"THE IMPACT OF ALL INDIA GIG WORKERS UNION ON THE

LABOR RIGHTS AND WORKING CONDITIONS OF GIG WORKERS

IN INDIA"
Dr.Mohan Mishra

ABSTRACT

This research study delves into the transformative role of the All-India Gig Workers Union
(AIGWU) in reshaping the labour landscape within India's burgeoning gig economy. With
the exponential growth of gig work in recent years, gig workers have faced a myriad of
challenges, including inadequate pay, lack of benefits, job insecurity, and a dearth of
collective bargaining power. The AIGWU, as a representative body of gig workers, has
emerged as a pivotal force advocating for their rights and welfare.

This study employs a mixed-methods approach, combining quantitative data analysis and
qualitative insights from gig workers and union representatives. By examining the strategies,
initiatives, and impact of the AIGWU, this research seeks to assess how the union has
influenced labor rights and working conditions within the gig economy. It explores the
union's efforts in negotiating for fair compensation, benefits, job security, and the
enhancement of overall working conditions.

Furthermore, the study delves into the legal and regulatory framework surrounding gig work
in India, evaluating the extent to which the AIGWU's endeavors align with existing labor
laws and the challenges it encounters in advocating for gig workers' rights within this
evolving context. Insights gleaned from this research shed light on the effectiveness of labor
unions in addressing the unique challenges faced by gig workers and contribute to the broader
discourse on labor rights in the gig economy.

1|Page
 TABLE OF CONTENTS

ABSTRACT.........................................................................................................1

1. INTRODUCTION..........................................................................................3

1.1 DEFINITION OF GIG WORKERS............................................................3

1.2 GROWTH OF GIG ECONOMY IN INDIA...............................................4

2. EMERGENCE OF GIG WORKERS UNIONS.............................................5

2.1 FORMATION OF GIG WORKERS UNIONS...........................................5

3. CHALLENGES AND OBSTACLES............................................................7

3.1 LEGAL AND REGULATORY HURDLES...............................................7

4. CONCLUSION............................................................................................10

BIBLIOGRAPHY...............................................................................................12

2|Page
 1. INTRODUCTION
1.1 DEFINITION OF GIG WORKERS
Gig workers are a group of laborers facing significant vulnerability and government
shortcomings. This situation arises from a collaboration between exploitative digital
platforms and a business-friendly government, resulting in gig workers being deprived of the
protections they should receive under existing welfare laws. The recent labor codes have only
exacerbated their exclusion.

Over recent years, the Indian government has increasingly promoted job insecurity, embraced
fixed-term employment, encouraged widespread contractualization, and treated labor as a
commodity. Concurrently, gig workers, a substantial segment of the workforce, have
witnessed a systematic erosion of their rights. Strikingly, the NITI Aayog estimated earlier
this year that there were 7.7 million gig workers in 2020-21, with this number expected to
rise to 23.4 million by 2029-2030. 1 These workers, engaged by platforms such as Uber,
Swiggy, and UrbanClap, are being denied the legal safeguards granted by labour laws.

The reality is that “Gig Workers” face a lot of problems, such as inconsistent pay, no social
security, unpaid overtime, and insufficient safety measures. The drivers of rideshares like Ola
and Uber were the subject of a recent study by the “International Transport Worker's
Federation” (ITF) and the “Indian Federation of App-based Transport Workers” (IFAT). A
shocking 95.3% of these employees did not have health, accident, or emergency medical
coverage, according to the report.2 Furthermore, many “Gig Workers” experience a range of
occupational health issues. Their capacity to organize a union and take part in “collective
bargaining” is hindered by the uncertainty of their employment status. Even though the
“Supreme Court” ruled that not paying minimum wages is bonded labor, gig workers are still
not guaranteed these basic wage protections.

1
NITI Aayog. (2022). India’s Booming Gig and Platform Economy: Perspectives and Recommendations on the Future of Work. June,
2022 https://www.niti.gov.in/sites/default/files/2022-06/25th_June_Final_Report_27062022.pdf
2
https://cis-india.org/raw/files/ifat-itf-protecting-workers-in-digital-platform-economy-ola-uber-occupational-health-safety-report/

3|Page
1.2 GROWTH OF GIG ECONOMY IN INDIA
The gig economy has witnessed substantial growth in recent years within India. As per a
2022 report from the Boston Consulting Group, it is anticipated that the gig workforce in
India will reach approximately 90 million by 2030. 3 This expansion can be attributed to
several key factors:

1. Technological advancements have made it more convenient for individuals to connect with
clients and engage in online work.

