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Workers in the On-location

Platform Economy – Global


Unions’ Policy Demands

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.

Issues faced by on-location platform workers

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

Ten key policy demands and calls for immediate action


Taking into account the issues raised above diligence requirements and access to grievance
– amplified through numerous legal actions procedures and remedy.
against on-location platforms – we outline
ten key policy demands followed by calls for Labour rights protection – The ILO
immediate actions by platform businesses to Fundamental Principles and Rights at Work,
better working conditions. include freedom of association and collective
bargaining and occupational health and safety.
Correct the employment status – there should The ILO Centenary Declaration lays out a floor
be an initial presumption of employment, as of rights and protections, including the above,
exists in Spain’s ‘Riders’ Law’. The burden of for all workers, irrespective of their employment
proof of self-employment should sit with the relationship. In addition it specifies minimum
employer, in this case the platform company, living wages and maximum hours of work.
or a worker should seek it explicitly and by Gender equality is also essential, and these
choice. This is the gateway to improved working protections should be programmed into the
conditions and the enjoyment of labour rights. algorithms that manage workers. This means
Misclassification should be addressed to allow embedding gender and racial discrimination
for the enforcement of existing legislation and tests and fairness parameters into the criteria
clear rights and obligations – including employer and the data upon which the app is based.
duties. Workers have the right to be managed by Platform features should include in-app access
a person, or at least to a human point of contact. to trade unions and workers’ representatives,
grievance and appeal mechanisms, health and
Categorisation along sector lines – safety reporting mechanisms.
on-location labour platforms each fit into
existing sectorial boundaries (transport, Social dialogue and collective bargaining
services, etc.), existing and negotiated rules and – for now, policy makers have not explicitly
conditions should fully apply to them. engaged in social dialogue between trade
unions and on-location platform businesses.
No regulatory arbitrage – despite their unclear This would undoubtedly help addressing some
status and (at times) cross-border operations, blurry obligation and rights issues. Furthermore,
companies should adhere to international competition law should be relaxed to allow trade
human and labour rights, local laws, pay the unions to bargain for all workers regardless of
same taxes and make the same contributions to their status. Information and consultation rights
social protection systems as other firms in the of workers vis-à-vis platform businesses should
same sector. This must be reinforced by due be ensured by law.
Predictable and fair pay – there needs to safety reporting mechanisms, and collective
be enforcement that pay stays above or at bargaining mechanisms, and they should be
minimum or living wage levels in line with the certified for use by a labour inspectorate or a
country context. Pay has to be continuous for the regulatory agency. Unions must have access to
whole time a worker spends on an app – while the algorithms that manage the labour process
waiting, searching for jobs and executing them. to ensure they respect labour rights and do not
Pay cannot fluctuate or be terminated without distort wages/ payments in an unfair manner.
advance notice. Platform companies need to Platforms must ensure that their algorithms and
comply with such provisions. digital processes are tested, so that biases such
as those affecting women, migrant and disabled
Social protection – all workers, including workers and other groups are prevented.
on-location platform workers, should have Transparency guidelines would allow for more
the right and same access to sick pay, holiday accountability over automated decision-making
pay, maternity and paternity leave and pay, and management.
carers’ leave, pension contributions, disability
payments, death in service payments, pension Workers’ data rights – workers produce
contributions and levels of income that data that is then used to control their work
enable them to live free of poverty – including and optimize the functioning of the platform
unemployment benefits. Platforms should business, so they have the right to know, as
contribute to such systems. individuals and as a collective, what data is
collected, what it is used for, where it is stored
Labour inspectorates – in order to effectively or with which third parties it is shared, and how
regulate work in the platform economy the algorithms and software built on it works.
governments should create or reinforce labour Workers and their representatives should enjoy
inspectorates. These should have the ability free access to all the personal data collected
to classify worker status objectively, without on them during working time, including
recourse to the judicial system, make probes location data and any personal profile data, in
into working conditions as well as provide recognition that it is their data since they created
recommendations for further regulation (on e.g. it. Existing data protection rights should apply
the evolution of platform features). fully. Trade unions and workers’ representatives
should be given the right to information,
Certification of the apps and consultation and bargaining over collective data,
non-discriminatory software – apps their use and value. Since data produces value
that control labour should be checked for for the platforms, some of that value should
biases, for fair pay settings, the availability of accrue to the workers’ collective through their
grievance and appeal mechanisms, health and pay.

Immediate demands to platform businesses aimed at


improving working conditions:
Health and safety – businesses need to ensure Living wages - regardless of employment
health and safety protection for all workers with status, pay on platforms should be meeting or
adequate and appropriate provision of personal exceeding minimum or living wage levels of
protection equipment and sanitation facilities, the host country. The right to overtime and
training and specific protections against violence unsocial hours payments should be introduced.
and harassment in the workplace. Workers must If workers are genuinely self-employed, they
be able to report OSH issues. Best practice in should have access to negotiated cost recovery
the prevention of OSH issues in the workplace formulas.
includes empowering workers to report and
act upon problems. The best way of improving Human and humane control – workers in
health and safety is for employers to recognize the on-location platform economy have their
trade union and workers’ representation. work conditioned and controlled by algorithmic
systems and software. There should be a
guarantee that these systems are under human Fair contracts and transparent
control and are vetted regularly against possible management – Workers must be paid on time,
risks and adverse impacts on workers. Workers and should receive tips in full at the moment
must have access to a human point of contact they are received. Deactivations or suspensions
with who they can raise issues, including over of a worker’s account should follow a fair,
automated pay and problems with the app. transparent and clearly delineated process,
They should be able to request information on which also provides established grievance and
automatic decisions and attributions of tasks, complaints mechanisms. Contracts should
as well as regarding their data rights. Platform specify pay rates and pricing mechanisms, as
providers should allow and encourage regular well as rights to data and information over the
collective meetings between themselves use of personal data or attributable information.
and workers to discuss working conditions Any changes to working conditions should be
and adjust pay, protections and app design consulted and negotiated. Workers need to
accordingly. be informed about any changes in advance.
Workers’ ratings should be portable across
applications and for personal use. Platforms
could also consider providing training to their
workers.

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).

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