Vendors seek increase in delivery fees to address rising operating costs and stagnant wages.
Associations Meet to Discuss Business Challenges
Representatives from two major newspaper associations, the Singapore News Vendors’ Association (SNVA) and the Singapore Newspaper Distributors Association (SNDA), gathered on October 30, 2024, to address the mounting challenges their members face. These challenges include rising operational costs and the decline in print subscriptions, which have severely impacted their earnings.
One of the pressing issues discussed during the dialogue with Ang Mo Kio GRC MP Gan Thiam Poh, who serves as an adviser to SNDA, was the stagnant wages of workers in the industry. Newspaper vendors reported that their employees earn between $200 and $700 per month for about four hours of work daily. However, these wages have remained stagnant, while costs for businesses have continued to rise.
Adding to the burden is the competition for workers from delivery platforms like Grab and foodpanda, which have made it difficult to retain manpower. The vendors are now exploring ways to adjust newspaper delivery fees to cover their rising operating costs. They plan to approach SPH Media to discuss a possible increase in delivery fees, which have been adjusted only twice since 1994, the last adjustment occurring in 2013.
Currently, SPH Media oversees the delivery of its newspapers and magazines through about 390 newspaper vendors. These vendors receive a commission from SPH Media based on the number of newspapers they deliver, in addition to delivery fees collected from subscribers, who pay $3 to $5 per month, depending on the type of residence.
Despite the financial challenges, SPH Media has attempted to alleviate some pressure by providing vendors with a subsidy of $3 per month for each doorstep delivery made to direct subscribers since October 2022. However, vendors argue that this assistance has not been enough to offset the rising operational expenses, including increased costs for motorcycles, vans, fuel, and salary payments.
The newspaper industry has seen significant shifts in consumption patterns since the Covid-19 pandemic, with many readers turning to digital and online platforms. This transition has compounded the struggles of newspaper vendors, particularly as print subscriptions continue to decline. Vendors now have to deliver more newspapers to more blocks to achieve the same number of deliveries, necessitating the hiring of additional workers.
While the vendors are still in discussions with SPH Media regarding the quantum of potential fee increases, they are optimistic about reaching a solution that will allow them to remain financially sustainable in the face of ongoing challenges.
