There are already 7.7 million people working in digital platform services, but it is estimated that this figure will triple by 2030. A recently published report indicates that the vast majority do not receive a living wage once the expenses that each person has to do to work. Some Indian states are trying to regulate the sector.
New Delhi (/Agencies) – Most digital platforms in India do not offer decent salaries to their workers, according to the conclusions of the report “Fairwork India Ratings 2024: Labor Standards in the Platform Economy”. Published on Tuesday, the study is the sixth consecutive survey on the conditions of digital workers, revealing that those in the so-called “gig economy” are unable to earn a minimum wage that allows them and their families to maintain an adequate standard of living.
440 workers from 11 platforms (Amazon Flex, BigBasket, BluSmart, Flipkart, Ola, Porter, Swiggy, Uber, Urban Company, Zepto and Zomato) in different cities including Bengaluru, Chennai, Delhi, Kochi and Thiruvananthapuram participated in the survey. analyzing five key factors: equity in wages, working conditions, contracts, management and union representation.
The number of people engaged in the gig economy – it was already growing in India before the pandemic – continues to increase rapidly. According to NITI Aayog, the Indian government’s economic commission, it will increase from 7.7 million current workers to 23.5 million in 2029-30. Trends indicate expansion in various sectors (from transportation to finance to personal well-being), with labor participation ranging between 5% and 12%. It is not only about riders and delivery people hired to make deliveries, but also about engineers and computer experts self-employed, who represent 30% of the casual labor market, according to the portal foundit.com.
According to other reports, Uber has more than a million drivers in India, while Zomato, a popular delivery app, claims to have more than 350,000 partners in the country. Although BigBasket and Urban have introduced a minimum hourly wage policy, neither platform ensures that workers receive a decent wage net of the expenses they incur to work, the Fairwork India report notes. Some Indian states, however, have begun to regulate the sector. Rajasthan, for example, was the first to introduce a law on gig economy workers, with the “Platform Based Gig Workers (Registration and Welfare) Act”, passed on July 24, 2023. This is a law that allows control payments through a Central Information and Transaction Management System. Karnataka has also drafted a similar law to protect the rights of freelancers, providing additional protections not provided by platforms, such as a complaints system and a social security fund funded by government contributions.
The report also finds that platforms such as Amazon Flex, BigBasket, BluSmart, Swiggy, Urban Company, Zepto and Zomato have taken measures to reduce occupational risks by providing safety equipment and regular training. However, only five platforms – BigBasket, Swiggy, Urban Company, Zepto and Zomato – offer accident insurance at no additional cost to workers and compensation for loss of income due to medical reasons.
Furthermore, none of the platforms were willing to recognize workers’ groups or unions. «Despite the numerous cases of protests and worker strikes across the country and the legislative changes that have affected the platform economy over the years, platforms in India refuse to formally recognize collectives of workers or to negotiate with them,” the survey states.
“This year we have seen an increasing focus on the well-being of gig economy workers in political manifestos and legislative initiatives,” they told Scroll researchers Balaji Parthasarathy and Janaki Srinivasan. “However,” they added, “as implementation of these efforts remains uncertain and platforms are redefining the boundaries of benefits, research and advocacy to improve conditions for gig workers remains crucial.”
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