Lalamove Philippines Inc. failed to attend a second meeting before the Department of Information and Communications Technology (DICT) on May 22 to supposedly face a union of its riders who alleged that they are being shortchanged by the company’s commission system.

The riders’ union, the Coalition of Union Courier Shippers Services Philippines (CUCSSP), was initially faced by Lalamove following the former’s formal complaint lodged in DICT last May 14. The union had been seeking a resolution over their complaints for over three months now.

Lalamove is a logistics company that provides on-demand delivery services. Classified as a “Private Express and/or Messengerial Delivery Service,” the company falls under DICT’s jurisdiction. 

Insufficient Pay

Under Lalamove’s current payment scheme, a P49 base fare and an additional distance fee make up the total delivery fee, of which Lalamove then takes a 20-percent commission. But some riders have observed inconsistencies with the breakdown of the delivery fees, as the base fare is missing at times. 

“Layunin nating mapababa ang 20-percent high commission rate tungo 10 percent, makuha ang nararapat na benepisyo at insurance, at mapagtibay ang ating karapatan sa pag-uunyon,” said CUCSSP in a statement after the first hearing.

But even with correct commission computation, riders say they do not earn enough for the amount of work they put in, tracing back to Lalamove’s high cut from their payments. 

“[Kailangan] ng rider bumabad nang 12 hours for earnings of P600. Masyadong matagal yung work noon,” said a representative from CUCSSP in a text message to the Collegian.

In comparison, the daily minimum wage for eight hours of work in the National Capital Region is P610. 

Riders do not enjoy social security benefits like SSS, Pag-IBIG, or PhilHealth, either. This is despite the Department of Labor and Employment stating in a 2021 advisory that courier service riders should be considered employees, entitled to these and all benefits applicable under the Labor Code.

CUCSSP carried these calls for all transportation network company (TNC) riders during the Labor Day mobilization and subsequent nationwide booking strike on May 1, as they are all similarly affected by insufficient legal safeguards. 

No Legislated Regulations

The lack of benefits and social protection is not exclusive to Lalamove drivers. Other courier service platforms operate under similar conditions, classifying their riders as independent contractors instead of regular employees, which excludes them from receiving benefits.

But the Supreme Court had already ruled in favor of riders in a previous case between e-commerce company Lazada Philippines and its riders. 

“It is patently erroneous … to reject an employer-employee relationship simply because [their] contract stipulates that this relationship does not exist,” read the ruling dated September 21, 2022.

The court evaluated Lazada using the four-fold test and economic-dependence test. To prove an employer-employee relationship, the first test stipulates that the employer must have directly hired the employee and possess control over the payment of their wages, dismissal, and conduct.

The second test then evaluates the employee’s dependence on the employer for continued work in that specific line of business. 

Though the court ruled in favor of the riders in this instance, other TNC workers are not directly covered by any laws to prevent unfair labor practices immediately upon employment. In the case of Lalamove, to determine the employment of their rides, the company must attend the proceedings.

After all, platform work like TNC jobs must be regulated with additional guidelines beyond usual labor codes, according to the International Labor Organization, starting with guidance on the determination of the existence of an employment relationship.

CUCSSP participated in a consultation for the Magna Carta for Platform Workers being developed by women’s rights advocate Gabriela Women’s Party last April 19. The document seeks to give full protection and benefits to workers, including TNC riders. 

But the proposed law still has a long way to go before it goes into effect. For now, Lalamove riders will continue pursuing the DICT dialogues to achieve at least some immediate resolution to their current issues.

“Sa lahat ng aming mga kasamahan na riders at drivers, passenger, customers at mga taga-suporta, sama-sama tayong tumindig sa ating adhikain para sa katarungan at pagtatanggol sa karapatan,” said CUCSSP. ●