How can gig workers regain their negotiation power and build a collective voice?
To answer the question, the WageIndicator Gig Team will host a new webinar on October 27, 2023, called ‘A Level Playing Field for Gig Workers.’
During this event, we want to explore different solutions to the power imbalance that make platforms decide the game’s rules without consulting workers.
From collective bargaining to worker-run cooperatives to regulation, we will map actions and initiatives worldwide with this purpose.
Curious? You can already secure your spot by visiting the event’s webpage:
Super-apps and green jackets: lessons on the gig economy from Indonesia
Grab and Gojek, apps that serve many kinds of purposes, are centralizing and formalizing Indonesia's informal labor market. What problems are associated with this? And what does this teach us about the gig economy worldwide?
Martijn Arets explores in the new episode of The Gig Work Podcast:
Do you want to listen to the other episodes? You can find them in the Podcast section on Gigpedia.
Is Unpaid Work Endemic in Platform Work?
In this video, Prof. Valeria Pulignano, panel discussion moderator of our next gig webinar and Principal Investigator of the project ResPecTMe at KU Leuven, presents the main findings of their research.
Financed by the European Research Council, ResPecTMe examines digital platforms in eight European countries to identify the different forms of unpaid labor, depending on the sectors analyzed and the platform type and governance systems.
Pulignano explains why and when platform workers tend to be more exposed to the risk of unpaid labor and how they contest this condition.
Dear reader,
Wolt riders held a protest in Belgrade, Serbia, at the end of July: they asked the management to explain how their pay is calculated and provide improved workplace safety.
It has not been the first time: they have already gathered at the company’s headquarters in April, demanding a pay increase and more transparency on the system that offers them work. According to them, no reply came from Wolt, while Wolt claimed they had not received any official requests.
The Sindikat dostavljača also raised concerns about the company's practice of not supporting workers, being treated as independent contractors, or hired through intermediary agencies. On Twitter, the union said it would send a letter to the Prime Minister and the Minister of Labor asking for a solution to the problems of Serbian digital platform workers.
As these riders pointed out during the strike, and as the Fairwork Serbia Report 2022 also underlined, the employment model of many platforms in Serbia mainly relies on third parties offering “partnership agreements,” leaving riders and drivers without adequate rights or protections.
However, despite everything, did you know platform work continues to be attractive to the Serbian population?
The platform economy represents an opportunity to access the labor market more quickly, and this applies especially to a younger workforce often facing high entry barriers and being fond of technology and flexibility.
Earnings that exceed average wages also attract delivery workers. Fairwork interviewees confirmed they could make twice as much as their family members.
Workers usually sign standard labor contracts with third-party agencies, still only for limited working days or hours. They are entitled to social benefits based on this amount of work, but the agencies do not inform them of this and many other details (for example, the correct job description).
Secondly, Serbia is not exempt from subcontracting, but in its case, self-employed people are legally allowed to ‘hire’ up to ten workers. The system registers a sole trader who pays the people under him. This arrangement keeps them out of any kind of social protection benefits.
Thirdly, the Serbian legal system still needs to recognize the principle of subordination of suppliers to the parent companies. Therefore, platforms have a vast space to operate without being monitored.
As you can read, policymaking and regulation should be the first step toward better working conditions for Wolt riders willing to strike again.
Various actions have been initiated to address the risks food delivery workers face at work, and some platforms organize training for their delivery drivers. Anyway, a traffic safety law needs to be passed, which poses dangers for riders rushing to achieve bonus rewards for a high number of daily deliveries.
What are platforms doing to solve the issue?
In both Fairwork reports (2021, 2022), Wolt scored maximum points for the principles of fair pay and fair conditions.
Strikes will show us if it deserves the two points scored for fair management; however, fair contracts and support for workers’ actions (fair representation) are still missing.
From 2021 to 2022, the home service platform, Uradi-zarad went from 4 to 6 out of 10 points, showing faults in representation.
Glovo still needs to demonstrate that it can guarantee fair contracts or assure freedom of association (fair representation).
