Gig Economy & Industrial Relations

Group 12 – BMD
BD20012 Appoorva Goenka |BD20065 Tanisha Gupta |BD20024 Devansh Tripathi
BD20028 G A Rohit Kumar | BD20043 Pranay Modi | BD20070 Varun Murthy
Introduction:
'Gig' is a phrase that was invented many decades ago but has recently gained traction. A 'gig
economy,' in this sense, refers to a temporary contractual job, short-term contract, or freelance
work that an individual can take on a project-by-project basis, with payment made after the role
is completed. The word 'gig economy' comes from the fact that of piece of work is identical to a
single 'gig.' A 'gig economy,' according to Merriam Webster, is "a commercial trend involving the
use of transient or freelance labour to perform jobs usually in the service sector."
On a global scale, the gig economy is not a new phenomenon. Hiring part-time jobs or
independent contractors has long been popular in Europe and the USA.  It ultimately contributes
to the creation of jobs and the growth of overall skills of the individuals.
One of the main causes for the gig economy's rise is the meteoric rise of digital technology. Jobs
or independent contractors are rewarded for each gig or job they do, and this concept underpins
all internet applications involving this contingent workforce. Several businesses pay their
partners, whether they be drivers, distribution executives, or other forms of staff, depending on
the amount of deliveries and/or clients they service in a day or month, or according to the
systems in place by these companies.

Factors leading to a Gig Economy:

Before delving into the implications of the gig economy, it is necessary to consider the
circumstances that contributed to its inception. Otherwise, there is a danger of seeing the gig
economy as just taking a certain form, influenced by technical forces, reducing the agency of
other main players. Preconditions, on the other hand, form all aspects of labour, facilitating and
encouraging the development of this type of work.
According to Woodcock and Graham (2019), the gig economy is shaped by nine preconditions
that include facets of technology, culture, politics, and their synthesis.
The first is a technical requirement: "platform architecture." The availability of underlying
technologies, such as 4G networking, cloud storage, and GPS networks, is a key factor in the
exponential growth of platforms as a model.
The “internet legibility of work” is the second precondition, which applies to whether the work
can be processed via a digital medium. Delivery work, for example, has a high degree of digital
legibility since it entails a distinct task that can be mapped onto a given procedure. However,
certain forms of less well-defined work can be difficult to arrange using a forum.
“Mass networking and inexpensive technology” is the third precondition, which incorporates
technical and social elements. Both staff and platform users profit from the proliferation of low-
cost smartphones with reliable internet access. Services who ignore this can be inefficient and
struggle to satisfy the needs of all parties. Transportation platforms excel at providing service at
any time—and frequently when other options are unavailable—and this is aided by infrastructure
that is affordable enough for widespread adoption.
The fourth element is a social precondition like "market behaviour and desires," which is linked
to the first. This platform will only thrive if there is an established demand for these services (or
one that can be created in a variety of ways) and users are willing to use platforms to use them.
Domestic job platforms, for example, necessitate a demand for domestic jobs, which has clients
who are used to seeing workers in their households. There are current strategies for hiring and
handling domestic workers in countries where these activities are more prevalent, such as South
Africa. This example applies to the fifth social precondition, which is "gendered and racialized job
relationships." Domestic labour has long been stigmatised as a female-dominated occupation, as
well as racialized by minorities and migrant workers. Similarly, driving and distribution work has
traditionally been called male work in the UK and other global north nations, and has been
racialized as well. In both cases, this means that many workers are not protected by successful
job legislation due to their irregular status, and that they are exposed to greater racial
marginalisation. Many of these dynamics can be applied to platform function as well.
The “desire for flexibility for/from workers,” which is a synthesis of social and political economy,
is the sixth precondition. There are two parallel pushes towards platform-based job flexibility.
The first is platforms that are searching for an extremely mobile staff that can be recruited on
short notice and needs no effort to continue operating. For instance, delivery drivers who are
only paying to make deliveries, especially during peak hours, do not need to be paid when they
are not needed. This enables platforms to scale quickly while decreasing staffing costs—
particularly through the use of self-employment status. However, relying primarily on the need
for stability overlooks the need for more inclusive workplace conditions, which is a frequently
debated advantage among staff. Many employers prefer greater flexibility than conventional
occupations have, such as the ability to arrange work with other commitments or to work more
or in addition to other jobs. Although there are many reasons for this, including the proliferation
of low-paying, low-quality employment, employees' demand for flexibility is an important aspect
to remember.
The seventh and eighth preconditions are also political economy-related, concerning “state
regulation” and “worker power,” respectively. All of these aspects have an effect on the world in
which the gig economy and networks flourish. The first, state law, establishes the legal
framework that restricts — or even encourages — the expansion of this type of work. Current
law, on the other hand, could not have been structured to consider the unique nature of this
type of work, allowing platforms to evade or prevent enforcement.
The entry of platforms, for example, has been stymied or blocked in countries where taxi drivers
have large unions. In other cases, labour-friendly reform has been introduced as a result of
popular demand. As a result, the balance between labour control and business lobbyists creates a
crucial terrain for the establishment and development of networks.
The ninth and final precondition is a blend of political economy and technology, leading to
“globalisation and outsourcing” dynamics. In certain ways, this is more applicable to a certain
kind of gig job. Gig jobs can be split into two groups. First, there's "geographically tethered jobs,"
which necessitates employees' presence in a certain place, such as cleaning a house or
distributing food. The second is "cloudwork," which refers to work that can be done on a
computer from afar.
Clearly, the latter entails outsourcing dynamics that depend on rapidly globalised digital logistics
networks. These remote gig jobs, for example, complete most of the Internet's behind-the-
scenes function, such as moderating video material in the Philippines. However, since most of
this work is done by migrant workers who cross borders to become outsourced workers inside
new national borders, the former often includes these procedures.
These preconditions do not decide the shape of the gig economy, but when seen together, they
have a significant impact on the future outcomes of the gig economy in various countries. It's
critical to highlight these various preconditions, particularly those that aren't specifically linked to
technology, in order to demonstrate how there are "currently countless gig economies all over
the world that are encountered in radically different ways.".
Despite this, as the rest of the chapter would illustrate, there are increasingly similar threads,
trends, and results emerging—which does not rule out the prospect of reshaping this form of
work in the foreseeable future.

