{"id":5189,"date":"2024-03-06T10:20:02","date_gmt":"2024-03-06T02:20:02","guid":{"rendered":"https:\/\/www.boasecohencollins.com\/?p=5189"},"modified":"2024-03-06T10:20:03","modified_gmt":"2024-03-06T02:20:03","slug":"a-labour-dispute-on-our-doorstep","status":"publish","type":"post","link":"https:\/\/www.boasecohencollins.com\/zh-hans\/%e7%bd%91%e8%aa%8c\/a-labour-dispute-on-our-doorstep\/","title":{"rendered":"A labour dispute on our doorstep"},"content":{"rendered":"\n

Hong Kong, 6 March 2024:<\/strong> Feeling peckish? UK-based Mexican eatery chain Wahaca will bring a cricket salsa<\/a> \u2013 yes, we\u2019re talking insects here \u2013 hopping to your door. Aussie fitness fanatics can fuel their bodies with so-called workout meals<\/a> from My Muscle Chef. In the US, Chicago-based Entr\u00e9e serves up Michelin-quality fare<\/a> at home, complete with curated music playlist to set the mood and virtual ma\u00eetre d’ for 24\/7 assistance.<\/p>\n\n\n\n

Worldwide, the food delivery app industry is witnessing phenomenal growth, driven by smartphone ownership, busy lifestyles and, of course, the recent pandemic. According to Statista<\/a>, the global online food delivery market will generate US$1.2 trillion this year. Niche apps now cater to all tastes, desires and dietary needs.<\/p>\n\n\n\n

But this boom business is turning spicy in Hong Kong, where hundreds of delivery riders are on strike<\/a> each lunchtime. They allege major platform operators Foodpanda and Deliveroo, plus emerging rival KeeTa, have changed fee calculations and contractual terms, leaving them worse off. Foodpanda admits to making \u201cslight adjustments to the weightage of service fee components\u201d while Deliveroo insists it is \u201cre-evaluating business practices to ensure riders\u2019 needs are met\u201d. Right.<\/p>\n\n\n\n

You have to feel for the couriers, many of them of South Asian heritage, who keep Hongkongers from going hungry amid trying conditions: long hours, traffic congestion, stifling summer humidity and the occasional dose of racism<\/a>. They have asked the government to intervene, causing another headache for the Labour Department after it has been dragged into previous disputes. Since last year, it has set up a liaison group to improve communication between platform operators, riders and other stakeholders, while it has also commissioned the Census and Statistics Department to conduct a survey on working conditions in the sector.<\/p>\n\n\n\n

Typically, riders sign agreements with the platforms, but these are not employment contracts. Deliveroo, for example, has a \u201csupplier agreement\u201d, whereas Foodpanda takes on couriers as \u201cindependent contractors\u201d. Strike leader Nervin Deol (not his real name) tells the South China Morning Post<\/em> their hourly rate and per-order fee have fallen over the years. He says earnings now vary from order to order and riders are clueless about how fees are calculated.<\/p>\n\n\n\n

As the standoff continues, workers\u2019 rights advocates are questioning what \u2013 if anything \u2013 has changed following a landmark ruling<\/a> by the Labour Tribunal last summer that couriers should be classed as employees. On that occasion, six workers from the delivery platform Zeek, which went bust in December 2022, were deemed eligible for labour rights and able to claim ex gratia payments from a wage protection fund. The Labour Department subsequently received more than 300 claims for wage arrears related to Zeek and has made 278 payouts.<\/p>\n\n\n\n

So, progress? Of sorts. Some cases have been deemed ineligible for being logged more than six months after the last day of work. Yet the Riders\u2019 Rights Concern Group insists this is a point of ambiguity<\/a>, highlighting that couriers are still listed on the Zeek app and the firm has yet to be officially wound up. \u201cI just want my money,\u201d says one rider who is owed HK$80,000. The Labour and Welfare Bureau, meanwhile has told lawmakers that granting delivery workers employee status across the board \u201cmay not be conducive to the development of the industry\u201d.<\/p>\n\n\n\n

The food delivery sector is no stranger to Hong Kong\u2019s regulators. Foodpanda and Deliveroo have previously upset the Competition Commission, which warned their contracts with restaurants could constitute a breach of anti-monopoly regulations. The pair have since amended their practices<\/a>, opening up the market to smaller companies. The Consumer Council, meanwhile, has highlighted that platforms charge up to 85% more<\/a> for orders compared with takeaway prices. \u201cCitizens should think twice about whether they need to order a delivery,\u201d advises chief executive Gilly Wong. She also voices environmental concerns, noting that 56 orders placed by undercover council staff came in hundreds of containers complete with plastic cutlery and bags.<\/p>\n\n\n\n

Furrowed brows at the food platforms, then. And our police are also hungry for a slice of the action. Some 23 asylum seekers have been arrested<\/a> for allegedly working illegally by using other local riders\u2019 accounts. Officers visited the offices of Foodpanda, Deliveroo and KeeTa as part of their probe.<\/p>\n\n\n\n

In closing, it should be noted there are no sweeteners<\/a> on the menu of Financial Secretary Paul Chan\u2019s latest budget, which is aimed at restoring our city\u2019s flagging fiscal health. Hong Kong is expected to log a deficit of HK$101 billion at the end of this month, almost double his earlier estimate. While he has surprised everyone by scrapping all cooling measures<\/a> restricting property deals, some are upset he has dispensed with consumption vouchers and subsidies for electric bills and university entrance exams. Chan believes short-term pain is necessary for long-term gain and has asked for \u201cunderstanding\u201d.<\/p>\n\n\n\n

Not good enough, fumes our old friend and social welfare lawmaker Tik Chi-yuen<\/a>, who insists the city\u2019s poorest will be hardest hit. Like our food delivery riders, he finds the latest belt-tightening measures rather tough to stomach.<\/p>\n\n\n\n

Until next time, everybody!<\/p>\n\n\n\n

Colin Cohen<\/strong>
Senior Partner<\/strong>
Boase Cohen & Collins<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Hong Kong, 6 March 2024: Feeling peckish? 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