Today was a day off for me on account of Labour Day. A holiday to mark the toil and struggle of the labour class. But what constitutes the labour class? This has been a subject of debate between economists, sociologists and legal professionals. Laypersons understood the labour class as anybody who works in a production unit. The “white collared” folks were the office going public. The former enjoyed more statutory protection than the latter.
But times they are a changin’. In 2016 the Madras High Court ruled that even an IT professional could be considered a “workman”. This landmark judgement shifted the idea of what a workman meant. While all of this was happening in the organised sector, a new phenomenon was brewing – the idea of gig work.
Enter – Platform Economy. The ability to hire resources using technology as a medium became the norm. Whether it was quick commerce, taxi services or even complex coding work. Gig workers came to dominate the scene and gig work became a promising employment alternative. It is estimated that there are about 8 million gig workers in India. Even the 2020 code on Social Security by the Government of India recognised Gig Work. It allowed for certain provisions for their welfare including setting up a social security fund.
However, that is where the rosy picture starts to fade. Gig workers are only mentioned in 1 out of the 4 labour law codes. They are not protected under occupational safety, minimum wage or even traditional union formation provisions. This means that they become more vulnerable to the shifts in the economy and also to hazards occurring on the jobs.(Delivery boy escaping dog, jumps off 3rd floor balcony, dies) Recent protests by delivery workers of a quick commerce company shows how seemingly minor changes can have a major impact on their daily earnings.
In absence of a legally recognised grouping, their collective bargaining rights definitely diminish especially supply exceeds demand. They continue to function in a limbo between traditional and non traditional employment. Likewise, construction workers who lay down the bricks for the new offices and houses remain vulnerable from the shocks of the boom and bust cycles. They appear at the construction sites, live there, build there and then disappear onto the next space.
There is a need to frame rules to take care of these issues. Platforms which thrive on gig work need to take the initiative of ensuring fair protection of wages, health and security for their workers. The cost arbitrage earned from engaging gig workers must be shared fairly for their welfare. While many companies do provide accident covers and access to emergency fund, success of claims is not always guaranteed. Additionally, there is an opportunity for micro-insurance players to step in and cover the uninsured.
Moreover, State Governments have a golden opportunity to frame fair rules for the gig workers. Rajasthan has shown the introducing a draft bill which outlines helpful measures for Gig Workers including a Welfare Board, a Unique ID and a 200 cr welfare fund. Niti Aayog’s policy brief of July 2022 states that India is likely to have 2.35 crore gig workers in the next 6 years. This means that the employers, the government and the citizens all have a stake in ensuring betterment of this invisible workforce.
Even as we remember the sacrifices of the labour class today, we must also prepare for safeguarding the invisible workforce which makes our lives a bit more convenient, everyday. This is also a part of Future of Work.