Finally, Mr.D's entry into Fairwork research could have been better: the company scored zero points.
But much more has happened in the last two weeks; you can find a summary in this newsletter.
Have a nice day,
The WageIndicator Gig Team
Other news you can’t miss:
- In Argentina, the Taxi Workers Union (Sindicato de Peones de Taxis) has not ruled out the possibility of an indefinite strike in Rosario against the Uber and Cabify applications that operate despite not having municipal authorization. This discontent unites many towns since ‘regular’ taxi drivers notice increased Uber units on the streets. In the meantime, the Council refused to take Uber into account in the regulation discussion: ‘We have to separate Uber from legal transport applications.’ they said.
- In Spain, the food delivery company Getir agreed on a compensation package for workers left jobless after the decision to leave the country, and Glovo is once again in the spotlight for deactivating Valencian riders without notice.
- In the United Kingdom, the High Court confirmed that a passenger enters into a contract of hire with the minicab operator, not the driver, making the case of Uber Britannia Limited v Sefton Metropolitan Borough Council & Ors a landmark in the sector. “A properly regulated and remunerated pool of drivers benefits public safety,” the judge added in her comments.
- Finally, thirteen DoorDash delivery workers filed complaints in the United States against the company between July 26 and August 1, alleging wage theft, cases now being investigated by the city Department of Consumer and Worker Protection.
Argentina - The city of Puerto Iguazú was the scene of a massive demonstration by taxi drivers who expressed their firm rejection of the arrival of Uber.
Germany - In times of rising prices, salary fluctuations affect delivery workers’ capacity to earn a decent income. At the same time, Lieferando still contests the election of work councils in at least four cities.
India
- Kolkata Urban Company workers presented a delegation to the Labor Department of Gurugam to discuss their illegal termination and arbitrary ID blocking.
- Urban Company workers attended their first general body meeting and committee formation in Mumbai.
Insight: Urban Company scored eight out of 10 points in the Fairwork India Report 2020, slipping to five in 2021.
Since the start of the year, thousands of workers have found themselves arbitrarily blocked after failing to meet new, higher company targets.
Did you know? As per the Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023, all gig workers will have the right to have an opportunity to be heard for any grievance and will be provided a unique identification (ID) applicable across all platforms.
The Bill provides for the creation of a welfare board for the implementation of its provisions.
Indonesia - Reportedly, Grab earned 89.8 million dollars in revenue last year from the GrabRentals private car rental business, although it still recorded a loss.
Nigeria
- E-hailing drivers, members of the Amalgamated Union of App-based Transport Workers Union, have threatened to boycott Uber, Bolt, and other apps to join the Nigerian Labor Congress’s strike against anti-poor policies of the Federal Government.
- Bolt reportedly discontinued a bonus introduced in June.
Report: On average, domestic workers in South Africa still earn much lower than the National Minimum Wage.
South Africa - Uber and Bolt haven’t stopped operations despite some drivers joining protests.
Spain - Glovo riders rallied in Palma de Mallorca against their work conditions.
Did you know? VTCs (Transport Vehicles with Driver) working for platforms like Uber or Cabify are involved in more than twice as many traffic accidents as taxis in Madrid, according to data from the Municipal Police.
UK - Many are criticizing the Secretary of State for Work and Pensions, Mel Stride, for suggesting unemployed over-50s should consider becoming delivery riders and lauding flexible working at firms such as Deliveroo.
US
- A violent armed robbery against a Uber driver in Zion (Illinois) drew attention again to these workers’ safety issues. Drivers spoke before Uber’s Hub to condemn the company’s handling of armed robberies.
- Riders under the aegis of the Worker’s Justice Project assembled before the NY County Courthouse advocating for minimum pay for delivery app workers. Companies pushed back against mandated wages.
- The University of Washington Information School released a study stressing arbitrary and excessive terminations of drivers and a widespread failure to inform drivers of the reason for their termination. However, most drivers were reinstated after receiving culturally competent union representation.
Argentina
- Uber has reported customers increasing use of safety options.
