Drivers in Cebu, Philippines, are staying strong as Foodpanda challenges a ruling by a government agency that determined they are employees of the corporation and must receive around $128,000 in lost wages.
Foodpanda is appealing the decision the National Labor Relations Commission (NLRC) issued in September that required the company to reinstate a 2018–2020 compensation plan that cut driver’s pay by more than half. The ruling also stated that “with no ability to negotiate or alter their fees, riders are more like employees receiving a standard wage rate than independent contractors.”
Foodpanda is challenging a court ruling determining drivers in Cebu are employees who must receive decent pay, safety and health protections and health care.
Credit: Solidarity Center / Miguel Antivola
As with other app-based rideshare and passenger delivery corporations around the world, Foodpanda seeks to classify workers as independent contractors to avoid labor laws requiring pay, safety and health protections, and health care.
“For the five years I’ve worked for Foodpanda, they haven’t offered any type of leave or financial support for medicine,” said Abraham Monticalbo, Jr. The RIDERS-SENTRO (National Union of Food Delivery Riders) member described his experiences working for a company that is not required to adhere to labor protections: “We only get paid when we get an order. If you don’t get bookings, you don’t get paid.”
Foodpanda’s appeal “is just a small amount for the company, yet they’re being stingy with the riders. It’s clear that they don’t really care about our well-being,” Monticalbo said at a union press conference.
Seeking Fairness on the Job
The NLRC ruling on Foodpanda and Delivery Hero Logistics Philippines, Inc., would mean “we can finally receive our earnings that should have long benefited our families and ourselves,” Monticalbo said. “Because of our win, we receive justice.”
The Cebu Foodpanda union chapter of RIDERS-SENTRO has sought fair wages and transparency in the Foodpanda app on scheduling, compensation and suspension. In April, more than 200 Filipino app-based delivery riders took part in a unity ride around Cebu province to protest wage theft.
The Foodpanda app–via the company–sets the rules and is unaccountable to drivers, unilaterally updating acceptance rates, special hours and more. “If you are suddenly tagged for suspension and you follow due process in the app as we were instructed, you will get suspended before they take any action,” said Monticalbo. “Even if you do it right, the suspension is still ongoing. We can’t do anything about it since the tag is still in the system.”
Like Foodpanda, many app-based companies often deploy a “bait-and-switch” tactic, offering benefits to riders only to change the terms later.
“Management treated us well before. If I can compare it to what’s happening now, it’s so far off,” said Monticalbo. Drivers still do their job “because they already left their previous jobs. If they don’t deliver, they don’t earn.”
After the ruling supporting drivers, RIDERS-SENTRO invited the company to enter into discussions for a collective bargaining agreement. With a union, said Monticalbo, the riders are confident of their ability to win their rights on the job even with Foodpanda’s appeal
“Because of the union, we have the fighting spirit for this. We realize our power, our rights.”