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Gig economy weighted against 'employee' relationship https://www.smh.com.au/business/workplace/gig-economy-weighted-against-employee-relationship-20200810-p55kex.html
Australian inquiry (in Victoria) on the gig economy finds "Platforms are unapologetic that they have chosen to operate outside the employment regulatory framework."
Could shape the whole labour market.
Australian inquiry (in Victoria) on the gig economy finds "Platforms are unapologetic that they have chosen to operate outside the employment regulatory framework."
Could shape the whole labour market.
Two reasons that understanding how the gig economy works is critical, immediately:
1. The gig economy is poised to grow. Why? There is always a rise in on-demand employment in the wake of a recession. This is the first recession where apps were widely available and used. +
1. The gig economy is poised to grow. Why? There is always a rise in on-demand employment in the wake of a recession. This is the first recession where apps were widely available and used. +
The post-Covid economy provides three drivers of why the gig economy/demand for on-demand labour will grow:
a) businesses' that are trying to stay afloat with lower volumes/revenues. Will try to trim labour costs where possible.
a) businesses' that are trying to stay afloat with lower volumes/revenues. Will try to trim labour costs where possible.
b) consumers will be looking for deals (cheaper, faster, more convenient) often online, because their purchasing power is down (less hours of paid work)
c) workers will be looking for more side-hustle, because lower and less predictable hours of paid work.
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c) workers will be looking for more side-hustle, because lower and less predictable hours of paid work.
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Three drivers of the growth in the gig economy (pressures on biz, consumer and workers) means it's likely to expand (though we don't accurately know how big it is now, or reliably track it).
And that's an issue because it is the most unregulated part of the labour market. +
And that's an issue because it is the most unregulated part of the labour market. +
The AUS report shows how the gig economy (in particular, digital apps) break the employer-employee relationship by saying workers can't be classified as *their* workers. This misclassification strips workers of statutory legal rights (employment standards, health/safety) +
This has spillover effects on the rest of the job market, reinforcing the idea that it's okay to shift risk, that everyone is just doing their own thing, no-one is connected in relationship, that nobody needs to protect anyone else. It is the apotheosis of the neoliberal agenda +
So, in the wake of pandemic, we are likely to see the rise in demand for on-demand labour, the part of the labour market that is most unregulated, most likely to exploit, least likely to protect workers...and many biz, consumers, workers will be OK with that [PRESSURES] +
Now, in the post-Covid period we are going to become increasingly reliant on workers. Their incomes support the biggest driver of GDP (household spending) and their taxes are the most important source of revenues for the quality of life of everyone. +
This new reality is not "recovery" related, but will last for decades, due to population aging. The working age cohort will be the smallest in half a century. The size of population their work supports (too old, too sick, and too young to work) will be the biggest in history. +
So it matters how ALL workers are treated, and particularly when predictable loss of worker rights due to cost pressures are highly "infectious" in more stable sectors of the labour market.
Exploitation in the gig economy will occur. It is important to contain the contagion. +
Exploitation in the gig economy will occur. It is important to contain the contagion. +
We need to learn from each others' studies of the gig economy (it's happening around the world) and other nations' ways to a) regulate this labour market and b) support workers (both incomes and services).
This is the new normal, the key issue for policy-makers post Covid.
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This is the new normal, the key issue for policy-makers post Covid.
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