https://yourstory.com/2018/02/gig-economy-labour-welfare/
1.What are your initial thoughts about gig-economy or
freelance movement culture? Is India among the world’s leading gig economies?
Gig
economy or peer to peer economy or shared economy or collaborative economy
indicates increasing trend of
-
preferences for work hour flexibility,
-freedom of choice of work,
-use
of technology, Apps, mobile and internet services
-micro
entrepreneurship due to unleashed risk taking ability, knowledge base, institutional support like
start up, stand up India, self help group like micro credit led venture
-disruption
in existing employee- employer relationship as during command height of state
led economy as in India pre 1990s
-
search for skilled, efficient workers which are scarce, so few are hired to
serve at multiple places
-
surge of knowledge based economy as
service sector ruling the roost all over world
-
automation in industry laying off retrenchment, so individual searching for job
at many places
- nuclearization
of family structure, break of joint family causing need of domestic workers who in turn working at many places
-
weakening of labour unions( idea of communism n socialism getting dent from onslaught of market fundamentalism)
Gig
economy corresponds to culture of contracting out as in outsourcing of work,
project based employment, and public private partnership etc- all such
development is on assumption of such customized hiring of workers is more
efficiency/profit//quality oriented. The very culture of consumerism and market
economy, profit seeking by hook and crook has led to informalization of work
culture at the cost of long term organizational culture. New norm is fragmented
loyalty of employees towards multiple enterprises at a time or with none at the
same time. It has trade off in terms of casual work culture, no social security
support, no sense of stakeholdership, violation of labor laws, loss of
bargaining power of workers, no emphasis on skill/long term career plan.
India
is one of the largest emerging economies where there is simultaneous display of
formal as well informal sectors. The very sheer demographic size trivializes
the effort of formalization effort of employment. The need of 1million job each
month is unmet by paltry growth of formal employment at rate of 1-2 lakh each
month. So, huge workforce is getting casual, informal work and is getting
involved in freelancing and that in turn gigging the economy.
Besides
, the automation, technology inclusion, penetration of internet and mobile
technology, entrepreneurial forces unleashed by incubating centers, microcredit
support, government endeavors as in start up, MUDRA schemes, skill India,
Digital India etc. are fuelling the Indian Gig economy which potentially seems
to blow up to $350 bn plus economy b 2025.
The
philosophical tone of Gig economy is to conform the idea of capitalism,
individualism, liberalism, meritocracy, marketism, so for developing countries
like India this trend may be in infancy in comparison to EU and USA and other
developed economies where 30-40% of work force are involved in Gig economy.
Nevertheless, the very volume of large
workable population does indicate such trend.
2. What’s
rate at which gig economy/ informalisation of work is growing in India?
3.About 24% of the global freelance workforce comes from
India. What are the reasons it is catching up so fast and why is it so popular
among the employers?
Reasons for catching up—
1. . Flexible work hours in
comparison to mechanistic 9-5 pm , so a sense of freedom, disposable time to
get involved in recreation socialization,
2. Burgeoning aspiring youth populace
fantasized by the idea of entrepreneurship,
3. Technology getting in every
hand spurring the growth trajectory,
4. Women folks so far suppressed by social
sanction finding such flexibility a way of asserting individuality,
5. A value to merit being recognized, good
earning from multiple sources with less obligation as in formal
employee-employer relations,
6. Informalization of work due to
unmet rate of employment,
7. Booming of service sector as
in tourism, real estate, transportation, insurance, hospitality etc..
8. Foreign intervention due to
globalization, global players like uber, Arnbnb coming up to tap Indian market,
9. Government is too soft to
ensure ease of doing business as in its labour law to give power of hire and
fire policy (raising the threshold of number of employee to let law be applied)
Becoming popular among Employers---
1 .Employers find it as an alibi
for mandated labor laws, wage and social
security law, factor laws etc. Which
were undue policing by government.