- Uber launched in Iguazù after disembarking in Bariloche, Ushuaia, and San Martín de los Andes.
Grocery and food delivery company Getir announced that it would officially pull out of Spain, Italy, and Portugal as it inched closer to finalizing an investment round. It also confirmed that it would continue to operate in the United Kingdom, the United States, Germany, the Netherlands, and Turkey. Getir’s retreat comes as it faces a major cash crisis.
France - Undocumented food delivery workers denounced being attacked during their work shifts.
India
- Zomato reported its first quarterly profit.
- Zomato has introduced a flat Rs 2 platform fee on its food delivery app, following a similar move announced by rival Swiggy.
Kenya - Online work platform Upwork has recently updated its terms for Kenyan users, stating that value-added tax (VAT) must now be collected and remitted to the Kenyan Revenue Authority (KRA).
Mexico - Based on the "Uber Eats and SMEs in Mexico 2023" survey, 60 percent of companies active in the food delivery application are small and medium-sized businesses.
Singapore - The Indonesian super app Gojek has signed a long-term partnership with Deliveroo to bring new offerings to both platforms.
South Africa - Uber Eats is partnering with the Gauteng provincial government to create thousands of courier jobs over three years. The company will also invest R200 million in township restaurant and "dark kitchen" development.
Did you know? A competition commission’s inquiry, resulting from two years of investigation into local and international online platform markets, identified some features that adversely affect competition. Uber Eats, and Mr. D Food were given time to implement remedial actions.
Spain
- Cabify published its global turnover for the first time, stating that it reached total revenues of 688 million dollars (626 million euros), 32% more than the previous year.
- Cabify has reached a strategic agreement with electric utility company Iberdrola to promote the electrification of its fleet.
US
- Uber reported its first-ever operating profit and booked a record number of rides worldwide. However, the pace of growth has decelerated from pandemic highs.
- DoorDash said revenue rose 33% to $2.1 billion, setting new records for total orders.
Did you know? The Massachusetts State Auditor's Office will analyze food delivery and ride-sharing companies' impacts on state benefit programs and tax payment systems. Uber and Lyft treat their workers as independent contractors.
Vietnam - The Indonesian super app Gojek announced that its food delivery feature, GoFood, is now available on payments app MoMo.
Portugal - Five more couriers claimed a contract with Glovo before the Porto Labor Court. In July, a hearing of the lawsuit filed by a courier against the same company ended without agreement.
Argentina
- Councilor in Rosario presented a draft ordinance to propose that Uber prioritize hiring taxis and remises. This way, it would try to regularize its operation and avoid unfair competition. However, during the meeting with taxi sector representatives on August 7, the Council's Public Services Commission expressly left Uber out of the discussion and mentioned only the transport applications authorized to operate.
- The Municipality of Paraná has begun detaining vehicles operating through the Uber application. The platform is not authorized to conduct the taxi driving service in the province of Entre Ríos.
- Recently, Rappi workers in Córdoba have denounced a wave of robberies and assaults.
Spain - A Government meeting with the taxi sector ended with the commitment to approve a decree law that avoids total liberalization and limits the entry into the Balearic Islands of more VTCs such as Uber, Cabify, or Bolt.
Did you know? On August 5, 2023, the Ley Rider turned two. Despite repeated warnings from the Labor Inspectorate, Glovo failed to comply with the legislation. The Secretary of State for Labor assures that an injunction has been sent, but the platform denies receiving it. He says more than 17,500 self-employed workers have been regularized in the year’s first seven months.
US
- Three Minneapolis council members proposed an ordinance to create minimum payment levels for Uber and Lyft drivers. Governor Tim Walz vetoed statewide legislation in May.
Did you know? Two new ballot initiatives in Massachusetts could overhaul gig workers’ rights: a political committee called Flexibility and Benefits for Massachusetts Drivers wants to limit the state’s Uber and Lyft workers to be independent contractors, potentially in exchange for benefits. A rival ballot initiative proposed by a Drivers Demand Justice coalition would give ride-hailing drivers the right to unionize.