2. There is a growing demand for flexible work arrangements, allowing individuals to

effectively manage their work-life balance.

3. The increasing number of young people in India is more inclined towards participating in
the gig economy.

The gig economy's impact in India is multifaceted. On the positive side, it offers individuals
increased flexibility and autonomy in their work, potentially creating new employment
opportunities and contributing to economic growth4.

Conversely, there are negative aspects to consider. The gig economy can lead to lower wages,
reduced benefits, and decreased job security for workers. Additionally, gig workers may face
challenges in accessing social security and government benefits5.

The Indian government is currently navigating the path to regulating the gig economy
effectively.6 In 2021, a new law was introduced that mandates the registration of all gig
workers with the government and establishes minimum wage standards and working
conditions for them.

Although it is too early to definitively determine the long-term impact of the gig economy on
India, it is evident that this employment trend is here to stay and will exert a substantial
influence on the Indian economy.7

3
Josh, Jagran. “The Gig Economy in India.” Jagranjosh.com, 8 June 2023, www.jagranjosh.com/general-knowledge/gig-
economy-in-india-1686216889-1
4
Jagran JoshUpdated:Jun. “The Gig Economy in India.” Jagranjosh.Com, Jagranjosh.com, 8 June 2023,
www.jagranjosh.com/general-knowledge/gig-economy-in-india-1686216889-1.
5
ibid
6
ibid
7
ibid

4|Page
 2. EMERGENCE OF GIG WORKERS UNIONS
2.1 FORMATION OF GIG WORKERS UNIONS
The gig economy, marked by its short-term and flexible work arrangements enabled by
digital platforms, has witnessed substantial growth in recent times 8. This research paper
examines the emergence of gig worker unions as a noteworthy response to the distinct
difficulties encountered by individuals within this sector. The paper investigates the driving
forces motivating gig workers to seek unionization, the consequences of such unions on
working conditions, and the legal and organizational obstacles they confront9.

Gig workers encompass a diverse spectrum of individuals, each with unique motivations
driving them towards the formation of unions. These motivations are intricately linked to the
multifaceted challenges that gig workers encounter daily within the dynamic landscape of
modern employment.10 The decision to unionize is often rooted in the pressing issues they
confront in their work lives, which include insufficient compensation, the absence of
employment benefits, heightened job insecurity, and a notable lack of collective bargaining
power.11 An exploration of the dynamics surrounding gig worker unions reveals the profound
connection between these motivations and the distinct circumstances faced by workers across
various sectors within the gig economy.

1. Inadequate Pay: Foremost among the issues compelling gig workers to seek collective
representation is the persistent concern surrounding inadequate pay. Many gig workers find
themselves grappling with earnings that fall short of meeting their financial expectations or
fail to provide a sustainable income. 12 This financial instability and uncertainty can be
particularly distressing, prompting workers to explore the potential benefits of unionization as
a means to advocate for fair and improved compensation.

2. Lack of Benefits: Another pivotal factor motivating gig workers to embrace unionization is
the conspicuous absence of traditional employment benefits. The realm of gig work is
frequently devoid of essential benefits such as health insurance, retirement plans, paid leave,
and worker's compensation.13 Consequently, gig workers often find themselves exposed to

8
Drishti IAS. “Rise of the Gig Economy in India.” Drishti IAS, 13 Jan. 2023,
www.drishtiias.com/daily-updates/daily-news-editorials/rise-of-the-gig-economy-in-india.
9
ibid
10
Hogan, Ginny. “Are Unionized Gig Workers the Future of Work?” Forbes, Forbes Magazine, 2 June 2023,
www.forbes.com/sites/ginnyhogan/2023/06/01/are-unionized-gig-workers-the-future-of-work/?sh=74ec76874ac1.
11
ibid
12
Interview notes, interview with Kelly Ross, 2 December 2016
13
Interview notes, interview with Kelly Ross, 2 December 2016

5|Page
significant financial risks and hardships during times of illness or other unforeseen
emergencies. The prospect of unions negotiating for the provision of these benefits holds
considerable appeal for gig workers.

