Professional Documents
Culture Documents
he labour platform economy markets, platforms set the price for the tasks to
can be divided in two be fulfilled, and can decide what to pay for the
segments: ‘on location’ and labour, which is a form of monopsony behaviour
‘online’ where workers carry that distorts the market itself. Platforms can
out tasks remotely (also known therefore act as ‘market setters’ in contravention
as crowd work). Workers in the of fair business and employer practice. This is an
‘on-location’ platform economy issue that all platform workers are faced with –
are often known as ‘gig workers’. whatever their employment status.
They work to provide services
such as passenger transport This situation is not sustainable. Control is a key
(ride-hailing), food and test of employment under the law. The fiction of
goods delivery, road freight a neutral online ‘service’ can only be sustained
transportation, cleaning and if the reality of the technological forms of labour
other personal or professional services. control used by the platforms is ignored. In the
on-location platform economy, app employers
Since their inception, on-location platforms control how and when work is carried out since
have claimed that they provide a technology workers are minutely controlled by a mixture of:
solution that allows ‘independent contractors’
to connect to demand via an application in M conditions imposed by the app and its terms
return for a commission, and that they are of service (types of vehicle/equipment used,
markets matching demand to labour supply. the sequencing of tasks, control over access
This enabled them to sell themselves as online to customers);
services rather than employers, and has led to M continuous monitoring via the app that
significant labour cost advantages for them collects at minimum live location data and
(estimates of their labour cost saving range from working time and speed, accepted and
€6,000 Euros to $24,000 Dollars per worker declined tasks, user comments and ratings, as
per year in Spain and California respectively), as well as offline times;
well as immense tax savings. The price and risks M positive and negative incentives - including
attached to these jobs were strictly pushed onto ratings by customers, temporary blocks on
workers, many of whom could be considered use of the app, demand-related pay and
as false self-employed. Across the world many pricing, bonuses for rapid task completion.
of these workers are migrant workers who
struggle to find formal employment. Platforms
are therefore exploiting some of the most
vulnerable workers in society. As matching
Due to constraints on data portability, many (1) historically many flexible forms of work have
workers are also dependent on the platform they been accommodated by regulation (part-time
use most to accumulate favourable ratings or work, agency work etc), and so could the needs
rankings – which most of the time they are not of on-location platform workers, if they were
able to delete or amend. correctly classified;
Most platforms oppose the classification of (2) there are enough testimonies and
workers as employees, arguing instead for spontaneous organising efforts in the platform
a special category (with notable exceptions economy to show the despair of workers over the
being Foodora and JustEats in Europe). They lack of protections and poor working conditions.
claim that the flexibility that characterises
this type of work is what workers want, and (3) collective agreements being signed in
that existing regulations do not apply to them. Denmark, Italy, and Norway, show that
Surveys commissioned by platforms frame flexibility can be maintained while providing
their questions so as to create a false choice decent working conditions and access to trade
between flexibility and rights, making it seem union representation.
as if workers do not want adequate protection
and employment status recognition. While it is The misclassification of gig workers as self-
true that most platform workers highly value the employed, or ‘independent contractors’ leads
flexibility that this kind of work offers, it is not to workers suffering many injustices, not least
true that this flexibility must come at the cost of the inability to enjoy their rights to freedom of
decent working conditions: association.
The issues faced by platform workers are M Racial and gender bias in the algorithms and
interlinked, and some are specific to the rating systems
technological forms of control they experience. M Lack of consideration of migrant worker
They lack grievance, complaint, or appeal issues
mechanisms, advice and points of contact on
occupational health and safety or other working Occupational Safety and Health
conditions issues, including pay. They are M High number of accidents at work and lack of
isolated from the platform-employer and from training
other workers. Perhaps most importantly, they M No automatic provision of protective
lack the opportunity to organise and bargain equipment and health services
collectively – the gateway to better conditions. M Lack of access to sanitation and rest facilities
Below we use a labour and employment M No protections against violence/abuse at
rights framework to list the main issues raised work
repeatedly by workers themselves. While these M Musco-skeletal and psychological problems
may vary depending on the working time,
employment status and occupation of the Labour control methods
worker, most platform workers will experience M Pay and working time settings controlled by
some combination of the below: the platform through algorithms
M Non-negotiable pay, non-transparent pricing
M Automated behavioural incentives to
Labour, Social Protections and stimulate competition between workers
human rights M Arbitrary deactivations and withholding of
M Freedom of association not effective or jobs
prevented M Penalties for rejecting jobs
M Workers’ representation and collective M Obligatory guidelines on work wear or
bargaining mechanisms not accessible equipment
M Lack of sick pay, holiday pay, access to M No effective right to disconnect
maternity or paternity benefits
Working conditions and pay Issues for society
M Pay below minimum or living wages, and M Regulatory loopholes and tax advantages
unpredictable fluctuations in pay create an uneven playing field
M Unpaid working time (during search and M Non-payment of social security
waiting periods) contributions, income and local taxes
M Lack of guaranteed income/hours, penalties M Non-application of licensing or other safety
for disconnection regulation
M Lack of access to health insurance and social M Lobbying by platforms alters existing systems
protection (incl. health and unemployment) or slows down the application of existing
M Equipment costs, insurance costs and other legal and regulatory frameworks
costs falling on the worker M Location shifting leads to inability to apply
M Uncertainty over liability issues and regulation effectively
insurance coverage M Public safety issues at large (road safety,
M Lack of data portability and no ‘right to be background checks, etc.)
forgotten’ on rankings and ratings
M Constant surveillance and monitoring
contributing to stress
The paper was prepared by the International Transport Workers’ Federation (ITF) and the Trade Union
Advisory Committee to the OECD (TUAC) and has been endorsed by the International Trade Union
Confederation (ITUC), Education International (EI), the International Federation of Journalists (IFJ),
IndustriALL Global Union and Public Services International (PSI).