Implications of Gig Economy:

People who work in the gig economy can enjoy many advantages, including the freedom to select
their own hours, workdays, holidays, and chosen employers. However, main drawbacks to
working in the gig economy can include workplace insecurity, volatile wage schedules,
unpredictable workload, and a lack of social insurance and/or regulatory rights comparable to
those of a permanent employee. Since the demand may not necessarily be favourable to a single
sector, freelancers must be willing to work in a variety of capacities.
Since there is no permanent jobs, there is no means of telling what the wage rate will be or how
long it will last. As a result, individuals who want open work environments must continually
upgrade their knowledge base and skillset to stay in company. The most notable drawback of the
gig economy is that, unlike conventional jobs, gig economy employees tend to be ineligible for
government services such as pensions, dental benefits, employee provident fund, bonus, or
gratuity.
These gig employees also lack any employment-related protections, with the exception of a few
incidents containing contract violations. Since an individual contractor is not a full-time employee
of an establishment, he or she is not entitled to any social security or legislative compensation.
Since there are currently no codified Indian laws in this region, people employed in the gig
economy are classified as individual employees or independent contractors depending on the
extent of their engagement.
Impact of Gig Economy:
Not only is the gig economy reshaping jobs, but it's still reshaping culture as a whole. The “desire
for independence for/from workers,” as well as “consumer perceptions and preferences,” were
two of the main preconditions mentioned earlier. Jobs, platforms, and users are also looking for
more variety from these types of network offerings, which should be merged to make sense of
the effect of the contract economy on culture more generally. Workers are looking for
alternatives to operate that are more agile and adaptable; platforms are breaking away from past
workplace rules, and users are constantly expecting on-demand services.
Due to the customer-facing nature of many of the high-profile platforms these are changing
consumption patterns. Uber has widely increased the provision of private-hire drivers, with a
surplus of drivers, meaning consumers often only have to wait a short time for a pickup. The
lower prices have meant increased take-up of these services, transforming transport practises
across many cities. Food-delivery platforms are also changing consumption patterns. They have
also shifted the relationship with restaurants, through the establishment of so-called “dark
kitchens” in which the food is no longer made in a restaurant, but in special purpose-built
delivery units, often hosted in shipping containers.
This liberation from conventional modes of employment has the potential to exacerbate future
social issues. In certain nations, social insurance is linked to the "normal work contract" in
different ways, whether to cover sickness, unemployment, or maternity/paternity. People who
work in the contract economy, as well as those who already focus on externalising the costs of
overwork in different ways, have benefited from the short-term stability of the freelance
economy. However, since the gig economy lacks institutional protections, the social risks of their
employment would be absorbed mostly by private individuals.

