Gig Workers

Gig Workers
News: According to a recent study on app-based workers, gig workers work long hours for minimal pay, with 68% of drivers reporting that their expenses surpass their profits.

Highlights:
• A concerning trend emerges among app-based cab drivers, where nearly one-third log over 14 daily working hours. Furthermore, a significant majority, exceeding 83%, surpass the 10-hour threshold, with 60% extending their shifts beyond 12 hours. 
• Compounding the issue, social disparities exacerbate the situation, particularly impacting drivers from Scheduled Castes (SCs) and Scheduled Tribes (STs), as over 60% within these communities are compelled to work in excess of 14 hours each day.
• Over 43% earn less than ₹500 daily or ₹15,000 monthly after costs. More than 80% of cab drivers and 73% of delivery persons are dissatisfied with company fares and rates, respectively. Notably, 68% of cab drivers face expenses exceeding earnings, leading to potential debt.
• Extended work hours contribute to physical exhaustion, elevating the risk of road traffic accidents. The imposition of 10-minute delivery policies by specific e-commerce platforms further amplifies this risk. Additionally, the absence of social and job security induces stress, potentially leading to health problems. 
• A substantial proportion, with 41% of drivers and 48% of delivery persons, is unable to take a single day off in a week. Furthermore, less than 37% of drivers are affiliated with a union. Noteworthy concerns raised by workers include ID deactivation and instances of customer misbehavior.

Minimum wage policy in India
• The Minimum Wage Policy in India is governed by the Code of Wages Act 2019.
• The Code of Wages Act 2019 endeavors to modernize and enhance the accountability and transparency of existing labor laws in India. It introduces provisions for minimum wages and labor reforms, thereby ensuring uniformity in wage-related matters across sectors and wage ceilings.

Universalization of Provisions:
• The Act universalizes provisions concerning minimum wages and timely payment of wages for all employees, irrespective of their sector or income level. This initiative aims to ensure the Right to Sustenance for every worker and bolster the legal protection of minimum wages.

Floor wages:
• The Central Government holds the authority to establish floor wages, taking into account the living standards of workers, and may set different floor wages for various geographical areas. It is crucial to emphasize that the minimum wages set by either the central or state governments must exceed the established floor wage.
• The Code on Wages Rules, 2020 introduces the concept of a floor wage, granting the central government the authority to establish it according to the minimum living standards of workers. This floor wage acts as a baseline below which state governments are not permitted to set minimum wages.

Geographical variations:
• The Wage Code allows for the establishment of distinct floor-level wages for various geographical areas. However, this has generated concerns regarding the potential relocation of capital and industries from regions with higher wages to areas with lower wage standards.

Who is a ‘gig worker’?
• Gig workers operate outside the conventional employer-employee structure and are categorized into two groups: platform workers, who utilize online platforms, and non-platform workers, who work independently outside of these platforms.
• Gig workers exhibit traits of both employees and independent contractors, defying rigid categorization. Consequently, they face limited recognition within current employment laws and often fall outside the scope of statutory benefits.

Concerns related to gig workers and the proposed labour codes in India:
• Gig workers, excluded from accessing the specialized redressal mechanism under the Industrial Disputes Act, 1947, face a denial of an effective remedy for addressing grievances against their employers.
• Gig workers, excluded from the benefits and protections provided by other proposed labor codes, including minimum wage and occupational safety, are also restricted from forming legally recognized unions.
• Gig workers do not have the right to collective bargaining, which is a fundamental principle of modern labour law crucial to safeguard the rights of workers. 
• A 2022 report by Fairwork India underscored the dismal working conditions of digital platform workers in the country, emphasizing the necessity for statutory affirmation of the rights of gig workers.
• Although the proposed labor codes have obtained the President assent, three years have elapsed without their implementation. The delay is attributed to the states procrastination in framing the necessary rules, as stated by the Centre.

Measures to address the issues related to gig workers:
• Evaluating scale of Gig economy: As of now there exists no authoritative estimate on the total number of gig workers in India, though the centralized nature of the platforms, and the larger platform labor market should make the collating of this data relatively straightforward for the Labor Ministry.
• Making regulations related to Gig economy: A more viable strategy then would involve conditional government partnerships with platforms under some of its flagship schemes. Here, the successful pilot of Swiggy’s Street Food Vendors programme under the PM SVANidhi, or PM Street Vendor’s Atma Nirbhar Nidhi scheme, may prove to be an illustrative example.