Mains Marathon

Approach:

• Introduction: Start your answer with the definition of gig workers.
• Body: Discuss the issues faced by them and possible measures to resolve those issues.
• Conclusion: Summarize the key points and conclude

Answer:

Gig workers, also known as independent contractors or freelancers, are individuals who work on a short-term or temporary basis to complete specific projects or tasks, often for multiple employers. They are not traditional full-time employees and typically don't have long-term contracts with the companies they work for. 

According to a report by Boston Consulting Group, India’s gig workforce comprises 15 million workers employed across industries such as software, shared services and professional services. 

Issues faced by gig workers in India:

• Lack of formal contracts and recognition: Gig workers often do not have formal contracts or written agreements with the platforms or clients that engage them. This makes them vulnerable to exploitation, arbitrary termination, non-payment or delayed payment of wages, and denial of benefits. 
• Lack of social security and protection: Gig workers do not have access to social security schemes such as provident fund, health insurance, maternity benefits, pension, etc. that are available to formal sector workers. They also do not have protection against occupational hazards, accidents, illnesses or injuries that may occur during their work.
  • They bear the costs of their own equipment, maintenance, fuel, internet, etc. without any reimbursement or compensation from the platforms or clients.
  • In March this year, a parliamentary Standing Committee had noted that gig and platform workers do not come under the purview of Employees’ Provident Fund.
• Lack of bargaining power and representation: Gig workers have limited bargaining power and voice in determining their wages, working hours, terms and conditions of work. They are often subject to unilateral changes in policies, algorithms, ratings, incentives, etc. by the platforms or clients that affect their earnings and opportunities. 
  • They also face difficulties in forming or joining trade unions or associations to collectively represent their interests and grievances.
• Lack of skill development and career progression: Gig workers face challenges in acquiring new skills and upgrading their existing skills to cope with the changing demands and expectations of the market. They also have limited opportunities for career advancement or mobility within the gig economy or beyond it. They may face discrimination or stigma due to their informal status and lack of credentials.

Measures required to address these issues:

• Formalization and recognition: Gig workers should be given formal contracts or agreements that specify their rights and obligations as well as those of the platforms or clients that engage them. They should also be recognized as workers under the relevant labour laws and regulations that apply to them according to their nature and category of work.
• Social security and protection: Gig workers should be covered by social security schemes that provide them with benefits such as health insurance, accident insurance, maternity benefits, pension, etc.
  • Gig workers should also be entitled to protection against occupational hazards, accidents, illnesses or injuries that may occur during their work and receive compensation or relief accordingly.
  • Recently, a parliamentary panel has asked the Ministry of Labour and Employment to formulate and implement welfare schemes for such workers at the earliest.
  • The Rajasthan Assembly recently passed a significant Bill aimed at extending social security benefits to gig workers.
• Bargaining power and representation: Gig workers should have the right to form or join trade unions or associations that can collectively bargain and negotiate with the platforms or clients on their behalf. They should also have access to grievance redressal mechanisms that can resolve their disputes or complaints in a fair and timely manner.
  • The platforms or clients should consult and inform the gig workers about any changes in policies, algorithms, ratings, incentives, etc. that affect their work.
• Skill development and career progression: Gig workers should have access to skill development programmes that can help them acquire new skills or upgrade their existing skills to enhance their employability and productivity.
  • They should also have opportunities for career progression or mobility within the gig economy or beyond it through recognition of prior learning, certification of skills, mentoring, etc. 
  • They should also be treated with dignity and respect by the platforms or clients and society at large.

The gig economy is a growing and dynamic phenomenon that offers opportunities and challenges for the workers, the platforms or clients, and the society at large. Government initiatives like e Shram portal and Database of Unorganized Workers including gig workers and platform workers are steps towards supporting gig workers, but a comprehensive policy framework is needed. This should ensure formalization, social security, and skill development while fostering innovation and competitiveness. A well-balanced approach can help the gig economy contribute to India's economic growth and inclusive employment.