Only 2 of 11 e-commerce platforms have minimum wage policy: Report

Fairwork India survey noted insufficient evidence to show that workers earn at least a local living wage after expenses

Only two of the 11 e-commerce platforms have a minimum wage policy that guarantees all their workers earn at least the local hourly minimum wage, according to a survey report by the research organisation Fairwork India.

The latest survey conducted by Fairwork India in association with the University of Oxford, released on Tuesday, evaluated digital platforms offering location-based services based on five parameters: fair pay, fair conditions, fair contracts, fair management, and fair representation.

The 11 platforms surveyed are BigBasket, Swiggy, Urban Company, Zomato, BluSmart, Zepto, Amazon Flex, Flipkart, Ola, Porter, and Uber.

Under the Fair Pay criterion, a platform is awarded one point for ensuring that workers earn at least the local minimum wage after costs. It receives an additional point if it ensures that workers earn at least a local living wage after costs. Overall, the companies are scored out of 10.

According to the survey, only BigBasket and Urban Company received the first point under Fair Pay for instituting a minimum wage policy that guarantees all their workers earn at least the local hourly minimum wage after factoring in work-related costs.

“In addition to ensuring that payments are made in full and on time, both platforms have a publicly available wage policy that commits to ensuring their workers earn at least the local hourly minimum wage after considering work-related costs such as fuel and vehicle maintenance,” the survey noted.

The survey further indicated that there was insufficient evidence to award any platform points for ensuring that workers earn at least a local living wage after expenses.

To determine minimum wages, the survey utilised local government notifications. For instance, in Bengaluru, data from the Government of Karnataka’s labour department were used to determine the hourly minimum wage figures for semi-skilled (Rs 78.1) and skilled (Rs 84.3) categories (domestic services).

Overall, BigBasket, Swiggy, Urban Company, and Zomato remained at the top, scoring 6 out of 10.

BluSmart scored 5 out of 10; Zepto scored 4 out of 10; Amazon Flex scored 2 out of 10; Flipkart scored 1 out of 10; and Ola, Porter, and Uber scored 0 out of 10.