A study by Fairwork India, which scored 11 top aggregators on a scale of 10 on fair wages, fair contracts, fair working conditions, fair representation, found most of them “not committed” to ensuring a living wage to their workers (who some of them refer to as partners), and none scoring beyond 6.

The platforms studied were Amazon Flex, Bigbasket, BluSmart, Flipkart, Ola, Porter, Swiggy, Uber, Urban Company, Zepto and Zomato.

The report found that only Bigbasket and Urban Company have a minimum wage policy that guarantees hourly local minimum wage after factoring in work-related costs.

What’s more, none of these platforms were willing to recognise the workers’ right to collectively bargain or unionise, which is a “vital dimension of fairness at work”.

The report said it found it “disconcerting that despite the rise in platform worker collectivisation across the country over the past six years, there was insufficient evidence from any platform to show a willingness to recognise a collective body of workers.”

The report, Fairwork India Ratings 2024: Labour Standards in the Platform Economy, was written by researchers from the Centre for IT and Public Policy, International Institute of Information Technology Bangalore (IIIT-B), and the Oxford Internet Institute, University of Oxford.

The report evaluated the conditions of work across 11 platforms in India at location-based services in sectors, such as domestic and personal care, logistics, food delivery, and transportation.

“Each company was awarded a score out of 10 according to the Fairwork Principles: fair pay, fair conditions, fair contracts, fair management and fair representation. Each score was determined based on a combination of desk research, worker interviews conducted in Bengaluru, Chennai, Delhi, Kochi, Thiruvananthapuram, and-when possible-evidence provided by the platforms,” said the report.

“This year witnessed gig workers’ welfare increasingly gain attention in political manifestos and legislative initiatives. But with the implementation of these efforts remaining uncertain, and platforms redefining gig work, research and advocacy to improve the conditions of gig workers are ever more relevant,” said Professors Balaji Parthasarathy and Janaki Srinivasan, the principal investigators of the team, in a statement.

Among the key findings on ‘fair pay’, the report found that only Bigbasket and Urban Company provided evidence of a “minimum wage” policy.

“No platform was able to evidence that all of their workers earn the local living wage after costs, so none were awarded the second point for Fair Pay,” said the report.

On ‘fair working conditions’, the study found that Amazon Flex, Bigbasket, BluSmart, Swiggy, Urban Company, Zepto and Zomato were able to prove that they provide adequate safety equipment and periodic safety training to workers on their platforms.

Amid a job that is prone to road mishaps, “only Bigbasket, Swiggy, Urban Company, Zepto and Zomato evidenced that their companies provide workers with accident insurance coverage at no additional cost, monetary compensation for income loss in cases they are unable to work for medical reasons other than accidents, and ensuring a worker’s standing is not negatively affected when they return after a break taken with prior notice to the platform.”

As for “fair” work contracts, six out the 11 —  Bigbasket,
BluSmart, Swiggy, Urban Company, Zepto, and Zomato — provided evidence that they ensure “the accessibility and comprehensibility of their contracts, and have protocols for the protection and management of worker data.”

“Bigbasket, BluSmart, Swiggy, Zepto, and Zomato, also evidenced the adoption of a change notification clause in their contracts, reducing asymmetries in liability (such as by a provision to compensate workers for losses due to app malfunctions and outages), the adoption of a Code of Conduct for their subcontractors, and making the variables influencing pricing transparent where dynamic pricing is used,” the report said.

As regards ‘fair management”, Amazon Flex, Bigbasket, BluSmart, Flipkart, Swiggy, Urban Company and Zomato were awarded the “first point” for evidencing due process in decisions affecting workers and channels for workers to appeal disciplinary actions.

“There was sufficient evidence from BluSmart, Swiggy, Urban Company and Zomato of regular external audits to check for biases in their work allocation systems, in addition to policies against discrimination,” the report said.

When it comes to the right to collectively bargain or unionise, a “vital dimension of fairness at work”, the report found it “disconcerting that despite the rise in platform worker
collectivisation across the country over the past six years, there was insufficient evidence from any platform to show a willingness to recognise a collective body of workers.”

Fairwork is an international research project that studies the working conditions of platform workers in more than 30 countries in Asia, Africa, Europe, North America and South America. The work is coordinated by Oxford Internet Institute and the Social Science Research Centre Berlin.

