We’re talking about minimum conditions for the gig economy, but why?
The number of workers entering the gig economy is rising fast – here and overseas. In fact, one report suggests the number of independent workers in the US is expected to reach 54 million by 2020. And why? Because apparently, they’re choosing “greater control and flexibility – and in many instances, higher income”. Sounds like a no brainer.
On the radar and facing scrutiny
It’s no wonder, then, that platforms like Uber, Deliveroo, Foodora, and Airtasker enjoyed a decent honeymoon period – congratulated among bored and frustrated workers (and the previously unemployed) who were awe-struck by their innovative smarts and new ‘no strings attached’ opportunities. It seemed they could do no wrong. Or could they?
As these gig economy platforms continue to gain momentum, it’s perhaps unsurprising they’re starting to face increased scrutiny from the powers that be. This is because both Government and (some) gig workers are struggling to work out exactly where these new-generation casual working arrangements fit in with our previously unaffected ideals around workers’ rights and entitlements. And everything must be in a box and duly labelled, right?
It’s a tangled web we’re weaving
A landmark ruling in the UK in October 2016 found Uber drivers were actually employees, not self-employed as the self-proclaimed tech company, Uber, had claimed. But while Uber then went on to lose its appeal against the decision in November 2017, Deliveroo was successful defending a similar case brought by a UK union. In Deliveroo’s case, it was ruled the delivery app’s couriers were self-employed.
Now – similar conversations are taking place here in Australia. The Australian Council of Trade Unions is pushing hard to get gig economy workers the same minimum conditions as employees. Yep – it sure is turning out to be a sticky mess.
Are we forgetting what gig work is all about?
There’s certainly a conversation to be had as the labour market evolves along with new technology – after all, we can’t ever allow our workers to be exploited. But one big question remains: Are we at risk of losing the plot – that is, everything these gig platforms set out to achieve and why they lured so many gig workers in the first place?
Could it be fairly argued that voluntary gig workers who might expect the same securities of permanent employees are actually wanting their cake and eating it too?
Well – there’s only one real way to answer that question, and that’s by appreciating who gig workers really are, their motivations and understanding how many of them have been turning gig work to their best advantage (without the aid of unions!)
Only recently, it was reported that one Airtasker removalist, Jesse Gonzales, earned $98,000 through the platform in 2017, while painter Diz Jangra was reported to earn $178,000 during the same year. That’s almost 3 times the Australian average annual salary!
According to the Australian Financial Review, Gonzales dismisses concerns about minimum conditions in the gig economy because workers should aim to use the platforms as a springboard for their own business interests. He says if anything made these platforms too expensive for customers, it’d reduce the liquidity which was their main attraction.
It’s about choice and taking responsibility
And that’s just it – in amongst all this debate about prescribed working conditions, there’s a valid argument to suggest that in a free market, we’re actually talking about a brand-new entrepreneurial-style working choice that’s all about taking responsibility for your own fortunes, working patterns and security – and it suits many people very much.
While it’s fair to say removalist, Gonzales, clearly doesn’t think of himself as being under Airtasker’s duty of care, painter Jangra also told news.com.au that good work and positive reviews is what’s needed to get the work he needs.
In any event, when it comes to those “minimum conditions” such as holiday, sick pay, superannuation and insurances, it appears some gig workers might already be on the front foot – despite the absence of the type of formal arrangements associated with permanent contracts.
A Go People delivery Runner with a van could earn just over $72,000 per year working a 40-hour week. To put that in perspective, the median annual salary for a courier in Australia is just under $48,000. In this case, just like Gonzales’ $98,000 per year removalist job, it’s entirely possible the extra $24,000 over industry standard could absorb the occasional sick day, holiday and super – but the point is, it’s about affording those workers the entrepreneurial freedom and choice to take control of their own income and security. And of course, some will be more successful than others.