Unstable platforms

Gig work urgently needs a legal framework

India’s gig economy is booming but those employed at the bottom of the pyramid are subject to difficult conditions, according to a recent multicity survey of over 10,000 cab drivers and delivery persons. Titled “Prisoners on Wheels”, the survey, conducted by the University of Pennsylvania and Indian Federation of App-based Transport Workers, revealed a picture of overwork, financial struggle, caste discrimination, and arbitrary work cultures. For instance, nearly 83 per cent of cab drivers and 78 per cent of delivery persons reported working for more than 10 hours a day; overall, about 60 per cent work over 12 hours. Worse, over 60 per cent of drivers from Scheduled Castes and Scheduled Tribes work over 16 hours a day, compared to 16 per cent in the unreserved category. Overwork also appears to be a 24x7 problem for most; 48 per cent of delivery persons and 40 per cent of drivers reported no weekly off days.

The irony of this overwork is that it hasn’t made gig workers prosperous. Though several of these platforms command premiums on the stock markets with executives earning hefty stock options, almost 43 per cent of the participants said they earned less than Rs 500 a day, or roughly Rs 15,000 a month, after deducting all costs. About a third of delivery workers earn less than Rs 10,000. The majority in both categories expressed dissatisfaction with fares and rates, with cab drivers complaining of higher than officially claimed deductions of 20 per cent. Work conditions were also toxic with a little under half of those surveyed reporting violence at work, arbitrary ID deactivation, and customer misbehaviour.

Even accounting for some amount of overstatement by those surveyed, the overall picture is concerning. There are over seven million gig workers in the country, a figure that could rise to 23.5 million by 2030. Most of them are young men entering the workforce and are likely to be migrants. Work conditions such as these are likely to add to mental and physical health issues and rising road accidents. The predicament of these workers reflects the fact that they fall between the cracks of labour laws, which do not cover the nature of their work. In 2020, a draft labour code sought to define their status as a person who participates in a work arrangement “outside of traditional employer-employee status” and suggested that they be entitled to accident, health, and retirement benefits that would be funded through contributions by state and central governments as well as the platforms. The platforms said they were ready to contribute to a transparently run welfare fund. In fact, one of the labour codes passed by Parliament does provide some protection to gig workers, but unfortunately, the rules have not been framed at the all-India level.

Though the survey indicates the need for robust legislative protection for gig workers, the challenge for the government is to maintain a balance between ensuring the rights of gig workers and seeing that the growth of a sector that remains a dynamic job creator is not stifled. It would be important, for instance, not to impose the kind of labour protection laws that have, in fact, proved detrimental to Indian labour by stifling the growth of formal employment. But the need for a legal framework for gig workers should be a priority for the next government.