3. Job Insecurity: Gig workers frequently grapple with the pervasive issue of job insecurity,
an inevitable consequence of the temporary and contingent nature of their employment. The
absence of long-term job stability can give rise to anxiety and instability in their personal
lives. Unions serve as a platform through which these concerns can be collectively addressed,
advocating for greater job security and safeguards against arbitrary terminations.14

4. Collective Bargaining Power: The gig economy often operates outside the traditional
framework of collective bargaining available to employees in more conventional workplaces.
Gig workers are typically classified as independent contractors, a classification that restricts
their ability to negotiate the terms and conditions of their work collectively. 15 The
establishment of unions provides them with a structured platform through which they can
collectively bargain with gig platforms, pursuing improved working conditions, fair pay rates,
and effective dispute resolution mechanisms.16

Case Studies: To illustrate the motivations of gig workers further, it is insightful to examine
case studies from diverse sectors within the gig economy. These case studies shed light on the
specific concerns that propel gig workers towards the pursuit of collective representation:

Ride-Sharing: Drivers engaged in ride-sharing services, for instance, grapple with issues such
as fluctuating pay rates, the financial burden of vehicle maintenance, and a pervasive lack of
job security. These concerns have culminated in the establishment of driver unions, which
actively negotiate for fare increases, transparent payment structures, and enhanced working
conditions.

Food Delivery: Gig workers in the food delivery sector often encounter challenges related to
subpar wages, the absence of safety measures, and heightened risk exposure due to road
accidents.17 Unions operating within this sphere are dedicated to securing not only improved
compensation but also safety protocols, including comprehensive insurance coverage for
accidents.

14
Interview notes, interview with Mario Grasso, 7 February 2017
15
ibid
16
Interview notes, interview with Mario Grasso, 7 February 2017
17
Interview notes, interview with Mario Grasso, 7 February 2017

6|Page
Freelance Workers: Freelance workers encompassing professions such as writers, graphic
designers, and creative industry freelancers frequently contend with issues such as delayed
payments, non-payment for completed work, and limited access to professional development
opportunities. Unions within this realm are steadfast in their efforts to establish standardized
contract terms, equitable payment schedules, and increased access to resources aimed at
fostering fair and ethical freelance practices.18

In summary, gig workers find their motivations to unionize deeply intertwined with the
unique challenges they encounter daily in their respective sectors. These unions emerge as a
collective voice, advocating for equitable working conditions, fair compensation, access to
vital benefits, and a heightened sense of security within the ever-evolving landscape of
contemporary employment.

3. CHALLENGES AND OBSTACLES

3.1 LEGAL AND REGULATORY HURDLES
Businesses and the government frequently operate under the false presumption that gig
workers' labor is exempt from current labor laws. Many times, gig workers are referred to as
"partners" or "agents", drawing attention away from the fact that they are legitimate
employees. By making this purposeful distinction, platforms are able to avoid their
obligations under labor laws and avoid their duties as employers.
A resounding affirmative response is warranted to address the concerns of gig workers and
ensure their rights are safeguarded within the framework of existing labor laws.

Determining the presence of an employer-employee relationship hinges on a multitude of

factors, as outlined by the “Supreme Court” in various cases. While the specific tests may
vary from one jurisdiction to another, some common criteria are applied in India to ascertain
the existence of an employment relationship. These criteria include:

1. Control Over Work: Does the employer exert control over the tasks and activities of the
worker? The extent to which the employer manages and directs the work performed by the
employee is a crucial factor.

2. Supervision: Is the worker subject to supervision by the employer? Regular monitoring and
oversight by the employer can indicate an employment relationship.

18
ibid

7|Page
3. Disciplinary Authority: Is it possible for the employer to discipline the employee? Power
to impose sanctions or penalties for misconduct is often indicative of an employment
relationship.

4. Manner of Work: Does the employer have influence over how the job is done as well as
the work itself? This level of control goes beyond the mere assignment of tasks.

5. Remuneration: Does the employer provide compensation to the worker? The payment of
wages or remuneration is a fundamental characteristic of an employment relationship.

It's important to note that no single factor is determinative on its own, and the classification
of the relationship depends on a comprehensive assessment of all relevant factors.

For instance, in a case involving agarias employed by salt companies, a dispute arose over
whether these agarias were workers or independent contractors. 19 The salt companies argued
that agarias couldn't be classified as workers since they were paid on a piece-rate basis and
weren't obligated to work fixed hours or days. The "Supreme Court," however, disregarded
this claim, pointing out that an individual may still be regarded as a worker even if their pay
was determined by the task rather than by a daily or hourly rate. Regardless of the payment
arrangement, the Court emphasized that the completion of the legislative criteria should serve
as the basis for determining a worker's status.

