Context

• Amidst the continued evolution of the concept of “gig workers”, a significant movement recently took place in India, which took the form of a nationwide digital strike on Diwali this year.
• It was organised by the Gig and Platform Services Workers Union (GIPSWU), India’s first union dedicated primarily to women gig workers.

Gig Workers

• Gig workers are people who work with different companies or individuals for short-term projects or tasks rather than a traditional job.
• These jobs are typically temporary and do not involve a long-term employment contract.

 What is the Gig Economy?

• Gig workers are part of a new type of economy called the gig economy.
• In this economy, traditional jobs are replaced by work based on small projects.

Examples:

• Freelancers: Writers, graphic designers, web developers, etc.
• Drivers: Drivers working through apps like Uber, Ola
• Cooks: Working through apps like Swiggy, Zomato
• House cleaners
• Online tutors: People giving tuition on online platforms

Profits:

• Flexibility: Gig workers can choose their work schedule and location.
• Variety: Gig workers can perform a variety of jobs.
• Higher earnings: Gig workers can sometimes earn more than people in traditional jobs.

Challenges:

• Unregulated nature: The gig economy is largely unregulated, so workers have little job security and very limited benefits.
• Skills required: A worker needs to be adequately skilled. Unless someone is extremely talented, their bargaining power will inevitably be limited.
• While companies regularly invest in training employees, a gig-economy worker must upgrade their skills at their own cost.
• Demand-supply imbalance: There are already many more potential online freelance workers than permanent jobs and experts believe this imbalance between demand and supply will grow further over time, leading to a decline in wages over time.

 Labour code for gig economy:

• The Code on Wages, 2019 provides for universal minimum wages and minimum wages for gig workers (including in organised and unorganised sectors).
• The Code on Social Security, 2020 recognises gig workers as a new occupational category.
• It defines a gig worker as a person who works or participates in work arrangements outside the traditional employer-employee relationship and derives income from such activities.