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App-based 'ojek' drivers strike over low pay

Source
Reuters - August 30, 2024

Stanley Widianto and Johan Purnomo, Jakarta – Over 1,000 ride-hailing drivers staged a strike in several cities on Thursday to protest their low pay, calling on the government to provide more protection against what they said were unfair practices by on-demand services companies.

Drivers wearing their trademark green jackets gathered in Jakarta outside the Communications and Information Ministry and near the offices of Indonesia's largest technology company GoTo and Southeast Asia's biggest ride-hailing and food delivery firm Grab.

Motorcycle taxis are ubiquitous across the country, including in the capital Jakarta, known for some of the world's worst traffic congestion.

The protests prompted some complaints on social media over slow services.

A spokesperson for GoTo's ride-hailing unit Gojek said on Thursday that its operations were running as normal, and that it was open to drivers' input.

Grab's tariffs were designed to ensure stable demand for its services, while keeping in mind drivers' earnings, said Tirza Munusamy, public affairs chief of its Indonesian unit.

The Singapore-based company did not respond to a query about whether the strike disrupted its operations.

Drivers wanted the firms to raise the share they get for every trip from 80 percent now, and for the government to give special status for their terms of employment so they had more bargaining power over fees, said Andi Kristiyanto, a representative of the National Online Taxi Coalition that organized the protest.

Wandi said he worked for 10 hours every day as a driver but made less than Rp 150,000 rupiah (US$9.73) most days, meaning his daily income is below Jakarta's minimum wage of Rp 5 million.

"We want platforms to listen to us," he said.

GoTo and Grab offer passenger transportation, food delivery and other services in several Southeast Asian countries, and have a combined market capitalization of around $18 billion.

The companies recognized their drivers as partners so they did not have the legal obligation to set minimum wages, pay social security and health insurance or limit work hours, said Nabiyla Risfa Izzati, a labor law lecturer at Gadjah Mada University.

"It's right to push the government so it is the one that regulates the companies," she said, adding it needed to set the price floor and ceiling for drivers across all industries, including on-demand services.

The Manpower Ministry did not immediately respond to a request for comment, while the Transportation Ministry said it did not regulate fees and urged the platforms to listen to drivers.

Source: https://www.thejakartapost.com/business/2024/08/30/app-based-ojek-drivers-strike-over-low-pay.htm

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