App-based gig workers' earnings declined in 2021: Report

Gig workers across all platforms saw a decline in their earnings in 2021 as a result of jump in fuel costs, platform commissions and other expenses, stated a report from the Fairwork India Team.

The report, “Fairwork India Ratings 2021: Labour Standards in the Platform Economy,” was made by the Centre for IT and Public Policy (CITAPP), International Institute of Information Technology Bangalore (IIIT-B), in association with Oxford University.

“The report examines the working conditions of app-based gig workers. In its third year, the study assesses eleven platforms, from service-domains such as domestic and personal care services, logistics, food delivery, e-pharmacy and transportation,” said the report.

The report used desk research, worker interviews, and evidence provided by the platforms to score companies across the “ five principles of fair gig work”; fair pay, fair conditions, fair contracts, fair management, and fair representation. The report scored 11 platforms including Amazon, BigBasket, Dunzo, Flipkart, Ola, PharmEasy, Porter, Swiggy, Uber, Urban Company and Zomato.

As the cost of fuel has increased, reduction in rate cards and incentives have led to gig workers steadily losing out on their income over the years on such platforms. But some companies are now starting to take steps to protect their workers.

“However, in consultation with the Fairwork project, three platforms have committed to ensuring minimum wage after accounting for work-related costs for all their gig workers,” the report stated.

Many platforms have been unable to account for occupational risks such as road accidents, theft, violence, and adverse weather conditions as well as the risk of contracting COVID-19 during the course of the work. The report stated that three platforms took the initiative to provide workers with accident insurance policies, and also provided masks, sanitisers, a COVID-19 vaccination drive and insurance cover.

Some platforms also improved the appeal process for workers to improve management of gig workers, while the accessibility and readability of contracts also improved. Though the report stated that “the (mis)classification of gig workers as ‘independent contractors’ or ‘partners’” was still an issue.