Being part of such a world, Indian gig work, powered by the rise of startups like Zomato and Swiggy, seems to have made life easy for many. Just a few taps on a smartphone app can render goods or services delivered to the doorstep. However, this convenience comes at a whopping human cost borne by the army of “delivery partners” who form the backbone of this gig workforce. Workers, often earning meager wages of less than Rs. 11,000 per month, suffer hazardous working conditions, lack elementary rights and protections, and are denied the dignity of regular employment.
Origin of the Article
This editorial is based on “From Amazon’s Haryana warehouse to the delivery boy at your doorstep- tales of oaths and indignity” which was published in The Indian Express on 17/06/2024. The article highlights the harsh conditions gig workers in India face. Thus, underscores the broader socio-economic issues that allow such exploitation, calling for better labor rights and protections.
Relevancy for UPSC Students
For UPSC aspirants, understanding the gig economy is crucial. It touches upon various aspects of the GS Paper – 3 syllabus, including issues relating to development and government policies. The knowledge gained can be directly useful for both prelims and mains examinations.
Why in News
The gig economy’s exponential growth in India, coupled with its socio-economic implications, makes it a critical topic for UPSC aspirants. Recent discussions on the precarious conditions faced by gig workers highlight significant gaps in labor rights and social security. These issues were previously explored in UPSC questions on labor laws, economic development, and social justice. These ongoing debates offer crucial insights for understanding India’s evolving labor market dynamics and regulatory frameworks.
Future of India’s Gig Work
The gig economy has proven to be a boon for India, as it seemed – Zomato and Swiggy have made life easier for many people. The convenience of getting all essential goods and services delivered to one’s doorstep is a mere tap away on a smartphone app. But this convenience is paid in raw human cost borne by the army of “delivery partners” as if that’s what forms this gig workforce’s backbone. These are the workers who, after all, make less than Rs 11,000 monthly; they toil under poor working conditions, lack the protections and rights afforded by normal employment, and are stripped of their dignity.
India’s burgeoning gig and platform economy This NITI Aayog report says the number of the gig workforce will increase to 23.5 million by 2029-30. The gig economy model, sanctified for its “innovation,” effectively cuts labor costs by defining workers as “partners” instead of employees. There is a massive gap between these workers’ purchasing power and that of the rich consumers. They fulfill the need for critical questioning of this model in terms of its economic and social sustainability in the long term.
What is the Gig Economy?
The gig economy is a job market marked by short-term, freelance, or contract-based work arrangements, often facilitated through online platforms that connect workers with consumers or businesses. It, therefore, characterizes an even more pronounced shift away from traditional forms of permanent employment into a more flexible, task-based, and on-demand nature of a workforce.
Structure: Basically, workers in the gig economy are usually independent contractors, freelancers, or temporary workers who undertake specific tasks or projects for a fixed fee or on an hourly basis. Businesses or clients engage gig workers for specific projects or tasks instead of promoting full-time jobs. Online platforms, for instance, Upwork, Uber, and Swiggy act as intermediaries connecting businesses and clients with gig workers. Thus, task distribution, payment handling, and communication can be handled by the online platform.
What is the Legislative Framework Related to Gig Workers in India?
- Code on Social Security, 2020: While allowing gig workers as a separate category and hypothesizing social security benefits for them, it leaves it for the states to decide on the rules of its implementation.
- Code on Wages, 2019: It covers all sectors. A national minimum wage is to be enacted. However, the minimum varies from state to state and is also based on skills.
- Policy and Planning: The NITI Aayog Report on India’s Gig and Platform Economy published in 2022 calls for skilling initiatives from the platform and social security for gig workers. It also underscores the requirement for data collection as well as better enumeration of the gig workforce.
What are the Factors Driving Growth of the Gig Economy in India?
Increased Smartphone and Mobile Penetration: Expansion in smartphone penetration coupled with cheaper access to the internet opens a more embracing platform for businesses to bypass the middle agents and deal with the real operators themselves.
Changes in Work Preferences: The preference for work is changing in that there is improved work-life balance and flexibility where millennials and Gen Z are exercising the flexibility of choosing and working through the selection of projects, setting their schedules, and working from anywhere.
Rise of Startup Culture: India is home to 16,000+ new tech firms in 2020 related to startups and investments. The growth of the startup ecosystem depends largely on freelance workers for content creation, web development, and marketing. Similarly, online e-commerce companies have huge requirements for logistics and delivery services.
Convenience and Quick Services: Consumers nowadays are demanding convenience, right from food delivery to e-commerce; Indians are demanding, especially in urban areas. It is such demand that has created a market for gig jobs to fill in delivery executives and cab drivers.
