Consumers want fast and cheap delivery. What does that mean for Singapore’s parcel delivery workers?

As local workers exit the industry, delivery personnel say more foreign workers have stepped in – and some are operating without proper permits.

In February, CNA’s Talking Point reported on the surge of unlicensed delivery drivers on the roads. 

The Ministry of Manpower said it receives an average of 40 complaints annually regarding suspected illegal parcel delivery work. However, most prove unsubstantiated, with the foreigners typically being legitimate work pass holders employed by delivery companies.

“Where there are cases of foreigners performing platform work illegally, we will take action as this compromises the livelihoods of local platform workers,” a ministry spokesperson said.

Under the Employment of Foreign Manpower Act, foreigners doing platform work illegally face a fine of up to S$20,000, imprisonment up to two years, or both. Locals who abet them face identical penalties, and the foreigners may be barred from Singapore. 

WHAT IS BEING DONE

According to MOM, 15,300 Singapore residents worked regularly as delivery platform workers in 2024, covering both food and parcel delivery. The authorities do not track parcel delivery workers separately, as platform workers often switch between different delivery types.

The new Platform Workers Act that took effect earlier this year extended protections to ride-hailing and delivery platform workers, including work injury compensation, Central Provident Fund (CPF) contribution and representation rights. 

Last-mile workers engaged directly by courier platforms now receive better protection. Those working under subcontractors may also qualify for Employment Act coverage if their arrangement resembles an employment relationship, said Adjunct Associate Professor in Practice Terence Ho from NUS’ Lee Kuan Yew School of Public Policy.

However, workers informally engaged by subcontractors may fall through the cracks, qualifying under neither Act. It remains unclear how many delivery workers operate in this grey zone. 

“What could help is to step up worker education on their rights, and the risks of informal employment. They should be encouraged to seek formal employment contracts with subcontractors or to be directly engaged by platform companies,” said Adj Assoc Prof Ho.

Professor Agarwal Sumit, the Low Tuck Kwong Distinguished Professor of Finance, Economics and Real Estate at NUS’ business school, said a “more honest system” is needed.

“If consumers want instant delivery, they should pay for the true cost – including the human cost,” he said, adding that companies could nudge people toward “eco-delivery” slots that batch orders efficiently.

“And most importantly, workers need rest breaks, safety nets and predictable income, not just app-based incentives.”

The National Delivery Champions Association (NDCA) can legally represent parcel delivery workers who accept jobs through platform operators for issues like payment disputes, said executive secretary Andy Ang. For jobs arranged directly with companies, workers can seek help from the National Trades Union Congress’ (NTUC) affiliated unions and associations.

Most major parcel delivery platforms including Lalamove, GogoX and uParcel have accorded recognition to NDCA. The association is currently in talks with other operators, Mr Ang said.

Some companies have taken steps to improve conditions. Delivery firm uParcel now pays CPF contributions to all platform delivery workers and has increased subcontractor earnings by 2 to 4 per cent per parcel. Workers who receive positive customer feedback earn an additional S$5 per compliment.

SingPost said worker welfare and safety remain a “top priority”, and it collaborates with unions and conducts regular engagement sessions. Delivery personnel are not held personally liable for losses, damages or delays occurring under “normal operational circumstances”.

Major courier companies Ninja Van, J&T Express and Shopee’s SPX Express did not respond to queries.  

Former part-time walker Ms Poh said stronger protections are urgently needed – starting with reducing the “customer is king” mentality.

“There have been instances where my and my mother’s self-esteem was trampled on due to rude customers who verbally abused us, and there was nothing we could do about it for fear of being reported by them,” she said.

Last-mile workers sort and ensure every parcel reaches its destination, yet some look down on them for performing what is perceived as menial work, she added. “It is very unfortunate that some look down at them for doing menial tasks without understanding their importance.”

Delivery contractor David said that change must start with the courier platforms. 

“We can’t say that there’s nothing can be done. We can say that we can always improve,” he said. “If they can’t change from the top, they will not be able to do anything for us also.”