International Gig Economy:

The gig economy is still a work in progress on a global scale. IoT connectivity, shifting
demographics, and changing employer needs are reshaping the global job landscape into a
freelance-driven world with both advantages and challenges for employers and contractors.
IoT and Connected Technologies
Worker mobility and technology that allows people to collaborate from remote locations are two
main factors driving the gig economy's development. Freelancing allows businesses more
versatility when it comes to talent management as the digital economy grows. Simultaneously, it
allows remote workers to communicate at any time and from virtually any place.
Although some younger tech firms have embraced the idea of a leaner, more decentralised
workforce, others are still built on a more conventional job model. However, the financial
advantages of lower overhead are a potent elixir for businesses of all sizes.
Indeed, one of the distinguishing features of the so-called fourth industrial revolution is that it is
not producing large volumes of new jobs. Technology is assisting in the development of the
economy, but it is not inherently rising total employment.
Employers are gradually considering recruiting full-time workers as a last resort, not just because
there are less options for full-time job seekers. Full-time workers are costly, and they often
necessitate rigidly organised, physically demanding work conditions that are inefficient and costly
to sustain.
The Future of Work
Around the world, the Gig Economy reflects a radical change in jobs. The bottom line is guiding
this new world order for employers. Workers, on the other hand, are choosing self-employment
as a requirement as well as an option.
Workers are realising that they need to work differently because our economy no longer provides
job protection. One can be laid off, let go, downsized, right-sized, off-shored, outsourced, or
contracted out at any moment, even though he/she is a full-time employee.
Staff at all ability levels face a high degree of ambiguity. Those with the fewest skills, however,
are the most prone. When one thinks of low-skilled jobs, one of the reasons they're getting into
things like driving for rideshare companies is to have more leverage of how much money they
earn and when they work.
The gig economy's development is being influenced by changing cultural norms. Jobs that don't
entail long commutes or sitting at a desk all day, for example, appeal to Millennials and Gen Xers.
There is fierce competition for highly qualified independent jobs, so this is ultimately good news
for some employers.
The New Normal
Freelance work has long been the standard in many developing countries across the globe. To
make ends meet, workers all over the world have patched together everything they may.
Although the gig economy has taken off in the United States, it is still in its infancy in Europe. It's
facing a lot of criticism because it challenges Europe's security jobs laws and regulations. The
regulatory environment has slowed its development. Since our economy lacks a structure for job
stability, the gig economy presents a greater danger to them than it does to us.
Employees in the EU and other countries that have national services like health insurance, on the
other hand, are less dependent on their employers. In several cases, transitioning from full-time
to independent jobs is better for the workforce because they can gain those advantages far more
readily on their own.
Furthermore, gig employees in the United States are subject to a special self-employment tax
that contractors in many other countries are not. She claims that working for yourself has tax
benefits in the United Kingdom, for example.
Nonetheless, as the global workplace develops, its implications are felt across the political,
economic, and social spectrum. The truth is that job security is lower than it has ever been. Baby
boomers grew up in a time when, at least in the more developed countries, they had some
degree of work market assurance. The sense of safety and security, however, has vanished for
millennials and Generations X, Y, and Z.
Lack of job security cuts through demographic and national lines, redefining the working climate.
Companies aren't willing to provide it, and we as a nation aren't willing to mandate it. For that
reason, the gig economy appears to be appealing, as diversification reduces risk.

