What’s new: Chinese regulators made another effort to press the country’s biggest internet platform operators to better protect labor rights, the latest move in a wide-ranging campaign to regulate the expansive tech sector.
Four central government ministries issued a joint guidance order Friday to 11 internet giants including Alibaba Group, Tencent, Meituan and Didi, asking them to step up efforts to safeguard workers’ rights and interests.
This is the second time since September that the regulators issued joint guidance to the companies concerning labor rights protection.
The background: Millions of gig workers, including takeout and ride-hailing drivers, played an important role in the rapid development of China’s sprawling platform economy. They are part of new forms of employment adopted by internet platforms, which tended to outsource workers’ insurance and safety protection to third-party vendors for the sake of cost saving, usually lacking oversight.
The rights of gig workers have become a focal point in China’s tech sector supervision. In July, the State Council, China’s cabinet, vowed to improve protections for flexibly employed workers in the internet service industry. Eight government agencies that month issued guidelines laying out 19 measures to safeguard the rights and interests of such delivery workers and ride-hailing drivers, including regulating employment status.
Stricter labor welfare and protection requirements are expected to significantly drive up internet platforms’ operating costs, analysts said.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com)
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