Cebu ruling shakes gig economy

Cebu ruling shakes gig economy
Local News
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THE National Labor Relations Commission (NLRC) in Central Visayas has delivered a landmark ruling, effective Nov. 7, 2025, forcing Food Panda’s operator, Delivery Hero Logistics Philippines, Inc. (DHLPI), to reinstate the P55 base fee for riders in Cebu.

This decision, a significant victory for organized labor represented by the National Union of Food Delivery Riders Cebu Chapter (Riders-Sentro), goes beyond a pay increase. It directly challenges the “contractor” model of the gig economy.

The NLRC ruling

The writ of execution mandates two major changes:

Base Fee and Incentives Reinstatement: The base fee must revert from P25 back to P55, reversing the company’s unilateral 2021 reduction. Associated batching incentives (P20, P10, P5) are also reinstated.

Worker Benefits: The ruling implicitly treats riders more like employees by mandating eligibility for 13th-month pay and government benefits, including SSS, Pag-Ibig, and PhilHealth.

This legal victory is not isolated, as other chapters of Riders-Sentro have secured the same reinstatement across the country.

Demand for a physical support system

Adding to the call for fair pay, Cebu riders are demanding DHLPI re-establish a physical headquarters in the city. This request highlights a critical flaw in the platform model: the lack of a tangible support system for serious issues.

Riders emphasized that the digital interface is inadequate when dealing with:

Accident and Insurance Claims: Abraham Monticalbo Jr., president of Cebu Delivery Hero Riders - Cebu, noted a severe gap in protection. A physical office is needed to properly process claims and provide tangible support.

Algorithmic Fairness: The lack of a physical hub also leaves riders vulnerable to the platform’s automated and often punitive system. Rider Jose Estellores stressed the need for a hub to handle issues like double booking and sudden cancellations.

In demanding a physical office, riders are calling for human accountability and due process to check the power of the platform’s algorithms, refusing the extreme vulnerability created by a purely digital support system. / Bryce Ken Abellon, USJ-R Intern   

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