Gig Economy and India:

With 15 million qualified workers, India accounts for approximately 40% of all freelance
employment available worldwide, boosting the ever-increasing market for contract-based jobs or
the freelance industry. Freelancers are drawn to the gig economy because it helps them to fulfil
their dream while still supplying them with the versatility and freedom they crave. A worker or
independent contractor may choose his or her own work hours and, in some cases, also the
process by which he or she performs the work. Staff or independent contractors in this category
may work from home, especially if the project involves arts and design, information technology,
or creative writing. Since there are no restrictions on proximity to the office, both the boss and
the employee or independent contractor have the right to search at more viable alternatives.
Companies benefit from the gig economy because they can accommodate temporary workforce
based on customer needs or business needs, saving administrative and compliance costs that
would otherwise be incurred if they hired full-time or regular employees, especially in cases
where business models do not need the engagement of permanent workers. Companies and
start-ups will not be able to hire qualified practitioners on a full-time basis. In such cases,
corporations can opt to enter contracts with practitioners for a fixed period. It is a symbiotic
partnership in which all sides have equal opportunity to search out solutions that suit their
needs. During this time, both sides focus their efforts on establishing alliances and developing
relationships with their respective demographics.
India's gig economy is forecast to expand at a compound annual growth rate of 17% to $455
billion by 2024, with the potential to grow at least twice as quickly as pre-estimates for the post-
COVID-10 pandemic era. With the pandemic-induced remote job regime eradicating long-held
concerns about the productivity and dependability of a gig workforce, more and more businesses
are comfortable recruiting this modern generation of talented workers.
Not only in India, but around the world, the pandemic has altered the way industries are run.
Many businesses are realising the benefits of forced remote work culture on strained cash flow,
remodelling their activities as per business continuity strategies, and opting to employ freelance
talent in the current industry scenario due to the forced remote work culture. Though employers,
employees, and the government are gradually accepting the model, this sector still has a lot of
capacity gaps. For such individuals to remain business competitive and business ready, they
would need to continually upskill and reskill.
The labour market has been disrupted because of rapid digitization. Here, technology plays a
critical role in galvanising the reach of independent work across regional borders. The new job
motto, which has redefined the essence of labour, is mission freedom and versatility of work
hours. In the current situation, the pandemic is expected to cost India about 135 million workers.
Many of them should be directed toward developing skill sets that will allow them to take
advantage of freelance job opportunities and participate in the growing flex or gig economy.
A gig worker has the flexibility to work with many employers at the same time while also
maintaining his independence. It is a move from a conventional 9-5 role to on-demand jobs, with
the worker having the option to choose his own remuneration. It allows employees the flexibility
to balance work and family obligations, as well as the option to select the tasks that better serve
their needs. However, in India, the gig economy is still in its infancy and is beset by a plethora of
problems. Currently, India has about 15 million freelance staff working on projects in IT, HR, and
architecture. In the United States, there are about 53 million self-employed individuals. In India,
the new COVID 19 situation would drive more conservative jobs into the gig economy.
India's population is rising at a rate of nearly four million every year, which would have a huge
effect on the gig economy in the immediate future. Also in India, the size of companies is
declining, resulting in a significant number of start-ups specialised in contracting out non-core
operations. There are several issues in this industry that must be discussed. This group of workers
has little workplace opportunities, such as minimum pay, dental care, sick time, or even
retirement insurance. Furthermore, reimbursement is promised only after the job is finished,
causing a feeling of financial uncertainty. To secure the gig economy's workforce, the
government needs to issue more effective rules. In addition, there is currently no process in place
to resolve the question of conflict resolution between the parties involved. That may also mean
that countries would have to band together to create a forum that would allow them to apply
their labour rights to part-time jobs in their own region. Companies who recruit temporary
employees should be kept liable for adding to their health and social commitments in addition to
their tax obligations.

