Trade Union-Gig Economy Interplay

What is the issue?

Trade unions are actively engaging with the emergent gig economy, bridging the gaps between platforms and workers.

Trade unions are adapting quickly to new-age ways of organising and collective bargaining.
Gig worker federations have initiated social media training for members as a newer means of organising workers.
Urban Company (a home-based service platform) announced a 12-point agenda to improve the working conditions of its worker-partners after social media highlighted lapses.
GST Council considered making e-commerce operators (ECOs) in food delivery such as Swiggy and Zomato liable to pay the GST on restaurant services supplied through them.

Significance

Trade unions are predicated on traditional employment, while the gig economy relies on flexibility and heterogeneity.
Given this inherent dichotomy, the trade union-gig economy interplay is noteworthy.

California’s AB5 law (passed with the efforts of trade unions) - Entitles independent contractors to ‘employee’ status.
The recent invalidation of Proposition 22 (enacted in opposition to AB5) has resulted from trade union activity.
New York - Platforms and trade unions are negotiating a middle-path, ensuring minimum pay and other benefits to independent contractors.
This is in exchange for trade unions giving up demands for ‘employee’ status; a legislation is expected soon.
The recently proposed Protecting the Right to Organise Act, 2021 (PRO Act) in the US expands the scope of worker rights to organise and collectively bargain.
UK - The Supreme Court unanimously held that drivers on a popular ride-hailing platform were “workers,” making them eligible for social security benefits.
This improves the potential for collaboration between platforms and trade unions on issues including earnings, representation, organising and pensions.

Multiple gig worker organisations have emerged in India.
Claiming significant membership, they seek to address wide-ranging concerns (including wages, compensation and working conditions) and not solely social security.
Formation of an ‘umbrella union’ of gig workers across the country.
A petition is filed at the Supreme Court, seeking social security benefits for gig and platform workers as “workmen” under existing legislation.

The dearth of traditional employment opportunities in India, and the low entry barriers for gig work.
In the absence of traditional ‘jobs’, gig workers may lack the incentive to organise and bargain for ‘rights’.

Pandemic-induced dependence on gig workers
Issues highlighted via gig worker unions
Enactment of the Code on Social Security, 2020
Increasing social media engagement - Becoming a potent tool to represent issues and negotiate with platforms.

Reference