An official at a major cab driver recruitment company has been filmed telling a worker that if he accepts a job with them, he will only have to pay €150 monthly in taxes at most, even if he makes €10,000 worth of trips.
Video footage sent to Times of Malta shows an official at WT Global and an owner of Ferruggia Fleet – two of Malta’s largest cab driver employers – telling workers they will engage them on minimum wage contracts regardless of their earnings.
It means they would still only pay tax on a declared minimum wage.
Non-EU cab drivers in Malta, legally referred to as ‘third country nationals’, must be employed by companies, known as ‘fleets’, which provide drivers for platforms like Bolt, Uber and E-cabs. Despite picking up riders through the Bolt application, these drivers are not employed or paid directly by Bolt but by fleets that are their legal employers.
The video footage was taken at the offices of the two companies and shows officials speaking to drivers who went to inquire about salaries and working conditions on different occasions over the past months.
Sources in the ride-hailing industry believe the practice of offering such contracts is widespread throughout the sector, not just within these two companies. Sources close to the government confirmed these two companies are among those subject to investigations by the authorities into their operations and finances, as well as worker exploitation.
Times of Malta is informed that applicants are often unaware that the contracts being offered are unlawful.
The two companies deny any wrongdoing.
The footage shows the officials describing the details of the contract system.
It is common for a driver to make €8,000 worth of trips in a month, one official at WT Global is heard telling a worker.
Those earnings are then split equally between the company and the driver in what is known in the industry as the 50:50 model, he explains.
After the driver deducts taxes and fuel and garage rental costs – which he must pay himself – he could be left with some €2,000 or more in hand.
If a driver were to agree to this arrangement, the official explains, it would mean they could be pocketing that much money while both driver and company will together pay less than €300 in taxes and social security.
Times of Malta is blurring the entire footage to protect the identity of the people who recorded the videos.
‘On contract we just mention minimum salary’
The WT Global official told one driver: “On contract we just mention the minimum salary, which is €12,000 something per year, as per Maltese law, and according to that salary, your tax and social security will be… approximately €130, €150 maximum.”
He elaborated to another: “Even if you make €10,000, because it’s a commission-based job and on your contract you have minimum salary.”
“And this is normal, eh, they reach €8,000 [monthly] easily,” he tells a third driver.
The law allows employers to pay performance-based commission to their employees but both must declare it and pay taxes on it.
In another video recorded at the same office, the same official tells a driver some drivers work 30 days a month and make €400 per day, which they then equally split with the company.
At Ferruggia Fleet, a company owner also explained to the driver, by way of example, that if he makes €10,000 gross in a month, that will be split 50:50 between him and the fleet.
Later, he tells him: “In the contract you’re going to have the minimum wage but you can also ask to have a slightly higher salary, to pay more tax, so you can call your family to come.”
Drivers confirmed arrangements
Drivers who have previously worked for the two companies confirmed to Times of Malta they were engaged with minimum wage contracts and, at the end of some peak summer months, would pocket as much as €4,000 a month, after splitting the earnings with the company and after paying fuel costs and taxes.
“Whenever a customer pays cash, my employer tells me to keep it. The rest of the money is paid to me via Revolut,” one driver stated.
Another driver in the job for several years confirmed he worked with a similar system and his employment contract said he earned just over €900 gross monthly. Drivers, however, do not make as much money during the off-peak winter months. “In summer, I earn between €2,500 and €3,000 a month in my pocket. In winter it’s around €1,000 or a bit less” one driver said.
In summer, he works up to a staggering 16 hours daily to make up for the slower months, he added, and in winter he drives for around 12 hours daily to make enough money to get by.
The contracts also mention paid sick leave, vacation leave and other statutory benefits but none of that was given, the drivers who spoke to Times of Malta said.
In the footage, the WT Global official confirms this, telling one driver he will be allowed to go on vacation and take sick leave but he will not be paid for them.
Companies deny wrongdoing
Times of Malta sent clips of the recordings to both companies and both denied any wrongdoing.
WT Global said: “Any information regarding conditions of work is communicated solely through our Human Resources Department. The audio seems to depict two non-Maltese nationals whose first language is not English speaking on this subject. We have no such person working in our HR. Thus, this person cannot be described as a company official.
“Thus, while the audio is not clear, at best it represents a wrong assumption of our conditions of work by someone engaging in a conversation with a third party. Furthermore, throughout the audio, the person is not giving clear answers and, at a point, refers the person to HR.”
Times of Malta was able to confirm – through publicly available information online – that the official seen in all videos taken at WT Global states he works in human resources for the company.
Online, he describes himself as “Operations Assistant Manager, United Human Resource – WT Global”’.
The company went on to say: “To be even more specific, the audio claims that costs related to tyres, repairs, maintenance and garaging are accounted as business expenses and not employee costs. WT Global does not attribute these business expenses and garage costs to our employees. Also, we cover vehicle insurance related costs ourselves.
“Additionally, our employees are not compensated on a commission basis. Couriers are paid using a percentage model ensuring the minimum wage and other entitlements at all times irrespective of business cycles, while rewarding efficient individuals.”
It said the company is continuously checked by the Department of Industrial and Employment Relations (DIER).
“We reserve the right to take any further legitimate action to protect our company,” it said.
‘Books are in order’
Ferruggia Fleet replied through its lawyer, saying: “The client is of the understanding that all its employment and accounting books are in order, and is fully prepared to cooperate with the relevant authorities should they have any further questions or concerns about our operations.
“The client would also like to disclose that it has consistently worked towards achieving new levels of fairness and employee welfare.”
Authorities investigating
Last month, Times of Malta reported how the premises of both companies, along with that of another recruitment agency – Mela Cleaning – were raided by Jobsplus officials as part of an investigation into employee abuse.
The investigations are mostly focused on drivers’ working conditions and alleged worker exploitation in an industry that has been the hotbed of controversy since it mushroomed during the last few years.
The companies also employ food couriers, who have often protested on the streets and complained to the media that they are forced to work inhumane hours just to earn a living income.
Meanwhile, earlier this year, MaltaToday had already reported how WT Global’s “murky” accounts paint a picture of what seems to be “a small empire built on the cheap labour of its workers”.
Times of Malta sent questions to Bolt, which, though not the drivers’ direct employer, is Malta’s largest cab platform, which both companies’ drivers use to operate. Bolt said it was unaware “of these allegations or arrangements and take(s) such reports extremely seriously”.
A company spokesperson said: “Bolt does not employ drivers itself and does not have visibility nor authority over the content of the contractual relationship between the fleet operators and their drivers.”
“All drivers are either providing transportation services independently or engaged by independent, third-party entities (fleet operators) to provide transportation services on their behalf, while Bolt provides the platform and technology to connect the drivers with their prospective passengers,” they said, adding this is a common model in the sector globally and in Malta.
“Our goal is to provide a reliable and affordable electronic platform where transportation services are made available to passengers through the fleets and their registered drivers while ensuring fairness for all those forming part of this marketplace.
“Bolt relies on the relevant authorities to issue approvals, licences and documentation, which are required for fleets and drivers to operate lawfully, and such authorisations are an essential prerequisite for any registration on the Bolt platform.”
Bolt said it will terminate its agreements with any fleet operators if they are found to be in breach of law or involved in any kind of malpractice in breach of their contract.
E-cabs would not confirm or deny whether they work with either company, saying only: "The eCabs ride-hailing platform is open to all drivers and fleets that are licensed to work in this industry".
It said that following the "serious allegations" it is awaiting guidance from the regulators and national authorities on whether the two operators are deemed compliant by law.
Questions have been sent to Uber.