Union backs delivery pay draft, warns against cost shift

Taipei, Nov. 22 (CNA) The National Delivery Industrial Union (NDIU) on Saturday said it accepts a new draft bill that would set delivery workers' pay at no less than 1.25 times the hourly minimum wage, while cautioning platforms against shifting any additional costs to consumers.

The proposal, announced by the Ministry of Labor (MOL) on Friday, requires platforms to calculate pay for each delivery order separately, ensuring delivery workers are paid a base rate per hour that is at least 1.25 times higher than Taiwan's minimum wage or the standard delivery fee set by the Ministry of Transportation and Communications (MOTC).

Based on next year's minimum hourly wage of NT$196 (US$6.25), the draft sets the delivery pay floor at NT$245.

Meanwhile, the MOTC has set the base rate per kilometer using a formula that factors in vehicle costs, a reasonable profit margin, and the average number of orders completed per kilometer. Additional charges, such as waiting or walk-up fees, may be added when necessary.

Commenting on the draft bill, union spokesperson Su Po-hao (蘇柏豪) said the proposed floor is reasonable, noting that platforms themselves report average hourly earnings of NT$270 to NT$290 for delivery workers.

On Friday, the Digital Economy Association Taiwan (DEAT) urged lawmakers not to rush the legislation, warning that platforms could be forced to pass on rising costs to consumers.

DEAT estimated that this could result in the loss of up to 145 million orders, worth more than NT$46 billion, potentially pushing more than 50,000 of Taiwan's 150,000 delivery workers out of the market.

Su countered, however, that such concerns are overstated, saying the proposed pay floor would not meaningfully increase operating costs.

NDIU head Chen Yu-an (陳昱安) said the union originally proposed a floor of 1.5 times the minimum wage in line with international practice.

The proposed draft also requires platforms to provide group accident and liability insurance before allowing workers to take orders. Delivery workers who purchase occupational accident insurance independently may apply for reimbursement, according to the draft.