Booming Gig Economy
‘Prisoners on Wheels’
T Navin
Gig economy has become an integral part of
daily lives particularly in large cities and metros of Urban India. Services related to transportation, food delivery and urban services have made the lives convenient for urban consumers and service users. Gig economy is considered to be the next happening thing where work would be based on flexibility and convenience. However, behind the booming ‘gig’ economy is the story of the ‘gig workers’. The report titled “Prisoners on Wheels? Report on Working and Living Conditions of App-based Workers in India” presents this story. This is based on a survey of 10,000 gig workers from eight cities of India–Delhi, Jaipur, Indore, Hyderabad, Bangalore, Mumbai, and Kolkata. The report is about cab drivers of Ola, Uber platform and delivery workers of Swiggy and Zomato platform.
The report states that gig workers face the challenge of income instability, with earnings fluctuating widely, leading to financial uncertainties and this forces them to overwork to make ends meet. Gig workers also lack traditional employment benefits such as health insurance, retirement plans, and paid leave, which are common in more conventional jobs. Added to this is job insecurity, as gig workers have no guarantee of stable employment or regular income, making them particularly vulnerable. As “contract workers,” gig workers also lack legal protections, leaving them open to exploitation without recourse to fair compensation, workplace safety, or protection from discrimination. The uncertain income and working conditions also negatively impact mental health, leading to stress, anxiety, and depression.
Gig work expanded in India particularly due to availability of affordable, low skilled labour. The gig workers could be either blue-collar workers like delivery personnel and cab drivers or white-collar workers as digital marketers. As ‘contract workers’, they lack access to employment benefits such as minimum wages, overtime pay, severance pay, pensions, and other protections. Lack of regulation diminishes their bargaining power, and they also lack redressal mechanisms. The existing code on social security has inadequate provisions for gig workers, who are also subject to algorithmic surveillance, further eroding transparency and accountability between workers and platforms.
The sample study of cab drivers indicated that 83% work more than 10 hours daily, with 31% working over 14 hours. 43% earn less than Rs 500 per day after expenses. Most drivers (80.3%) are dissatisfied with the base fare offered. Many (66.6%) lack leisure time for their families, with 40.7% not taking a single day off per week. Sleep deprivation is prevalent, with 79.4% sleeping only 5-7 hours. Physical ailments are common, with 86.5% reporting knee, leg, foot, back, and head pains, while 98.5% experience mental health issues. Nearly half (47.1%) have faced violence at work. 83% have experienced ID blocking or deactivation, leading to financial instability. Many drivers feel that the commissions charged by companies are arbitrary, and 69% believe they should be compensated for dry runs, long pick-ups, and other job-related expenses.
Delivery persons face similar challenges, with 34.4% earning less than Rs 10,000 a month after meeting expenses. The majority (89.9%) oppose the 10-minute instant delivery model as it is risky. 48.2% felt that they could not take even one day off per week. 79.5% felt that they get 5-7 hours of sleep daily. Many (49.8%) have minimal leisure time. 55% work 10-12 hours daily. 48.7% were unable to take vacations or family visits. Physical and mental health issues are prevalent. 41.5% have faced violence at work. 87% were affected by ID blocking or deactivation.
The study reveals that a majority of app-based cab drivers are young (78% aged 21-40) and predominantly male (94%). Most respondents are high school graduates (59.3%). The drivers mainly belong to nuclear, middle, or lower-middle-class families, with 61.1% supporting 3-5 family members. Hindus constitute 83.2% of the respondents, while Muslims make up 15.45%.
A significant number of drivers work for both Ola and Uber (49.6%). Most drivers (59.3%) have been working with app-based companies for 3-5 years, and 73.8% are owner-drivers. Swift Dzire is the most common vehicle for (41.4%). 36.6% of drivers are part of a union and 63.4% are yet to be unionised. The industry is dominated by young, male, married individuals from diverse socio-economic backgrounds, with significant regional variations in employment patterns and vehicle ownership.
The study thus highlights the harsh realities faced by gig workers in India, particularly in platform-based industries. The lack of adequate labour rights and protections, coupled with challenging working conditions underscores the urgent need for comprehensive policy reforms to safeguard the interests and well-being of gig workers. The report recommends bringing improvement in the working conditions of gig workers.
The study recommends addressing the challenges faced by app-based cab drivers by focusing on improving their working conditions, earnings, and overall well-being. Key measures include treating drivers as employees and ensuring they receive at least the minimum wage for the logged-in time. Until this is implemented, compensating drivers for dry runs, long pickups, time spent in traffic, idle time, customer cancellations, and income loss due to fuel price hikes is suggested. Standardising metered fare rates and commission rates, with at least 80% of ride fare going to drivers, is also recommended. To prevent wage suppression due to oversupply, controlling the number of cars in metropolitan areas based on occupancy rates is proposed.
The report states that contracts between drivers and platforms should be simplified and made accessible in native languages, eliminating the current discriminatory and non-transparent practices. Health and safety risks, such as accidents and occupational hazards, should be mitigated by making companies liable to provide adequate insurance and benefits, as mandated by the Code on Social Security 2020. The arbitrary deactivation of drivers’ IDs must be addressed with a clear grievance redressal mechanism and fair hearing procedures. Regulating working hours, improving earnings, and protecting drivers from algorithmic discrimination are mentioned to be crucial. The government should ensure data transparency, sharing provisions, and data rights for workers, alongside developing strong legislation to protect gig and platform workers.
It calls for implementing the Social Security Code and establishing a grievance redressal mechanism to safeguard workers’ rights. Special attention is to be given to improving working conditions for women on digital platforms, including providing access to clean public facilities and targeted social security schemes. The government must complement progressive state measures and introduce a tripartite social dialogue system between the government, platforms, and workers’ organizations to improve working conditions and wages. Access to easy and cheap credit facilities, especially for marginalized communities, are to be provided to facilitate entry into the cab-hailing industry and transition to electric vehicles.
The recommendations for improving the working conditions of app-based delivery persons emphasise treating them as employees with assured daily earnings at least equivalent to the state minimum wage.
Contracts it is stated should be simplified, made transparent, and provided in languages understood by delivery persons. Companies must make all data accessible to the government and personal data to the delivery persons. The urgent implementation of the Social Security Code and adherence to ILO Convention 102 principles are mentioned to be necessary, along with a time-bound and independent grievance redressal mechanism.
The report brings out the reality of gig workers, the challenges faced by them and calls for policy reforms to address the challenges faced by gig workers. The study based on a large sample size is a must-read to understand the status of gig workers.
[Author: T Navin is an independent writer. <cointercurrents.org>]
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Frontier
Vol 57, No. 11, Sep 8 - 14, 2024 |