2. No need to invest on skilling
employees,
3. The increased efficiency, qualitative
outcome from skilled workforce on competitive basis increased the credibility
of products and enterprise, so more profit, good will.
4. You think the gig economy is recklessly eroding the
social welfare objectives of various labour legislations?
Gig economy
encourages an individual based work culture; it doesn’t binds an individual to
any one enterprise, so the obligation of the enterprise to look after the
employee gets trivialized. It is not bound by labour laws as in factory act to
ensure good working condition, or social security act as maternity benefit to
women in terms of paid leave etc, or gratuity act to pay a lump sum amount for
working with enterprise for long or provident fund and miscellaneous act to
ensure secured future or a call for pension to support lifelong not only for
the employee but for his/her dependents.
For India like
country who has obligation as per “directive policy of state policy”(DPSPs)
must meet the mandates of article 41, 42,43,46 etc. which is socialistic in
nature not compatible with Gig like culture which leaves an individual on his/her
own fate.
As Gig economy disrupts the formal
employer-employee relationships, so the erosion of the idea of social welfare.
No enterprise will feel genuine obligation for wandering loyalty as an employee
out of better deal work at many palaces as part time.
However, there
is need to remap the trend and legislate the need of social security for a
developing countries like India where most of the workers don’t have
negotiating power vis -a vis wage and better working condition.
5. What do you have to say about the size, scale and
loopholes associated with the gig economy, particularly against the background
of unionization?
Unionization
has been a natural sociopolitical development out of labor led economy. The
very recognition of ILO as a prominent international organization working for
better deal of workers signifies unionization or unity of labors. However, the
growth of “individual pursuit” in labor
market has broken the unity of workers, so the collective loss in terms of
getting due pie from profit share, better negotiating power, and a “say” in
management.
Gig Economy
discourages institutionalization of work culture and hence a randomness in
overall work dynamics. So, the seeming freedom, flexibility, meritocratic
culture like attributes out of Gig Economy ma not suit to each socioeconomic
setup.
6.The freelance movement is also hampering the livelihoods
of many labour communities who were heavily dependent on permanent nature of
jobs. E.g., Railway caterers effected by the digitization of food orders, auto
drivers losing out becoz of Ola & Uber etc… In this context, how is it
detrimental to the labour class?
It is well known “technogical
intervention” is double edge sword. In service sector it is removing
intermediaries and as sense of “customer sovereignty” is being felt. But the
backlash of automation or technological interface can be seen on employment of
those who were doing those jobs.
Labours have always been tools to
meet the end of profit and customer satisfaction. There has not been any
emphasis on empowerment of means as here on labours rather there have been
systematic efforts to resize, retrench, prune, lean the work force to decrease
the input cost. So, the the ideas of Gig Economy is definitely detrimental to
labour class when it is- breaking the permanency of employee-employer
relations, abolishing the social security system, hanging a sword of retrenchment
and no system of career based employment.
Nevertheless, It gives
opportunity to labour class to come out of comfort zone, reorient itself, skill
for higher pay up. Here, in context of UBER it cant be denied the idea of
technological intervention is good in terms of finding customer at tap of an
App. Yes, the role of UBER in terms of fees it charges, employer- employee
relationship etc. can be better determined to sustain the business model for
win –win situation for each. The so called each driver is a partner with UBER
is a camouflage undermining the sanctity of employer- employee relationship and
hence violation of various laws concerning it.
7.Which are the
sectors where informalisation of jobs is rampant? You think our government schemes
also promote contractualisation of work which don’t aim at upliftment of our
labour class?
Informalization
of jobs is rampant in-
1.
Agriculture sector as there is no established set up to make
agriculture as industry, so no labor law upholds here,
2.
Construction sector- the increasing need of infrastructure to meet
economy, housing to house population, establishments to sustain the growth of
the country etc. have attracted a lot of workers without proper regulation or
formalization because of time bound construction activity and no apt law to
deal with this loophole in labor ecology.
