Why in the News?

Amid the ongoing evolution of the “gig worker” concept, India recently witnessed a groundbreaking movement a nationwide digital strike organized by women gig workers this Deepavali.

What are the specific exploitative practices faced by gig workers?

• Wage Theft and High Commissions: Many gig workers receive only a fraction of their earnings after substantial deductions for company commissions, which can range from 10% to 35% of their total income. This often leaves them with minimal take-home pay, insufficient to meet basic living expenses.
• Forced Purchases and Costs: Workers are often required to buy product kits at full retail prices from their employers, which further erodes their earnings. This practice restricts their ability to purchase necessary supplies at more affordable wholesale rates.
• Job Insecurity and Rating Systems: Gig workers are subjected to biased rating systems that can lead to job insecurity. If they refuse “auto-assigned” jobs or fail to meet performance metrics, they risk being blocked from the platform or terminated without recourse.
• Lack of Social Security: Gig workers are excluded from essential benefits such as minimum wages, health protections, and social security rights, leaving them vulnerable in times of need.

How do platform dynamics contribute to labour exploitation?

• Misclassification of Workers: Gig workers are often classified as independent contractors rather than employees, which denies them access to fundamental labour rights and protections. This legal loophole allows companies to evade responsibilities related to wages and benefits.
• Algorithmic Control: Companies utilize complex algorithms to manage worker assignments and ratings, creating a system where workers are constantly monitored and evaluated based on performance metrics that may not accurately reflect their work quality.
• Patriarchal Structures: The gig economy perpetuates existing patriarchal norms by relegating women to traditionally female roles such as beauticians and housekeepers, limiting their job options and negotiating power within the labour market.

What measures can address and combat labour exploitation in this sector? (Way forward)

• Legal Recognition as Employees: Governments should legislate the recognition of gig workers as employees rather than independent contractors, thereby extending labour rights such as minimum wage laws and social security benefits.
• Regulatory Frameworks: Establishing comprehensive labour laws specific to the gig economy would help protect workers’ rights. This includes mechanisms for grievance redressal, ensuring fair treatment and accountability from platform companies.
• Collective Bargaining Rights: Supporting unionization efforts like those of the Gig and Platform Services Workers Union (GIPSWU) can empower workers to negotiate better wages and working conditions collectively. This grassroots organizing is crucial for achieving meaningful change in labour practices within the sector

Mains PYQ:

Q Examine the role of ‘Gig Economy’ in the process of empowerment of women in India.  (UPSC IAS/2021)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now