Abundance of Low-Cost Labor: As of now, around 47% of gig work is medium-skilled, and around 31% is low-skilled. India has a huge reserve of semi-skilled and unskilled labor wanting to take on the gig work platform due to scarce formal employment opportunities. This oversupply of labor allows gig platforms to charge lesser wages and poor working conditions.
What are the Major Challenges Faced by Gig Workers in India?
Lack of Basic Rights and Social Security
Gig workers are typically classified as independent contractors or “partners,” rather than employees. This deprives them of basic rights and social security benefits that regular employees are entitled to, such as minimum wages, paid leave, healthcare, and pension. For instance, delivery partners of companies like Zomato and Swiggy do not receive any benefits or hazard pay, despite facing harsh working conditions.
Precarious Employment and Income Insecurity
Gig work is inherently precarious and lacks job security. Workers can be easily disconnected from the platform, leading to a loss of income and livelihood. Moreover, their earnings are often unpredictable and fluctuate based on demand, making it difficult to plan financially.
Exploitation and Unfair Treatment
The lack of legal protection and the power imbalance between workers and platforms create conditions ripe for exploitation. Workers may face unreasonable demands, such as the “oaths” imposed not to drink water or use the restroom unless they meet targets.
Health and Safety Risks
Some gig work requires exerting energy in delivering or ride-sharing, which exposes the worker to health and safety risks. For instance, in the case under study, delivery partners are working during heat waves without hazard pay or any other form of support from the companies they serve. The 10-minute delivery policy places the lives of delivery workers at risk. In addition to the above, a lack of insurance coverage increases the financial cost in cases of accidents or injuries.
Lack of Collective Bargaining Power
Gig workers are typically isolated and cannot unionize or collectively bargain for better working conditions and remuneration. Hence, this power imbalance makes it difficult for them to advocate for their rights or negotiate better terms with the platforms they work for.
What Measures Can Be Adopted to Address Issues Related to Gig Workers in India?
Regulatory Reforms and Legal Recognition
There is a need for comprehensive regulatory reforms that provide legal recognition and a clear definition of gig workers’ employment status. This could include amending existing labor codes or introducing new legislation specifically for gig workers. Thus, ensuring they are entitled to minimum wages and other labor protections.
Establishment of Tripartite Governance Structure
A tripartite governance structure involving the government, gig platforms, and worker representatives could be established. This would allow for effective dialogue, collective bargaining, and the formulation of industry-wide standards and guidelines for fair working conditions, grievance redressal mechanisms, and worker welfare measures.
Skill Development and Upskilling Initiatives
India needs to push efforts to provide gig workers with opportunities for skill development and upskilling according to the current market scenarios. enabling them to transition into higher-paying roles or pursue entrepreneurial ventures. This could include collaborations with vocational training institutes and government-backed programs.
Social Security Inclusion
Provisions of the Code on Social Security, 2020 must be implemented. That is there to provide health insurance, accident insurance, and pension for gig workers. However, this could be a three-way funding model between the platforms, subsidies from the government, and workers themselves through deductions.
Fair Pay and Algorithmic Transparency
Platforms should be held accountable for ensuring fair pay structures and transparent algorithms that determine pay rates and task allocation. Workers should have the right to challenge unfair algorithmic decisions.
Gig Worker Data Portability
Implementing data portability standards that allow gig workers to transfer their work history, ratings, and skill certifications across different platforms. This reduces dependence on a single platform and improves worker mobility. Data security and privacy concerns must be addressed to protect worker data during transfers.
Heat Protection Policies
Implement specific policies for the platforms to offer cooling accessories, mandatory breaks, and compensatory pay to delivery workers during extreme heat waves, as per the guidelines of the labor department. Referring to the situation caused by the heatwave, Zomato recently appealed to its customers not to order food during the peak afternoon unless “necessary”.
Conclusion
As India’s gig economy continues to grow, it is essential to address the pressing issues faced by gig workers. Thus, Issues would have to be addressed in such workers, like effective regulatory frameworks, inclusion of social security, and fair practices on pay. For the UPSC aspirants, it forms an important dynamic. Being policymakers of tomorrow, you shall play an active role in structuring a more equitable and sustainable gig economy.
| UPSC Civil Services Examination, Previous Year Questions (PYQs) Mains Q. What are the impediments in marketing and supply chain management in developing the food processing industry in India? Can e-commerce help in overcoming these bottlenecks? (GS-III, 2015) Q. Analyze the current legislative framework in India concerning gig workers. Highlight the key provisions of the Code on Social Security, 2020, and the Code on Wages, 2019, in relation to gig workers. Discuss the gaps in these laws and suggest improvements to ensure better protection and rights for gig workers. |