Similarly, in the case of bidi rollers, the Supreme Court held that workers could be classified
as employees of the employer, even if the operation was simple and did not require
continuous supervision. The ability of the employer to exercise control and supervision, albeit
at the end of the day, was sufficient to establish an employment relationship.20

In light of recent developments, the UK Supreme Court's decision regarding Uber drivers is
particularly relevant. The Court concluded that Uber drivers should be classified as workers
within the ambit of labor legislation.21 This determination was based on a set of criteria,
including the hierarchical relationship between drivers and Uber:

- The service contract was unilaterally prepared by the company, providing little room for
driver influence.

- The company had sole discretion over remuneration and service fees, without driver input.

19
Dharangadhara Chemical Works Ltd. v. State of Saurashtra AIR 1957 SC 264
20
Birdhichand Sharma v. The First Civil Judge, Nagpur (1961) II LLJ 86 SC
21
Silver Jubilee Tailoring House and Ors. V. Chief Inspector of Shops and Establishments, AIR 1974 SC 37

8|Page
- Drivers had no choice in accepting rides and were unaware of the destination until the
passenger was seated.

- Passenger ratings could lead to penalties or driver termination, signifying control and
subordination.

- Drivers were often treated as interchangeable, with limited opportunities for career
advancement.

The UK Supreme Court made a significant point when it emphasized the need of interpreting
labor legislation with purpose. It made clear that the goal of labor laws is to protect workers
who are weaker than others, especially those who hold dependent and subordinate positions. 22
Therefore, employees who find themselves in similar circumstances both materially and
economically should be covered by the legislation.
Similar to this, gig workers in the Indian gig economy are subject to the platforms' control
and subordination. They have little power over employment agreements, pay, fines, and other
important aspects of their jobs. “The Indian Federation of App-based Transport Workers”
(IFAT) highlights the app-based companies’ role in worker exploitation in the report. These
companies use opaque algorithmic systems to determine work “allocation, compensation,
penalties, and grievance resolution”, all of which have an impact on occupational health and
safety. Importantly, workers are unable to exercise their rights because they are unaware of
the rationale and design of these structures.
Gig workers and corporations are clearly in an employer-employee relationship because of
the control and oversight that firms wield over them. 23 Consequently, affirming the existence
of such a jural relationship warrants extending the full spectrum of protections and
entitlements available under existing labor legislation to these workers. This perspective
aligns with the principles of labor laws, which are crafted to shield vulnerable workers from
exploitation and ensure their welfare.24

4. CONCLUSION
The gig economy in India is poised for remarkable growth, and the data reveals a promising
trajectory. According to the International Labour Organization (ILO), India stands as the
second-largest gig economy globally, with approximately 56% of all gig workers in the Asia-

22
Uber BV v. Aslam [2021] UKSC 5
23
ibid
24
ibid

9|Page
Pacific region being based in the country. 25 Additionally, a Nasscom report projects that the
Indian gig economy is set to expand at a Compound Annual Growth Rate (CAGR) of 17%,
reaching a workforce of 23.5 million gig workers. The growth forecast indicates a substantial
market size of $455 billion by 2023.26 These figures underscore the gig economy's potential
to be a pivotal component in India's pursuit of becoming a $5 trillion economy by 2025,
offering a means to bridge income disparities and combat unemployment.27

A study conducted by the Boston Consultancy Group (BCG) further accentuates the
significance of the gig economy in India's economic landscape. It estimates that this
emerging economy has the capacity to generate up to 90 million jobs in non-farm sectors,
which would represent about 30% of India's total workforce. 28 Moreover, the growth of the
gig economy is anticipated to yield efficiency and productivity gains, contributing as much as
1.25% to India's Gross Domestic Product (GDP). This underscores the substantial potential
for the gig economy to not only provide employment opportunities but also boost overall
economic growth.

