Rising number of penalties imposed by aggregator platforms is a common concern among gig workers.
DH FILE PHOTO FOR REPRESENTATION
The nationwide strike by gig workers on New Year’s eve has drawn attention to the working conditions in this sector and the state of the gig economy. Niti Aayog estimates the number of gig and platform workers in India in 2029-30 at 2.35 crore, rising from one crore in 2024-25. Poised for significant growth, the sector employs a major segment of the country’s workforce, but as unorganised and casual employees, these workers are not entitled to labour protection and most welfare measures. Studies and discussions have underscored their poor working conditions and demands, but the platforms have not responded well. A token strike called by the workers on December 25 disrupted deliveries in some places. Wednesday’s stir did not have a major impact on services, but the two strikes have revived discussions around the workers’ rights.
The demands raised by the Indian Federation of App-based Transport Workers include a rollback of 10-minute delivery models, a fair and transparent wage system, social security including health benefits, accident insurance and pension, end to arbitrary and algorithmic penalties, and regulation of platform companies under labour laws. These workplaces do not follow a traditional employer-employee relationship and offer no scope for direct negotiations involving the management. Most of the employees are overworked and poorly paid. According to a survey, over 80% of them work more than 10 hours a day and most earn below Rs 15,000 per month. Many have faced arbitrary ID deactivation; the conditions are stressful and inhuman for most, especially for personnel in the 10-minute delivery stream. The government has stated that gig workers are covered under the Code on Social Security, which came into force last month, and are therefore entitled to a host of welfare measures. But these claims need to be viewed in context of formal coverage of the workforce – it has been noted that only 5% of gig workers are registered on the e-Shram portal.
While the workplace conditions and the workers’ demands have been recognised, the challenge will be in translating assurances into practice. Mandatory contributions of 1-2% of the aggregator’s turnover to a social security fund, and Aadhaar-linked universal account numbers are important steps. But it is not known how the social security schemes will be implemented. Ad hoc incentives and payouts will not suffice. The grievances call for strong regulatory oversight on work hours, wages, and other benefits, in accordance with the law. At a time when governments are bringing forward legislation to ensure fair wages and welfare measures for gig workers, India cannot afford to look away.