Courtesy: Newsclick

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Introduced in 2023, this system ranks delivery riders based on a point system, where a “perfect order” earns one point. Maintaining a gold status requires earning 70 points or more weekly, while falling below 50 points moves a rider to the bronze category. Despite Swiggy’s defense that all delivery partners receive basic insurance benefits such as accidental coverage and free ambulance services, many riders find the system unpredictable and are considering purchasing their insurance independently.

Why are gig work-based platforms not providing a blanket General Health Insurance—at least to individuals if not for families?

Swiggy’s stance on health insurance for its delivery agents exemplifies the broader challenges faced by workers in the gig economy. The company’s dynamic rating system, linking insurance benefits to performance metrics, introduces significant uncertainties and risks for its workforce. This system, while ostensibly offering benefits based on engagement levels, can penalize workers for situations beyond their control, such as personal emergencies or unforeseen circumstances. The gamification of gig work, as seen in Swiggy’s dynamic insurance plan, can lead to dystopian outcomes. By turning essential benefits into rewards and tying them to performance metrics, companies create a competitive environment that can push workers to their limits or actually make it miserable for them by not giving them the insurance when they need it the most. This approach can lead to overwork, stress, and even health issues, as workers strive to maintain their ratings and secure their benefits.

While Swiggy emphasises that all delivery partners receive some level of insurance coverage, the reality is that this coverage is tied to maintaining a high rating, which can be challenging in a job with unpredictable variables like traffic, customer moods, or health issues. The only insurance they get, irrespective of these variables, is the Swiggy Accident-related insurance. According to a 2022 post from Swiggy on its blog, this accident insurance seems to be active when the worker is delivering something on the platform. While it is normal for an employer to give its employee accidental insurance when the employee is always on the move, given that Swiggy is a gig work platform, it seems to have settled for the bare minimum expected of it.

The gig economy, by its nature, promotes flexibility and independence, but these benefits often come at the expense of workers’ rights and protections. Companies like Swiggy leverage this flexibility to implement performance-based incentives that may inadvertently contribute to a culture of overwork and stress among their workforces.

This system operates under a veil of flexibility and independence, but it obscures the inherent instability and insecurity faced by gig workers. The false promise of flexibility often masks the precarious nature of gig work, where workers are subject to the whims of algorithms and customer ratings.

Moreover, the opaqueness of these systems further exacerbates the problem. Policies and rating systems are often not transparent, leaving workers in the dark about the rules that govern their work and their livelihoods. This lack of transparency can lead to feelings of powerlessness and frustration among workers. For example, Swiggy, in its communique, states that since the workforce on Swiggy varies day by day, where some people disappear from being on the platform for weeks, it becomes difficult to give insurance. However, no one except Swiggy knows what percentage of Swiggy delivery fleet have not logged in for weeks, and who have been working on the platform for a while and have taken a break for a week. This opacity allows

What can the governments do?

Governments can take up the issue with platforms and nudge them to give better health insurance benefits rather than just accident insurance which is the bare minimum.

Rajasthan and Karnataka have become pioneers in providing social security and insurance benefits to gig workers. The Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill 2023, recently passed by the Rajasthan Assembly, establishes a welfare board and a social security fund for gig workers. A tax on digital platform transactions will fund these schemes, providing benefits like accident insurance, health coverage, maternity benefits, pension contributions, and scholarships.

Similarly, Karnataka announced free life and accidental insurance worth Rs 4 lakh for gig workers, covering employees in e-commerce companies like Swiggy and Zomato. These initiatives mark a significant step towards protecting and supporting gig workers who were previously lacking adequate social security and regulatory frameworks.

This is not a national phenomenon, and Karnataka and Rajasthan cover a very small part of the total gig worker ecosystem. The situation in the gig economy calls for urgent attention and action. As the gig economy continues to grow, it is imperative that governments, companies, and society at large work together to ensure a more sustainable and equitable future for all workers. This includes providing adequate support and protection to workers, promoting transparency in policies, and ensuring that the benefits of the gig economy are accrued to whoever runs the platforms and the workers suffer because no one stood for them. And finally, it is important to reorganize collective thinking about the status of gig work in the country—especially with respect to ride-hailing, food delivery, and home services app. The non-existence of managers and flexibility to work when workers want should not take away the fact that there is significant control of the platform on the worker. As India moves towards fixed-term employments—which are gig works but for more than a few weeks/months—it becomes important to think whether we want the uncertainty of gig work to creep into the organized sector or for the greater certainty and social security of the organized sector to move into the gig economy.

