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To illustrate the changes and challenges associated with 4IR, this article
addresses gig work. This material is new to the extent that the terminology
and its analysis have only emerged within the past five years. It captures
many of the issues and challenges associated with 4IR, which we will highlight
through an analysis of gig work. The article draws on evidence from the UK
and Australia to consider implications for the 4IR.
The First Industrial Revolution used water and steam power to mechanize
production. The Second used electric power to create mass production.
The Third used electronics and information technology to automate
production. Now a Fourth Industrial Revolution is building on the
Third, the digital revolution that has been occurring since the middle
of the last century. It is characterized by a fusion of technologies that is
blurring the lines between the physical, digital, and biological spheres.
New technologies thus have the potential to transform work and workplaces,
displace jobs, create new jobs, and impact living conditions. An optimistic sce-
nario suggests that gig work can increase savings, productivity, and flexibility.2
A pessimistic scenario suggests major job losses, increased insecurity in employ-
ment, de-skilling, and growing inequalities; indeed, many of the “new” forms of
work are seen as variations of old forms of day labor and irregular employment.3
In turn there are many predictions that set out the sectors, industries, and jobs
that are most affected by the technological developments associated with 4IR. For
example, a report by McKinsey & Company suggested that automation will “...
accelerate the shift in required job skills that we have seen over the past 15 years...
the strongest growth in demand will be for technological skills, the smallest cat-
egory today which will rise by 55 percent and by 2030 will represent 17 percent
of hours worked, up from 11 percent in 2016.” In contrast, “basic cognitive skills,
which include basic data input and processing, will decline by 15 percent, falling
to 14 percent of hours worked, from 18 percent.”4
In a literature review of three emerging technologies the Chartered Institute
of Personnel and Development suggested that there was very little systematic
evidence that detailed the impact of the technologies on work and workplaces.i In
addition, it found that much of the research was based on anecdote and specula-
tion and that the available evidence suggested that “technology is augmenting
what people are doing and enabling some degree of role expansion for employees.”5
Such predictions are very dependent on access to and the application of tech-
nology; the industrial structure of the economies being examined; the policies sur-
rounding employment, investment, and research; and the infrastructure available
to support the new technologies. The many predictions and scenarios are based on
the characteristics of an advanced economy; it is doubtful that the impact of such
labor market and living standards are as significant in developing economies. Into
these futuristic discussions, gig work has emerged as an issue that manifests many
of the features of 4IR: platform-based; driven by mobile and digital technology;
containing conditions of easy entry for providers and workers; and from daily
observation, appearing to be extensive in urban environments as large numbers of
delivery agents pedal and ride across cities delivering their cargoes of pre-prepared
food. Gig work is a suitable starting point to examine the “new” economy in action
and to consider its growth, operations, and consequences.
i
The three emerging technologies were artificial intelligence, including machine learning and cognitive
computing; robotics, including service robots, robot-assisted procedures, and robotic process automation (RPA);
and automation technologies in health care and transport.
38
Hence, the purpose of the paper is to explain the nature of gig work. In so
doing we wish to examine how widespread it is and who carries it out. We also
critically examine what is “new” about gig work. As such, we discuss the discourse
about it in terms of two polar views, namely gig work as self-employed and flex-
ible employment versus gig work as a return to on-call labor found in previous
industrial epochs. Finally, we consider some of the implications of gig work from
taxation and welfare to employment regulation and health.
work is too narrow, and that other forms of non-standard work such as temporary
agency work or zero-hours contracts could also be mediated in such a fashion.11
De Stefano, for example, defines gig work as being either “crowd-work,” in which a
number of firms and workers are connected via an online platform, or “on-demand
work,” whereby a single-user firm engages an online platform to match workers
to demand for services.12 It is clear that this latter category definition of gig work
could also be coterminous with agency work. However, temporary work—or con-
tingent work as it is often referred to in the United States—has a longer historical
pedigree, while online platform work has only really emerged as a subject of aca-
demic inquiry in the last five years.13 Thus, it is to this particular form of work that
we devote the remainder of this article.
