Chinese regulators meet with delivery firms, call for stronger labour rights

[August 07, 2021]  BEIJING (Reuters) - China's delivery platform companies including Meituan and Alibaba's Ele.me recently joined a meeting with government regulators on improving safety and labour rights for delivery workers.

Food delivery platforms, in the spotlight due to China's regulatory reforms, have attracted severe criticism on social media for their treatment of delivery workers, most of whom are not covered by basic social and medical insurance.

The meeting included officials from the Ministry of Public Security and the Ministry of Human Resources and Social Security, according to a Saturday notice on WeChat by the Ministry of Emergency Management, which also attended.

Firms should strengthen safety and labour rights protections, and not set performance indicators which harm the health of workers, according to the meeting.

Alibaba Group, its supermarket operator Hema Xiansheng, Dada Nexus Ltd and other firms also joined the meeting and reported on their efforts to improve safety and labour rights.

Delivery workers of Meituan and Ele.me wait for online orders at a shopping area in Beijing, as the spread of the novel coronavirus disease (COVID-19) continues, China April 15, 2020. REUTERS/Tingshu Wang

Investors believe a major shift is under way in China as the government aggressively pursues reform aimed at cutting cost-of-living pressures at the expense of businesses, roiling stock markets.

A set of reforms announced in July by China's market regulator pushed food delivery platforms in China to guarantee their workers with income above minimum pay, insurance and a relaxation in delivery deadlines.
 

Investors are worried about the rising cost of employing riders by the platforms, Reuters had previously reported.

(Reporting by Gabriel Crossley; Editing by Jacqueline Wong)

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