERKESO and over 800 informal gig workers registered for Bina Kerjaya for career development as well as transitional opportunities from formal to informal employment.
In a nutshell, I am writing to emphasise the gaps in the growing digital economy that we must address, together.
PERKESO continues its efforts to increase access to both social protection and employment services for informal workers and unemployed jobseekers – in line with Ekonomi Madani.
Ultimately, whether they are formal employees, self-employed or platform gig workers, all workers deserve decent work and adequate social protection.
DR MOHAMMED AZMAN AZIZ
Group Chief Executive Officer
PERKESO
