Addressing Myths about Gig-Based Works

Source-This post on Addressing Myths about Gig-Based Works has been created based on the article “A case for regulating gig-based work” published in “The Hindu” on 23 July 2024.

UPSC Syllabus-GS Paper-3- Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context– The Karnataka government’s proposal for legislation to enhance gig workers’ welfare is a commendable and necessary initiative. This law aims to debunk misconceptions promoted by the gig and platform industry.

What are the misconceptions promoted by the gig and platform industry?

1) Myth of Independence -They promote the idea that gig workers are “partners” or “captains” without bosses. However, they are subjected to-

A) Algorithmic Control: Algorithms dictate work hours, task allocation, and performance metrics. Workers struggle to understand and comply with algorithmic demands.

B) Digital Agreements: Terms and conditions imposed by platforms negate the concept of independent contracting. Every aspect of work is monitored and controlled by the platform.

2) Myth of Flexibility-They highlight flexibility of gig work to justify the lack of labor law protections. However,there is-

A) Employer-Centric Flexibility: Studies show that flexibility mainly benefits the employer, not the worker. Payment structures and incentive schemes effectively eliminate worker flexibility.

B) Mandatory Requirements: Workers must comply with login hours to qualify for incentives. Inactivity periods result in disadvantaged rate cards and incentive schemes.

3) Full-Time Reality vs. Part-Time Perception– They propagate the notion that gig work is primarily part-time or supplementary income. However, gig workers have-

A) Income Dependency: A study by PAIGHAM and the University of Pennsylvania found that 96% of cab drivers earn their entire daily income from gigs, while 90.7% of delivery workers depend solely on gig work for income.

B) Working Hours: Taxi drivers average over 11 hours of work daily. Delivery workers average 10 hours per day.

How has Karnataka Bill tried to address these misconceptions?

1)  Role of Algorithm-

A) The bill acknowledges how algorithms control workers and aims to empower them by reducing algorithmic influence, allowing for more autonomy in their work lives.

B) Mandates transparency in algorithmic parameters used for work allocation, denial, worker categorization, and personal data usage.

2) Flexibility-The legislation introduces fair contract requirements, ensures income security for workers, and grants them the right to refuse work without facing penalties.

3) Social Protection-The legislation mandates social security provisions for gig workers and creates a framework for schemes covering old age, death, and health-related events.

Read More- Issues faced by Gig worker

What are the issues with the protection of gig workers in India?

1) Central Government Approach- The Code on Social Security makes only a passing reference to gig workers. It has delinked workers from minimum labor protections like wages and occupational safety.

2) Karnataka Government Approach- It doesn’t address critical issues such as minimum wage, occupational safety, working hours, and collective bargaining rights.

Question for practice

What are the misconceptions promoted by the gig and platform industry? How has Karnataka Bill tried to address these misconceptions?