Issue link: https://maltatoday.uberflip.com/i/1524836
11 ANALYSIS maltatoday | SUNDAY • 4 AUGUST 2024 cifically. Under the new platform work rules, a company making use of an agency to se- cure a supply of workers must provide that agency will all the necessary information for salaries to be paid out accurately. These rules also enshrined the rights of platform workers to a minimum wage, overtime rates and vacation leave, among other stat- utory benefits. Meanwhile, the regulations on employ- ment agencies introduced new license con- ditions, which meant that an agency caught charging or demanding payments from ap- plicants in exchange of employment would be considered guilty of an offence. This, in turn, would lead to the refusal or revocation of the agency's licence. There was a whole other kettle of fish that had to be dealt with in the taxi industry specifically. At the time, non-EU nationals coming to Malta did not need a local driving license to receive a taxi driver's tag. Rather, they would qualify for the tag immediately, but be given a one-year period to obtain an EU driving licence. This changes in July 2023, when the Transport Ministry announced that for- eigners applying to work as cab drivers in Malta will not be allowed to do so if they do not have an EU driving licence. Cab opera- tors were also slapped with new regulations on garages. Suddenly, after years of lax en- forcement, they had to present a site plan, confirmed by an architect, of the garage where they leave their unattended vehicles. Craft cab operators found clever ways to circumvent this rule. Instead, they decided to illegally park their vehicles overnight in a variety of public-private locations, from fields to supermarket parking areas. In fact, it took the Transport Ministry less than a year to announce that it will be revising these rules to ensure a fairer system for commuters and drivers. Going bananas The plight of couriers and cab drivers are rarely out of the spotlight, and over the years many of them have either gone on strike or taken to the streets to protest their working conditions. Despite having no union, no fixed work- place, and vulnerable working conditions, around 500 Bolt couriers went on strike in the summer of 2022. They were demand- ing an increase in their bonus payments, which had been on the decline for years on the app. At first, Bolt Food promised to op- timise its pricing mechanism in reaction to the strike. Eventually, it said that it will not change its earnings formula, including its bonus mechanisms. The heat turned up a notch this year, espe- cially in the taxi industry. Last February, cab drivers took to the streets in a slow-moving carcade to protest predatory pricing in the sector. Workers drove their cars through Malta's arterial roads, waving flags and honking their horns, urging cab platforms to reevaluate their current pricing strate- gies. A second protest was slated for May, but this was averted after the Transport Ministry reached an agreement with the Light Passenger Operators Association, the protest's organisers. The two parties agreed to regulating the demographic supply in the industry, introducing geo-fencing, and reviewing the special licence requirements for taxi drivers. Last month, two years since the first Bolt Food strike, courtiers again switched off their apps and refused to work after the company removed their weekend bonus. This strike prompted Employment Minis- ter Byron Camilleri to publicly state that he will ensure the case is investigated. Junior minister Andy Ellul also urged workers to report any abuse or unfair treatment to the Department for Industrial and Employ- ment Relations. Upsetting the apple cart Two weeks later, a man was hauled into court and charged with human traffick- ing and making false declarations to au- thorities. His arrest was the result of joint investigations by Jobsplus and Identità, af- ter officials from the two entities received reports of an excessive amount of workers employed in the man's company. Jobsplus conducted an inspection on the company's premises and found that one of the three restaurant's under the company's owner- ship was in the process of closing down, while another restaurant was not in oper- ation yet, and a third was just a kitchen set up for online deliveries only. This company, and the three alleged restaurants, employed hundreds of workers. The man pleaded guilty on his arraign- ment, and the court handed him a two-year prison sentence sinece he had cooperated with the police and admitted to the charges at the earliest possible stage of the proceed- ings. Parallel to this, hundreds of third-country nationals who applied to work as cab driv- ers and food couriers were suddenly hav- ing their work permit applications refused. Identità was suddenly refusing non-EU ap- plicants applying to work in these jobs, up- on the recommendation of Jobsplus. Indeed, it was Jobsplus that determined that the labour market for cab drivers and food couriers has reached saturation. As a result, any third-country nationals who are still abroad and applying to work in these roles will now have their applications re- fused. Workers in these sectors who want to change employer but remain in the sector will also have their applications refused. Government sources told MaltaToday that this decision was taken to avoid a re- cruitment agency bringing TCNs to Mal- ta on a false pretence as, say, waiters and cleaners, only to change the workplace to Bolt or Wolt when the worker arrives in Malta. A hot potato Market penetration in the mobility sector follows the same blueprint: stun the local regulator, capture the driver supply mar- ket and attract consumers, all by exploiting fiscal and employment loopholes to keep company costs low. While this was the recipe for success for most mobility companies, the sustainabili- ty of this model is being called into ques- tion. So far, consumers have benefited from cheap prices; but is it a matter of time before prices and commission go up? If companies are no longer able to keep labour costs low, and any fiscal or employment loopholes can no longer be exploited, will promo codes and referrals be enough to keep customers happy? Bolt has recently acknowledged that a recent unbalance between increasing de- mand and a lower supply of cabs has re- sulted in longer periods of surge prices and longer waiting times. Whether this is a di- rect result of the government's labour mar- ket crackdown is not quite certain. Meanwhile, Jobsplus has raided the offic- es of three other recruitment agencies: WT Global, Ferrugia Fleet and Mela Cleaning. MaltaToday is informed that investigations are underway at Jobsplus and at the Malta Police Force. It's unclear which way the sector will go from here. Regulators eventually caught up with the market, but we're yet to see wheth- er the market will get its house in order or continue to exploit loopholes and enforce- ment oversights. cabs and couriers conundrum