(The author is part of the organisation’s legal research team)

Related:

Rajasthan’s Gig Worker Law, a step towards industrial democracy

Karnataka Budget 2023-24: CM announces Rs. 4 lakh life & accident insurance policy for gig workers

Report Highlights Poor Working Conditions for Gig Workers; Uber, Ola, Amazon Score Zero

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Kochi: The workers of Swiggy, the online food delivery platform, have been on an indefinite strike in Kochi since November 14. Around 5,000 delivery partners are on a logout strike demanding revision of the minimum remuneration for delivery. 

The workers are demanding a remuneration of Rs 35 for delivery in a 2.5 km radius against  Rs 20 for 4 km being paid now. 

The workers resorted to an indefinite strike after the tripartite talks held on November 14, by the Ernakulam district labour commissioner, failed and the demands were not accepted by the representatives of Swiggy. 

The delivery partners, as defined by the organisation, resorted to a token strike on October 31 to highlight their long pending demands. The workers, led by the Food Online Delivery Workers Union (FODWU) affiliated with the All India Trade Union Congress (AITUC) have announced to continue their strike until their demands are met.
 

‘INCREASE MINIMUM REMUNERATION’

The workers began their strike on November 14 after their demands were rejected by the management of Swiggy in the conciliation talks held by the labour officer in Kochi. The workers have been demanding to increase the remuneration which was last revised in 2018. 

Speaking to NewsClick, K N Gopi, Ernakulam district secretary of AITUC, said, “After enduring enormous physical strain in more than 14 hours of work per day, the workers are unable to survive with the measly income. They take home under Rs 500 per day, which is insufficient to run a family in any city.” 

Swiggy delivery workers participating in the protest held in Kochi.

“The present remuneration is very low, considering the fuel prices and the cost of living in a city like Kochi,” Sunil Kumar, president of the FODWU told NewsClick. “Around 80% of the remuneration they get for one delivery is spent towards fuel charges. What is left for the workers to feed themselves and their families?” he said.
 

‘INCENTIVES AND TIPS UNPAID’

The workers have also flagged issues with incentives and the transfer of tips paid to them online. 

“The company is promising an incentive of Rs 300 if the executives ride for Rs 750 in a day. As soon as they reach close to achieving this amount, the workers suspect of reducing orders,” Sunil Kumar said.

The workers have alleged that the orders are frequently stopped once they drive for around Rs 650 and they receive the next orders after a couple of hours. 

“Only a few workers prepared to be idle for such long hours are receiving the incentive. Most of them, despite riding for more than 10 hours, are not receiving the incentive due to the intentional reduction in orders,” Kumar alleged. 

The workers have also pointed out non-transfer of tips paid online by customers to their accounts. 

“A considerable section of the workforce are students working part-time to make ends meet. Considering this, the customers provide tips, most of which are not transferred to the workers immediately,” a worker told NewsClick.

The union office bearers claimed that for documentation purposes, the company pays incentives and tips only to a small section of the workers. “Similar is the case of rain charges. The customer pays the charge for food delivery during rains, but the workers receiving the same is a rarity,” Kumar said,
 

ENSURE A REDRESSAL MECHANISM

The demand for a redressal mechanism for the workers to address their concerns on payment-related issues also remains unaddressed. The union has alleged that only an over-the-telephone service is available for workers, instead of an offline portal to raise their concerns. 

“The gig industry is now employing a large workforce of youth, including women. This industry has very little investment since the workers bear the expense for vehicles, fuel, maintenance charges, phone and internet. The companies should ensure nominal wages instead of exploiting the educated and poor workforce,” Kumar added.

The workers have decided to hold a massive march in Kochi to reiterate their demands, taking cue from the Zomato workers in Thiruvananthapuram, who won back benefits after four days of strike. 

Courtesy: Newsclick

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