Already, the gig economy has begun to make inroads across various sectors, and as it
continues to mature and expand, it holds the promise of delivering a profoundly positive
impact on India's diverse range of industries and sectors.29

The burgeoning demand for gig workers, coupled with a surge in participation, particularly
among the youth and women, underscores the increasing popularity of the gig economy in
India. Among the driving forces behind this economic shift, three prominent sectors stand
out: ride-hailing, e-commerce, and food delivery. As the gig economy gains momentum, the
Indian government has initiated measures to address the challenges confronting gig
workers.30

In 2020, the Ministry of Labour and Employment proposed a comprehensive social security
scheme tailored to the needs of gig workers. This scheme encompasses critical elements such
as health and life insurance, disability coverage, and the contemplation of a code of conduct
for gig platforms.31 The overarching goal is to ensure equitable and fair treatment of workers

25
https://www.businesstoday.in/latest/economy/story/how-indias-gig-economy-is-shaping-up-thanks-to-startups-369840-2023-02-11
26
https://www.businesstoday.in/latest/economy/story/how-indias-gig-economy-is-shaping-up-thanks-to-startups-369840-2023-02-11
27
https://www.niti.gov.in/sites/default/files/2022-06/Policy_Brief_India%27s_Booming_Gig_and_Platform_Economy_27062022.pdf
28
ibid
29
ibid
30
https://www.financialexpress.com/education-2/indian-gig-workforce-to-witness-200-jump-by-2030-niti-aayog/2972631/
31
https://www.financialexpress.com/education-2/indian-gig-workforce-to-witness-200-jump-by-2030-niti-aayog/2972631/

10 | P a g e
operating within the gig economy. Additionally, in March 2021, the government announced
its commitment to establishing a new set of regulations aimed at overseeing the gig economy
and furnishing legal protection to gig workers. This proactive approach is designed to
safeguard gig workers from potential exploitation by platform companies.

Furthermore, the Government of India (GoI) has launched several skill development
initiatives, including the “Pradhan Mantri Kaushal Vikas Yojana” (PMKVY), to empower
gig workers with new skills and enhance their employability. These initiatives exemplify the
government's commitment to addressing the challenges faced by gig workers and providing
them with the tools they need to succeed.32

In response to the economic disruptions caused by the “COVID-19” pandemic, the GoI has
also introduced financial assistance schemes to aid gig workers who have suffered a loss of
livelihood. Initiatives such as the “Pradhan Mantri Garib Kalyan Yojana” underscore the
government's dedication to providing social security, legal protections, and improved
working conditions for gig workers.33

Nevertheless, there remain notable gaps in the protections afforded to gig workers, leaving
many vulnerable to exploitation and abuse. Achieving comprehensive safeguards requires
enhanced collaboration among the government, employers, and workers' organizations to
ensure that gig workers can exercise their rights and access the entitlements they deserve.

Despite the challenges, the future of the gig economy in India appears promising, with
continued growth expected both in the number of gig workers and the breadth of services
they offer.34 This evolution underscores the dynamic nature of the gig economy and its
potential to reshape the Indian labor landscape positively.

BIBLIOGRAPHY

Books:

1. Kalleberg, Arne L. (2018). "Precarious Lives: Job Insecurity and Well-Being in

Rich Democracies." Wiley.
2. Guy Standing. (2019). "The Precariat: The New Dangerous Class." Bloomsbury
Academic.

32
ibid
33
ibid
34
https://www.financialexpress.com/education-2/indian-gig-workforce-to-witness-200-jump-by-2030-niti-aayog/2972631/

11 | P a g e
Academic Articles:
3. Chatterjee, D., & Barman, T. (2020). "Gig Economy in India: Challenges,
Opportunities, and Implications for the Future of Work." Indian Journal of Industrial
Relations, 55(2), 286-300.
4. Srivastava, A., & Sharma, S. (2019). "Precarious Work and Occupational Health
and Safety among Uber Drivers in the Delhi-NCR Region, India." Social Sciences,
8(7), 204.

Reports:
5. International Labour Organization (ILO). (2020). "World Employment and Social
Outlook: Trends 2020." ILO.
6. Boston Consulting Group (BCG). (2021). "Unlocking the Full Potential of Gig and
Platform Workers in India." BCG.

Government Publications:
7. Ministry of Labour and Employment, Government of India. (2020). "Social
Security Scheme for Gig Workers and Platform Workers." [PDF Document]

Websites and Online Resources:

8. Economic Times. (2021). "India's Gig Economy to Grow at 17% CAGR to $455
billion by 2023: Nasscom." [Webpage]
9. International Labour Organization (ILO) - India. (n.d.). "Gig Economy in India: An
Overview." [Webpage]
10. NITI Aayog. (2021). "Gig Economy in India: Market Dynamics and
Opportunities." [PDF Document]

12 | P a g e