In the news

• A recent study conducted by the People’s Association in Grassroots Action and Movements highlights the working conditions and challenges encountered by app-based cab and delivery drivers/persons in India.
• The findings underscore the critical need for enhanced social security measures and regulatory oversight to safeguard the welfare of gig workers in the country.

Key Findings on Gig Workers

• Extended Working Hours: Approximately a third of app-based cab drivers work for over 14 hours daily, with over 83% working more than 10 hours and 60% exceeding 12 hours, reflecting the demanding nature of their work.
• Caste-wise Impact: The study reveals a disproportionate impact on drivers from Scheduled Castes and Tribes, with over 60% working beyond 14 hours compared to only 16% from the unreserved category.
• Financial Strain: More than 43% of participants earn less than ₹500 per day or ₹15,000 monthly after expenses, highlighting the precarious financial situation faced by many workers.
• Financial Hardship: A significant majority (76%) of delivery persons struggle to meet their financial needs, indicative of the economic challenges inherent in the gig economy.
• Other Challenges: Issues such as ID deactivation and customer misbehaviour further compound the difficulties faced by workers in the app-based transport and delivery sector.

Implications of the Report

• Social Disparities: Income disparities exacerbate existing social inequalities, particularly among workers from different caste backgrounds, perpetuating cycles of poverty and distress within these communities.
• Health and Safety Risks: Prolonged working hours contribute to physical exhaustion and increased risk of road traffic accidents, compounded by pressure from e-commerce platforms to achieve rapid delivery times. Lack of social and job security adds to stress levels and poses potential health risks for workers.

Understanding the Gig Economy

• In a gig economy, temporary, flexible jobs are prevalent, with companies often hiring independent contractors and freelancers instead of full-time employees.
• Tech-enabled platforms connect consumers with gig workers for short-term services across various sectors.
• Sectors such as media, real estate, legal, hospitality, and technology are already operating within the gig economy framework, offering opportunities for self-employed individuals, freelancers, and part-time workers.

Key Drivers for Gig Economy Growth

• Changing Work Preferences: Millennials prefer flexible work arrangements over traditional full-time employment, driven by hectic lifestyles and a desire for autonomy.
• Startup Culture: Startups hire contractual freelancers to reduce fixed costs associated with full-time employees, fostering the growth of the gig economy.
• Freelancing Platforms: The proliferation of freelancing platforms facilitates connections between gig workers and businesses, enabling seamless transactions.
• Post-Pandemic Transition: The pandemic has prompted laid-off employees to explore freelance opportunities, contributing to the expansion of the gig economy.

Advantages and Challenges

[A] Advantages for Workers

• Profit through Diversification: Gig workers can supplement their income by engaging in multiple gigs simultaneously.
• Empowerment and Flexibility: Women and retired individuals benefit from the flexibility offered by gig work, empowering them to balance work and personal responsibilities.
• Cost Savings and Convenience: Work-from-home arrangements reduce travel costs and offer convenience to workers, enhancing their overall quality of life.

[B] Advantages for Employers

• Efficiency and Productivity: Gig workers often exhibit higher efficiency and productivity compared to traditional employees, driving business growth.
• Cost Savings: Employers save on benefits, office space, and training costs associated with full-time employment, optimizing resource allocation.

Challenges in the Gig Economy

• Lack of Employment Perks: Gig workers miss out on traditional employee benefits such as pension and gratuity, leading to financial insecurity.
• Job Insecurity: Unfair termination and inadequate wages pose significant challenges for gig workers, contributing to job insecurity.
• Legal Protections: Gig workers lack bargaining power and legal protections, making it difficult to negotiate fair terms with employers.
• Access and Connectivity: The gig economy remains inaccessible to rural populations with limited internet connectivity and infrastructure.

Way Forward

• Policy Reforms: The government must fine-tune existing social security policies to address the unique needs of gig workers, ensuring comprehensive protection and support.
• New Legislation: The centre must thrive in from the Platform-Based Gig Workers (Registration and Welfare) Bill, 2023 recently introduced in Rajasthan Assembly.
• Collaborative Efforts: Stakeholders across sectors should collaborate to establish industry-wide standards and best practices for gig work, promoting fair treatment and equitable opportunities.
• Technology Integration: Leveraging technology can enhance access to gig opportunities and streamline processes for both workers and employers, fostering a more inclusive and efficient gig economy ecosystem.

Conclusion

• The gig economy presents both opportunities and challenges for workers and businesses alike.
• By addressing key issues and fostering a conducive regulatory environment, India can harness the full potential of the gig economy while ensuring the well-being and rights of all stakeholders involved.

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