Prabhat Sharma
Prevention of the revival of the Industrial Revolution
What is Gig Economy?
The role and responsibilities of Gig Worker(GW) is different from traditional permanent employment. Payment is made based on the work completed, not on the basis of attendance. In another words, the gig economy is a labour market characterised by temporary contract rather than permanent positions. People earn money from providing on-demand work, services, or goods.
A wide variety of positions fall into the category of a gig work. The work can range from managing short-term rentals, tutoring, writing code, to driving for delivery services.
The gig economy experienced significant growth in 2020. COVID-19 lockdowns forced people to work from home and rely more on purchasing goods and services online and these trends continued even after restrictions were lifted.
Trends show about 47% of the gig work is in medium-skilled jobs,about 22% in high-skilled jobs and about 31% in low-skilled jobs.
This article focusesprimarily on Gig Work pertaining to deliveryof food and other materials for various platforms like Swiggy, Zomato and many others.
Post Covid,there was discussion, among the academicians and think tank, Civil Society, on the relevance of GW. Secondly they are also concerned about the whole business model , which is more or less one way, no social security, financial support. Some of them are of the view that GW Should not become another group of people to be exploited to maximise the profits from respective businesses in the similar line of earlier Industrial Revolution days. Which was characterised by maximising exploitation and nil or minimal social security and facilities.
Let’s address all thesethese issues one by one.
Growth and Future of the Gig Economy in India
As per NitiAayog, in India between 2020-2022, 77 lakh (7.7 million) workers were engaged in the gig economy and it is expected to grow to 2.35 crore (23.5 million) workers by 2029-2030.
Trends show that the concentration of workers in medium-skilled jobs is gradually declining while both low-skilled and high-skilled gig work is increasing. In the future, gig work across other skill sets,is likely to emerge.
The Gig Economy is sustainable and and will continue to grow, benefiting allstakeholders. For consumers, it has become an integral part of their daily life and is convenient, time-saving, and offers a wide variety of choices. It is, especially, useful for people like single mothers ,the elderly, those who are ill, etc. as it provides hassle free purchasing options that avoid being stuck in traffic or going shop to shop negotiating the rates and refundable options.
Although, few arguethat it doesn’t offer the same social experience as going out with friends or relatives to enjoy the outdoors with their company. It also limits the ability to see and experience things firsthand.
The manufacturers are also reaching a wider customer base which helps them evolve mechanisms to reevaluate their strategies likeunderstanding the needs of various age groups in different locations and adjusting their product mix and pricingt.
Maturing Gig Economy
The Gig Economy is still in the process of maturing. This is the right time to make it agile enough to face both current and future challenges.
Roles played by platforms owners, gig workers and Government
There are three major parties involved besides the consumers i.e. platforms owners, gig workers and Government, each having a critical role to play.
- Gig Workers:They have to improve their communication skills, technical abilities, professional mannerisms,etc.Employers must support gig workers in various ways. More Importantly, they have to work on improving working conditions/ services. Delivery points, such as malls and hotels, need to treat gig workers well, making their environment more comfortable and respectful. For instance, “Fresh Work”, despite having $1 billion in its account and planning a buyback, fired its workers with little regard to their well being.
- Government: Governments need to find ways to secure gig workers’ livelihoods, ensuring their safety, financial security, etc. Existing labor laws that safeguard workers do not directly extend to gig workers, leaving them vulnerable and undermining the century-old efforts to secure such protections. The Code on Social Security (2020) recognized gig and platform workers for the first time, including provisions to frame social security schemes and establish a Social Security Fund.
Recently, the Central Government has taken concrete steps to address the issue like Social Security, health insurance and pension.Karnataka Government also plans to introduce Bills its AssemblySession to impose a cess on aggregators, which will only apply to transport services and not the purchase of products. Similarly, states like Jharkhand, Rajasthan, Telangana, Tamil Nadu, and others are taking action to protect gig workers and provide financial support, health and safety measures, and even children’s education benefits.
However, these provisions need to be implemented effectively and not remain merely on paper.
- Platform Owners: Platform Owners need to take worker protection more seriously. Despite ongoing conversations about the rights of platform workers, there are no substantial benefits provided to platform-based workers. While it may appear that extensive efforts are being made on their behalf, in reality, these workers continue to operate with minimal social protections and security.
The Future of the Gig Economy
All stakeholders need to take one thing into consideration, that gig economy is a new economy, addressing new-world needs. Thus, utmost care must be taken while addressing specific issues since the same are cropping up under absolutely novel circumstance to address the needs of mainly the new generations. The traditional approach like existing laws, labour codes, Trade Union Rules etc. may not be suitable to address issues of gig workforce, nor should it be. We must grow alongside the gig workersand not at their expense. We cannot return to the exploitative conditions under the Industrial Revolution.
(Author is former spokesperson of Tata Steel. The views expressed are personal.)