40
employers, and from the national economy. Under these circumstances, working
through the web creates not only issues with identification and classification, but
also with status, jurisdiction, and regulation. The work may be local or offshore
and, even if it is local, the platform provider or the intermediary may be offshore.
Hence, workforce estimates for online platform companies need to be inter-
preted with a high degree of caution. Stewart and Stanford, for example, suggest
that work mediated through online platforms is relatively insignificant, typically
accounting for less than 1 percent of the workforce in mature industrial econo-
mies.18 The BLS, in its contingent and alternative employment arrangements
supplement, released calculations from 30 September 2018 on “electronically
mediated employment,” and found that such workers in the United States, as of
May 2017, only accounted for about 1 percent of the workforce.19,ii However, Katz
and Krueger suggest that there has been an increase in the share of “alternative
arrangement” workers such as temporary help, on-call, contract, and freelance
workers, from approximately 10 to 15 percent of the workforce between 1995 and
2015.20 They put those workers hired through online intermediaries at 0.5 percent
in 2015, but this is from a base of zero.
Even so, it is notable that estimates of the workforce for the largest platform
providers extend to millions of workers. One example of this is the company Care.
com, which brokers or intermediates domestic services such as child care, pet
care, and household help.21 As such, Smith and Leberstein provide estimates for
the largest online platform providers in terms of workforce, reproduced in Table
1 below.22
Est. Workforce
Company Sector Country Operations
Size
Uber Transportation 160,000 International
Lyft Transportation 50,000 US
Sidecar Transportation 6,000 Major U.S. cities
Handy Home services 5,000 US
Taskrabbit Home services 30,000 International
Care.com Home services 6,600,000 International
Postmates Delivery 10,000 US
Amazon Mechanical Turk Crowdwork 500,000 International
Crowdflower Crowdwork 5,000,000 International
Crowdsource Crowdwork 8,000,000 International
Clickworker Crowdwork 700,000 International
42
than necessarily being liberating for workers, can actually lead to new forms of the
control and commodification of labor.
Writings on the regressive impact of technological change have been extant
for some 40 years. Braverman argues that technological change would de-skill
the workforce because technological advancement typically serves to automate
production processes that previously had required complex mechanical knowledge
and manual procedures.31 This argument is highly relevant to the current setting
of the gig economy, as technology has been seen as a driving factor in simplifying
formerly complex processes, reducing the need for human agency as “routines can
be put in the hands of intelligent machines and then optimized.”32 For example,
it has served to automate the job matching function, through the use of online
platforms such as work-on-demand apps, which reduce job search and matching
costs to firms.33 Hence, gig work, rather than empowering workers as freelancers,
could serve to reinforce the commodification of labor and undermine existing labor
standards.34 This re-commodification is in turn reinforced by the very same apps
that allow the platform owner an enhanced degree of surveillance over the work
process.35 This reiterates Stanford’s point that “the onward march of technology is
neither neutral nor exogenous: what kinds of technologies are developed, how they
are implemented and how they affect work, all reflect the decisions and interests
of competing constituencies.”36
Thus, technological change, rather than reducing the role of intermediaries
on the internet, a process referred to in the literature as disintermediation, has
served to re-intermediate the working relationship between firms and workers. It
has also increasingly served to blur the distinction between “work,” i.e., paid, and
“labor,” i.e., unpaid.37 Platform providers such as Facebook and LinkedIn often
benefit financially, in effect, from the co-creation of content from users who are
not paid workers.38 The highly skewed nature of relative bargaining power between
these firms and gig workers is also apparent in that the largest platform providers
are among the largest companies in the world by value and turnover. Indeed, they
are also significant in employment terms if one considers gig workers dependent
contractors who could be, in effect, disguised employees.39,40
Hence, we may note that dependent contractors, who are otherwise denoted by
the category of “dependent self-employment,” are defined by being self-employed,
with usually only one client.41 Moreover, they have no autonomy at all insofar as
they “receive detailed instructions in how the work is to be done.”42 The border-
less world of online platform work has enabled the extensive use of subcontracting
and outsourcing across countries toward emerging economies, where wage rates are
lower; for example, such is the case in the publishing industry, where editing work
has been outsourced to freelancers in Malaysia and India.43
44
They briefly discuss the possibilities and the problems associated with each of
the potential policy developments. Despite the limitations that are present with
existing labor regulations, they suggest that there is an imperative to re-examine
existing employment legislation, clarify ambiguous employment arrangements, and
strengthen employee rights and benefits, and hence a combination of approaches
is called for.