3.
Tourism sector
4.
Hospitality and hotel
5.
Domestic workers
6.
Illegal Mining
7.
Kiln Industry
8.
Cottage Industry
9.
In general service sectors like online tutoring, counseling, and individual
start up etc.
10.
Media
Government in
new ethos of New Public Management is too adopting market led work culture to
make it competitive and cutting the cost. The culture of contracting out, PPP
Model, Outsourcing, project based job creation, Ad hoc employment etc. which
don’t aim to uplift labour class. As said earlier labour class is means which
is only refined to cut the cost rather taken as obligation as in past the
public sector culture had emphasis to create employment in hinterland. The
external forces of globalization, global treaty as in WTO etc are influencing
government labour policy. The Right to work as in NAREGA like schemes avail
only 100 days work that also unskilled one work as only stop gap arrangement
and spurs the culture of informalization.
Nevertheless,
new labour laws, Apprenticeship act, draft on social security code etc.
collectively emphasize on formalization of work culture.
8.Freelance jobs are often marketed as being flexible
because they allow for better work-life balance, especially in the IT industry
which depends on major outsourcing of work. However, what are the long-term
implications of this trend?
Long Terms
implications are-
1.
Non emphasis on skill enhancement of work force
2.
A threat to intellectual property right or business secrets like thing
which can be used to undermine competitiveness when a worker is working for
multiple enterprises
3.
Social security system in ad hoc manner a burden on state exchequer at
later stage
4.
Growth of the economy would be haphazard, concentration of wealth in
few hand
5.
It will create bubble as such chaos of ad hoc and random work culture
will not be predictable
6.
Big enterprises will net in all talents at high pay roll so a dent to
democratic dynamics in market
9. Freelancing as an
employment option has not yet penetrated the rural landscape in India. Are
there chances this trend can soon expand?
The idea of
freelancing is yet to percolate down to primarily agriculture based rural
economy. Still the ethos of individualism,
breakage of joint family culture, end of feudalism etc. are yet to take deep
root in hinterland, so the freelancing or assertion of individuality is a far
thing.
Nevertheless,
the increasing penetration of mobile/internet/digital literacy, agriculture and
allied sectors taking a shape with government as well as corporate intervention,
service sector getting a prominence with rural tourism etc. can potentially
pave the way for freelancing as an employment when aspiring youth are restless
to be integrated with globalised world even in rural counterpart.
The very
paradoxical situation of India’s growth profile doesn’t easily predict the
chances of it getting expanded due to multiple supporting and opposing forces
act at the same time. Various schemes like start up, stand up India, skill
India, microcredit support to SHGs, faster technological penetration do
indicate so.
10.What does this trend mean to the limping Indian Economy
in general? Where are we headed next on the employment map with this fast
emerging gig trend?
1.
An encouraged , talented youth will have plethora of opportunity to
cut a niche in labour market but this deal will not be available to big chunk
of labour, so a demographic backlash would be felt impacting Indian economy in
terms of unutilized labour pool available at low cost, so a dent to
competitiveness.
2.
Indian economy despite being connected to developed world cannt
affords to overlook the societal reality where state led compassionate care is
a ever felt need as the very legislation of Right to work exemplifies it.
3.
Gig Economy flourishes in a well developed set up where people are
capable to look after themselves for most of the basic needs. Such trend in
developed world can be seen but for Indian economy such trend will create a
social chaos.
4.
The outgrown service sector contributing upto 60 % of GDP with only
around 20-25% workforce engagement enhance chance of gigging when IT sector is
in its prominence here.
5.
Even hinterland too can see the gigginess of economy when facilitating
development like agri based service sector will take the shape.
6.
Indian economy will miss the bus of manufacturing sector development
when neither automation will develop well nor labor based industry will take
shape depending highly on service sector and its gigginess.