ILO Report
How to help the gig economy work better for gig workers?
In India, the gig economy has gotten a lot of publicity in the last few years. But how can these gig
economy workers have their voices heard and bargain for fair wages and working conditions?
The introduction of newer technology has brought profound changes to the way they operate
and the types of locations where they do that work in the last few years. Standard employment
contracts and employee involvement have changed significantly, resulting in work that is more
sporadic and, in many cases, less secure.

This is due in part to long-term patterns in non-traditional work structures, as well as the growth
of the network economy, or gig economy, which has become a big game-changer.

Companies in the gig economy are on the verge of displacing those in the conventional economy.
The idea has caught on and is a huge influence in how sectors are organised and how people
perceive jobs, whether you're a driver, an artist, a freelance videographer, or something in
between. Although one-time jobs are nothing new, the increased use of technology has aided in
the widespread proliferation of "gig" employment.
In recent years, the gig economy has risen rapidly in size and popularity, and its effect on labour
rights has been largely ignored. It's also difficult to determine the exact number of employees
because companies are sometimes unable to share information. It's difficult to make an
estimation since employees can be registered with several companies in the same month.
Accessible figures, however, vary from 0.7 to 34 percent. According to the Bureau of Labor
Statistics, there are 55 million "gig jobs" in the United States. This represents approximately 34%
of the US population, with a forecast rise to 43% by 2020.
In the gig economy, being paid for one's job continues to be a major issue. According to a recent
survey conducted by the Freelancers Union in New York, 50% of freelancers have problems
getting paid for their jobs. Late payment was the most common issue, but a third of those polled
had instances where they were not paid at all for work they had already done.

There is also an expanding body of research that distinguishes between ‘crowd work' and ‘work
on-demand through apps.' Crowd workers, for example, work remotely via networks that
connect a large number of customers, organisations, and companies, often from different
countries. Since crowd work is done online, there are always an infinite number of staff and
clients.
Work-on-demand via apps, on the other hand, is platform-enabled but location-based and
geographically restricted work. Crowd workers and place-based platform workers use different
tactics because of these distinctions.

Is gig-economy preferred by workers to increase their income?

Informal interviews with people who work in the gig economy have shown a variety of
viewpoints on the importance of their new gigs. Some claim it gets them out of the house, gives
them something to do, or allows them to meet new people.
This was a more popular response among retirees. Others said that it assisted them in paying for
a special night out or purchasing an extra bag of groceries. None of the people who took part in
these informal conversations said it paid a living wage, so they had to work several jobs to make
ends meet.

The growth of the gig economy poses a danger to society, particularly if it becomes the only
economy, displacing whole classes of employees and their full-time employment with workers
who are not covered by labour laws and are not qualified for wages or social security.
Consumers outsource services to gig employees because they lack the time or because it is less
expensive than hiring a firm. It's tough for gig staff to learn new skills because they're still looking
for their next job assignment.
Individual employees must participate in life-long learning to optimise their job prospects
because the types of skills required in today's labour market are rapidly evolving.
Companies, on the other hand, understand that they must develop reskilling strategies for their
workers that include a life-long learning strategy. This can be a useful strategy for businesses
looking to recruit and retain top talent, as well as to be seen as a successful employer that invests
in their employees and supports socially responsible business practises.
Many businesses are also supporting educators in designing skills-based curriculum and
discovering potential job opportunities in high schools, where talent can be recognised and
nurtured early. This seems to be moving some people's perspectives on jobs and employment
away from conventional liberal arts education that can prepare them for a college diploma and
toward more job-related skills.
This new approach aims to provide young people joining the labour force with vocational skills
and train them for better job opportunities. Social skills and critical thinking, in addition to
technological skills, would be especially essential for prospective job seekers. Creativity,
empathy, teamwork, imagination, problem-solving, and strategic thinking are all attributes that
could become more relevant in the future.
The problem is that these types of soft skills training are already offered in a typical liberal arts
education, so this aspect should not be omitted, but rather augmented by training in in-demand
hard skills.