Minter outlines a case study in Australia where an online employment platform
(AirTasker) negotiated an agreement with unions to ensure that workers employed
on the platform had access to minimum employment standards, including rates
of pay.51 This suggests that collective engagement with online platform providers
is possible. However, the evidence suggests that this is the exception and that the
vast majority of gig workers remain unprotected by virtue of their contingent and
ambiguous employment status.
One of the main areas of contention and public protest is around Uber drive-
share arrangements. There have been publicized protests across the globe, almost
on a daily basis, by the taxi industry that objects to what it sees as the deteriora-
tion in pay and profits. In addition, the taxi industry is concerned by the loss of
value of its licenses as a result of Uber and other online providers, such as Lyft,
whom they see as not complying to the regulations governing taxis.52,53,54,55 This
has, if anything, generated collective solidarity in the taxi industry and promoted
calls for minimum conditions and standard regulations across the sector, including
for Uber. In turn, Uber drivers have protested across many cities against what they
see as Uber unilaterally reducing pay and conditions.56 Similar protests have been
conducted by delivery drivers against online providers such as Deliveroo and Uber
Eats that are accused of unilaterally cutting wages and conditions.57 If anything,
the digital disruption has generated a drive for collective conditions matched by
collective action in industries that traditionally have had few collective employ-
ment standards.
Hence, the emergence of the digital economy and gig work requires a reorienta-
tion of labor laws and employment regulations that were developed in the context
of a different industrial epoch and with a different conceptualization of work,
employment, and the workplace.58 In their conclusion to the discussion of the
implications of labor regulation, Stewart and Stanford suggest that
46
Alex de Ruyter is a professor at Birmingham City University and serves as Director of its
Center for Brexit Studies. De Ruyter focuses his research experience and academic engage-
ment in the areas of globalization, regional economic development, labor market, and social
exclusion issues. He has published more than 60 academic outputs in leading national and
international economic journals and has been the recipient of research funding, including being
an investigator in an ESRC-funded study on the effects on subsequent employment experience
of workers from MG Rover after plant closures in 2005. He has undertaken numerous media
interviews and is currently conducting research on the likely impact of Brexit on the UK auto-
motive supply chain in addition to exploring working in the gig economy. De Ruyter is also a
board member of the Regional Studies Association.
NOTES
1 Klaus Schwab, “The Fourth Industrial Revolution: What It Means and How to Respond,” Foreign
Affairs (12 December 2015).
2 AI Group Workforce Development, “The Emergence of the Gig Economy” (Thought Leader Paper,
Education and Policy Team: August 2016).
3 Jim Stanford, “The Resurgence of Gig Work: Historical and Theoretical Perspectives,” The Economic
48
653–90.
15 Robert Habans, “Is California’s Gig Economy Growing? Exploring Trends in Independent
Contracting” (UCLA Institute for Research on Labor and Employment, Los Angeles: 2016).
16 “Contingent and Alternative Employment Arrangements Summary,” Bureau of Labor Statistics
(BLS) (2018), https://www.bls.gov/news.release/conemp.nr0.htm.
17 Aloisi (2016), 659.
18 Aloisi (2016).
19 “Electronically Mediated Employment,” BLS (2018), https://www.bls.gov/cps/electronically-
mediated-employment.htm.
20 Lawrence F. Katz and Alan B. Krueger, “The Rise and Nature of Alternative Work Arrangements
in the United States, 1995-2015” (working paper, no. 603, Princeton University Industrial Relations
Section, Princeton University, Princeton NJ: 2016).
21 Care.com Official Website, https://www.care.com/en-gb/?rx=Online|CareUSSplash|General|Gen
eral.
22 Rebecca Smith and Sarah Leberstein, “Rights on Demand: Ensuring Workplace Standards and
Worker Security in the On-Demand Economy” (National Employment Law Project, New York: 2015),
3, https://www.nelp.org/wp-content/uploads/Rights-On-Demand-Report.pdf.
