LABOUR STANDARDS IN THE PLATFORM ECONOMY:
A recent report by the Fairwork has evaluated the labour standards maintained by 11 platforms in India, including Swiggy, Zomato, Ola Uber and others. The rating system
Avani Chokshi
A recent report by the Fairwork has evaluated the labour standards maintained by 11 platforms in India, including Swiggy, Zomato, Ola Uber and others. The rating system provides for rating of platforms on five categories of labour standards, ranging from pay to representation. Each of the categories is graded out of two points, with a total rating of 10. The ratings of the gig platforms are in the chart below:
Some important findings of the 2024 report are below:
- Fair Pay: Of the eleven platforms, only two, i.e. Bigbasket and Urban Company got one point for implementing a minimum wage policy that factored in costs of work and were commensurate with notified minimum wages on an hourly wages. However, provision for living wage that would ensure two points was not ensured by any platform.
- Fair conditions: Four platforms, including Ola, Uber, Porter and Flipkart got zero points for Fair conditions, i.e. were not found to have taken any steps to mitigate task specific risks. Thereafter, safe working conditions and safety net such as insurance ensures second point, which was secured by 5 platforms
- Fair Contracts: The first point under this heading is given for providing clear and transparent terms and conditions, and the Second point is given if unfair clauses that denude the platform’s liability or deny the worker right to grievance redressal are not there. Again, the transport and e-mart delivery apps performed poorly on this aspect
- Fair Management: Of the platforms, 7 of 11 provided for grievance redressal/ due process that secured the first point. Further, 4 platforms were given 2 points by virtue of ensuring equity in management through anti-discrimination and other provision.
- Fair representation: Not even a single platform recognized and assured freedom of association and the expression of worker voice (which would secure one point) let alone supports democratic governance (which would secure the second point).
A perusal of the above reveal that the highest score of 10 is
6. Ola, Uber and Porter all scored zero points and Flipkart and Amazon earned one and two points only respectively. Hence, there is a long way to go before fair work principles are assured to platform workers.
However, the findings of the 2024 report become even more interesting when compared against the findings of previous years, which are available from 2019 onwards (with ratings for the year 2019 taken only in Bangalore). It appears that especially for the below 7 platforms, the implementation of fair work principles has reduced substantially, especially in the two vital categories of fair pay and fair representation:
Swiggy: In 2019, Swiggy was awarded 6 points. It ensured that workers received minimum wages after accounting for costs. It was also found to satisfy the principles of fair management and fair representation, with collective grievance redressal mechanisms available. However, in 2020, only one point was secured which has slowly increased till 6 again now. However, the fair representation has reduced to zero now.
Urban Company: In 2019, this platform secured 8 of 10 points, with full points for wages, fair conditions and fair management. Moreover, in respect of the fair representation principle, it was found that there is a documented mechanism for the expression of worker’s voice, and demonstrated responsiveness to issues raised, and one point was awarded. However, this has now reduced to 6 points, with zero points for fair representation.
Uber: In 2019, it was found that workers earned above the minimum wage even taking costs into account, and Uber was awarded two points under the fair pay principle. In 2020, it was seen that minimum wages were paid without taking costs into account, thereby securing one point. In 2021 and 2022, Uber was awarded zero points. In 2023, it was found that Uber has policies and mechanisms in place to protect its workers from task-specific risks, including safety training and an SOS button. However, this was removed in the year 2024, and Uber is again awarded 0 of 10 points.
Porter: Except for 2022 when one point was awarded for transparent terms and conditions, porter has consistently secured zero points in the Fairwork ratings.
Ola: While in 2019-2020, the guarantee of minimum wage considering costs was met, since then Ola has secured zero points on all 5 principles.
Zomato: While it secured 4 points in 2019 which has changed to 6 points in 2024, it may be noted that points that were initially secured towards minimum wages and representation have been lost, and higher points regarding terms and conditions have been secured.
Flipkart: Points have seriously dipped from 7 points in 2019-20 to 2 points in 2014. Previously, minimum wage accounting for costs was ensured and it was found that there is a regular and documented worker voice mechanism available to workers. Today, none of these exist.
It may be kept in mind that the consistent demand of AICCTU has been for recognition of gig and platform workers as ‘employees’ of the platform entitled to all rights of other workers in the organized sector. We have also deprecated the tendency to grant state sanction to the ploy of the platforms to evade liability by showing these workers to be ‘partners’ or ‘representatives’, by treating them in law on par with unorganised workers. Importantly, even the new proposed laws for social security for gig workers do not grant them full fledged rights as workers, but seek to ensure social security for these workers as a category sui generis.
The above analysis reveals that real working conditions of gig and platform workers are dipping, even in the last five years. Where some level of recognition of freedom of expression existed, it has disappeared. So too, where initially gig workers were securing minimum wages taking into account costs of work, the same has been lost in several platforms. In this context, while the larger fight for recognition of jural relationship of employment must continue, the demand of unions in states such as Karnataka for guarantee of basic conditions through a special enactment has merit. Of course, such a law must go hand in hand with collective struggle. With the heightened reliance on platform economy, a successful strike by gig workers will shake the foundations of urban capitalism and can be a catalyst for change.