The ILO proposes a skills anticipation or skills forecasting approach to resolve today's persistent
disparity between the skills required in the labour market and those provided by the workforce.
This helps to close the gap between demand and supply for skills.
This strategy allows training providers, young people, policymakers, employers, and staff to make
better educational and training decisions, and leads to increased use of skills and human capital
growth through institutional processes and knowledge tools.
Since the gig economy presents specific challenges, one critical topic that is seldom discussed
from the perspective of gig workers is the defence of their rights under labour law. Gig
employees are sometimes categorised as independent contractors, which means they are unable
to join unions to defend their interests or engage in collective bargaining under some rules.
Gig employees often work alone, in isolation, across large geographic areas, often in direct
competition with one another. Gig work is often temporary or task-based, and online labour
networks have high employee turnover rates.
One thing is certain: the gig economy will continue to play an important role in the future of
work. For an increasing number of workers, the gig economy offers a valuable source of income
and employment. It allows employees who would otherwise be unable to function due to a
disability, caring duties, or illness to participate.
However, there are still questions about working conditions and the gig economy's ability to
provide stable and reasonably paying jobs for those who depend on it. To help both staff and
platforms live up to expectations, smart and successful policies are needed.
Survey
To gain a better understanding of the gig economy we conducted interviews with Uber/Ola/cab
drivers to understand how the Gig Economy impacts their life and their preferences about an
alternate career that may be potentially more stable.
The survey questions are as follows:
A. What are the working hours generally?
1. Do you plan to move to more stable jobs in the future?
2. What is the biggest advantage of a job in the cab service?
3. Did Covid impact your earnings in a negative manner?
4. Do you also have alternative sources of income?
On total, we interviewed 10 cab drivers in Kolkata, 5 of which were Uber drivers, 3 Ola drivers
and 2 Yellow taxi drivers. The results showed that Covid has directly impacted their income. They
talked about more than 50% decrease in their earnings as the number of cab bookings went very
low after employees became working from home along with the students. This also reflects how
Gig Economy has suffered a massive hit due to the ongoing coronavirus pandemic. . All the 10
cab drivers reported a decrease in income which also shows the need for alternate sources of
income.
Since 3 of them were students , they said that they plan to move into higher studies once they
are able to repay their family debt. The others were happy with the work-life as the job provided
flexibility in working hours with a decent amount of income. 6/10 said that they take a 2 month
break every year since they have to go back to their hometowns to meet their families.
The advantages stated were flexibility in work hours, balanced workload and ease of movement.
With regard to the number of sources of income, the students were the sole breadwinners of the
family, but rest of the others had their family into agriculture and related businesses back in their
illage. However, it fails to provide a stable source of income as well.
6 people worked 10-12 hours a day, while 2 worked for `12+ hours a day and 2 others on the
other hand worked 7-9 hours a day. Since the earnings fluctuate a lot on a daily basis, working
hours are also subject to the daily earnings, they sometimes work for longer hours to ensure that
their monthly targets are met.All of them however, agreed to having a monthly target earning,so
as to support their basic family needs. Despite these challanges due to covid, the majority did not
want to more stable jobs since it provides flexibility and autonomy along with a good source of
Income.

References
https://www.dnaindia.com/india/report-gig-economy-is-the-way-forward-and-it-needs-strong-
support-in-india-2682444
https://www.wikijob.co.uk/content/features/useful-resources/survey-how-do-graduates-feel-
about-gig-economy
https://economictimes.indiatimes.com/tech/technology/economic-survey-2020-21-indias-gig-
economy-now-among-largest-in-the-world/articleshow/80586505.cms
https://www.nber.org/system/files/chapters/c13887/c13887.pdf