23 Carl Shapiro and Hal Varian, Information Rules: A Strategic Guide to the Network Economy (Boston:
Harvard Business School Press, 1999).
24 Lauren Bridges, “Flexible as Freedom? The Dynamics of Creative Industry Work and the Case
Study of the Editor in Publishing,” New Media and Society (February 2017), 5.
25 AI Group Workforce Development (2016).
26 Andrew Hill, “When McKinsey Met Uber: The Gig Economy Comes to Consulting,” Financial
Times (October 2016).
27 Daniel Pink, Free Agent Nation: How America’s New Independent Workers Are Transforming the Way We
Live (New York: Warner Books, Hachette Book Group, 2001).
28 Gideon Kunda, Stephen Barley, and James Evans, “Why Do Contractors Contract? The
Experience of Highly Skilled Technical Professionals in a Contingent Labor Market,” Industrial and
Labor Relations Review 55, no. 2 (February 2002), 234–61.
29 Ian Kirkpatrick et al., “‘Practising What They Preach?’ The Disconnect Between the State as
User and the State as Regulator of Employment Agencies,” International Journal of Human Resource
Management 22, no. 18 (November 2011), 3711–26.
30 Leah Vosko, “Precarious Employment: Towards an Improved Understanding of Labour Market
Insecurity” in Precarious Employment: Understanding Labour Market Insecurity in Canada, Leah Vosko, ed.,
(Montreal: McGill-Queens University Press, 2006).
31 Harry Braverman, Labor and Monopoly Capital: The Degradation of Work in the Twentieth Century (New
48 Ibid.
49 Ibid.
50 Andrew Stewart and Jim Stanford, “Regulating Work in the Gig Economy: What Are the
Options?,” The Economic and Labour Relations Review 28, no. 3 (August 2017), 420–37.
51 Kate Minter (2017).
52 “Melbourne Taxis Warn of More Uber Protests at Tullamarine Airport,” ABC News, 15 August
2017.
53 “Spanish Taxis Block Roads in ‘Anti-Uber’ Protest,” BBC News, July 2018.
54 Patrick Grafton-Green, “London Taxi Protest: Black Cab Drivers Stage Demo Against TfL and
Uber,” London Standard, 15 January 2018.
55 Deborah Kyvrikosaios and Alkis Konstantinidis, “Taxi Drivers Protest Against Uber ‘Invasion’
in Greece,” Reuters News, 6 March 2018.
56 “Uber Drivers Log Off in Australia-Wide Protest Against Low Fares,” Guardian Australia, August
2018.
57 Ashleigh Raper and Lily Mayers, “Delivery Riders Protest Against Uber, Deliveroo, Foodora Pay
Cuts,” ABC News, 14 March 2018.
58 Stanford (2017).
59 Stewart and Stanford (2017), 432.
60 Stanford (2017).
61 Max Neufeind, Florian Ranft, and Jacqueline O’Reilly, “Political Realities and a Reform Agenda
for the Digital Age,” Work in the Digital Age, Max Neufeind, Florian Ranft, and Jacqueline O’Reilly,
eds., (London: Roman and Littlefield, 2018), 537–69.
62 “Global Employment Trends for Youth 2015. Scaling Up Investments in Decent Jobs for Youth”
(ILO, Geneva: 2015).
63 Ibid.
64 Alan Montague, Julia Connell, and Barbara Mumme, “Graduate Employability in Australia: Time
for a VET and HE Overhaul?,” Transitions from Education to Work: Workforce Ready Challenges in the Asia
Pacific, Roslyn Cameron, Subas Dhakal, and John Burgess, eds., (Abingdon: Routledge, 2018), 166–87.
65 AI Group Workforce Development (2016).
66 Montague, Connell, and Mumme (2018).
67 Miloš Kankaraš et al., eds., Skills Matter: Further Results from the Survey of Adult Skills (Paris: OECD
Skills Studies, OECD Publishing, 2016), http://www.theewf.org/uploads/pdf/OECD%20Skills%20
Studies.compressed.pdf.
50