On the peril path?

The role and responsibilities of Gig Worker (GW) is different from traditional permanent employment. Payment is made based on the work completed, not on the basis of attendance. In another words, the gig economy is a labour market characterised by temporary contracts rather than permanent positions. People earn money from providing on-demand work, services, or goods.

A wide variety of positions fall into the category of gig work. The work can range from managing short-term rentals, tutoring, writing code, to driving for delivery services.

The gig economy experienced significant growth in 2020. COVID-19 lockdowns forced people to work from home and rely more on purchasing goods and services online and these trends continued even after restrictions were lifted.

Trends show about 47 per cent of the gig work is in medium-skilled jobs, about 22 per cent in high-skilled jobs and about 31 per cent in low-skilled jobs.

This article focuses primarily on gig work pertaining to delivery of food and other materials for various platforms like Swiggy, Zomato, etc.

Post-COVID 19 discussions

Post Covid 19, there have been discussions among the academicians, think tanks and society in general, on the relevance of gig work. Additionally, there is concern about the business model, which is largely one-sided, offering no social security or financial support. Some argue that gig workers should not become another group of people exploited to maximize profits for businesses, akin to the conditions seen during the industrial revolution, where exploitation was rampant and social security was minimal or non-existent.

Let’s address these issues one by one.

Growth and future of the gig economy in India

As per NITI Aayog, in India, between 2020-2022, 77 lakh (7.7 million) workers were engaged in the gig economy, and it is expected to grow to 2.35 crore (23.5 million) workers by 2029-2030.

Trends show that the concentration of workers in medium-skilled jobs is gradually declining while that in both low-skilled and high-skilled gig work is increasing. In the future, gig work across other skill sets is likely to emerge.

The gig economy is sustainable and will continue to grow, benefiting all stakeholders. For consumers, it has become an integral part of their daily life and is convenient, time-saving, and offers a wide variety of choices. It is especially useful for people like single mothers, the elderly, those who are ill, etc. as it provides hassle free purchasing options that avoid being stuck in traffic or going shop to shop, negotiating the rates and refundable options.

However, few argue that it doesn’t offer the same social experience as going out with friends or relatives to enjoy the outdoors with their company. It also limits the ability to see and experience things firsthand.

The manufacturers are also reaching a wider customer base which helps them evolve mechanisms to reevaluate their strategies, like understanding the needs of various age groups in different locations and adjusting their product mix and pricing.

Maturing gig economy

The gig economy is still in the process of maturing. This is the right time to make it agile enough to face both current and future challenges.

Roles played by platform owners, gig workers and government

There are three major parties involved besides the consumers, i.e. platform owners, gig workers and the government, each having a critical role to play.

1. Gig workers: They have to improve their communication skills, technical abilities, professional mannerisms, etc. Employers must support gig workers in various ways. More Importantly, they have to work on improving working conditions/services. Delivery points, such as malls and hotels, need to treat gig workers well, making their environment more comfortable and respectful. For instance, ‘Fresh Work’, despite having USD 1 billion in its account and planning a buyback, fired its workers with little regard to their well-being.

2. Government: Governments need to find ways to secure gig workers' livelihoods, ensuring their safety, financial security, etc. Existing labour laws that safeguard workers do not directly extend to gig workers, leaving them vulnerable and undermining the century-old efforts to secure such protections. The Code on Social Security (2020) recognized gig and platform workers for the first time, including provisions to frame social security schemes and establish a Social Security Fund.

Recently, the central government has taken concrete steps to address the issues like social security, health insurance and pension. Karnataka government also plans to introduce Bills in its Assembly session to impose a cess on aggregators, which will only apply to transport services and not the purchase of products. Similarly, states like Jharkhand, Rajasthan, Telangana, Tamil Nadu, and others are taking action to protect gig workers and provide financial support, health and safety measures, and even children’s education benefits.

However, these provisions need to be implemented effectively and not remain merely on paper.

3. Platform owners: platform owners need to take worker protection more seriously. Despite ongoing conversations about the rights of platform workers, there are no substantial benefits provided to platform-based workers. While it may appear that extensive efforts are being made on their behalf, in reality, these workers continue to operate with minimal social protection and security.

The future of the gig economy

All stakeholders need to take one thing into consideration, that the gig economy is a new economy, addressing new-world needs. Thus, utmost care must be taken while addressing specific issues since the same are cropping up under absolutely novel circumstances to address the needs of mainly the new generations. The traditional approach like existing laws, labour codes, trade union rules etc. may not be suitable to address issues of gig workforce, nor should it be.

We must grow alongside the gig workers and not at their expense. We cannot return to the exploitative conditions under the industrial revolution.

Views expressed are personal