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The Sharing Economy and the Future of Work

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The Sharing Economy and the Future of Work THE SHARING ECONOMY AND THE FUTURE OF WORK POST-CONFERENCE REPORT FIRST RELEASED: 2016 OCT. 24 PREPARED BY: LAST UPDATED: 2016 OCT. 26 TAMAR BECKER & AMAN RAJWANI THE TED ROGERS SCHOOL OF MANAGEMENT'S CENTRE FOR LABOUR MANAGEMENT RELATIONS AT RYERSON UNIVERSITY Executive Summary ............................................................................ 2 Context ............................................................................................... 8 Sharing Economy 101 ....................................................................... 12 Key Terms .................................................................................................................. 12 History ....................................................................................................................... 18 Where did the term ‘sharing economy’ come from and how did it get so popular? .................... 18 What is the range of activities within the sharing economy? .......................................................... 18 What forces enabled the emergence of the sharing economy on such a grand scale? ............... 21 Statistics ..................................................................................................................... 26 What does participation in the sharing economy look like? ............................................................ 26 Challenges ................................................................................................................. 28 Responsibilities, Risks, and Responses ............................................. 30 1. Consumer Protection ............................................................................................. 31 2. Economic Growth .................................................................................................. 33 3. Equity .................................................................................................................... 37 4. Labour ................................................................................................................... 38 5. Social Security ....................................................................................................... 41 6. Tax Compliance ..................................................................................................... 43 7. Training ................................................................................................................. 44 Conclusion ........................................................................................ 45 References ........................................................................................ 46 Centre for LAbour Management Relations The Centre for Labour Management Relations (CLMR) is a multi­disciplinary research centre that seeks to promote collaborative, ethical, innovative, proactive and sustainable best­practices for labour and management to avoid conflicts, build relationships, and create trust in a way that results in greater productivity and profitability for businesses, increased job and income security for workers, and decreased inequality and injustice for all of society. Since November of 2010 the CLMR has funded 50+ research projects, hosted 60+ events that have produced 10+ publications, affected the learning experience and skills development of 2,000+ students, and has had it’s distinguished faculty featured in 100+ academic publications and 600+ media articles. To learn more about the CLMR please visit https://www.ryerson.ca/clmr/ BUZZ HARGROVE MAURICE MAZEROLLE Co­Director, CLMR; Ryerson University, Co­Director, CLMR; Ryerson [email protected] University, [email protected] TAMAR BECKER AMAN RAJWANI Research & Special Projects Research & Special Projects Coordinator, CLMR; Ryerson Coordinator, CLMR; Ryerson University, [email protected] University, [email protected] Acknowledgements The CLMR would like to thank the following individuals for their contributions toward the "Sharing Economy and the Future of Work" conference: Laura Anderson, Urban Health Researcher, The Wellesley Institute; Andrew Cash, CoFounder, Urban Worker Project; Charles Davis, Professor of Media, Ryerson University; Roxanne Dubois, National Representative, Organizing, Unifor; Valerie Fox, Chief Innovation Consultant, The Pivotal Point; Erin Gee, Sharing Economy Project CoLead, Deputy Ministers’ Committee on Policy Innovation at the Government of Canada; Ted Graham, Innovation Leader, PricewaterhouseCoopers; Trish Hennessy, Director, Canadian Centre for Policy Alternatives; Josh Hjartarson, Vice President, Public Sector, KPMG Canada; Tim Hudak, Former MPP Niagara West, Legislative Assembly of Ontario; Melanie Knight, Assistant Professor of Sociology, Ryerson University; Danielle Lamb, Assistant Professor of Human Resources, Ted Rogers School of Management; Brian Langille, Professor of Law, The University of Toronto; Chris MacDonald, Director, Ted Rogers Leadership Centre; Joe Manion, Director of Strategic Program Development, Toronto Employment & Social Services; Maurice Mazerolle, Associate Professor of Human Resources,Ted Rogers School of Management & Director, CLMR at Ryerson University; Bill Murnighan, Director of Research, Unifor; Lis Pimental, President, UNITE HERE Local 75; Allison Ridgeway, Student, Ryerson School of Journalism; Myer Siemiatycki, Professor of Politics and Public Administration, Ryerson University; David Wakely, Senior Partner, Filion Wakely Thorup Angeletti LLP; Margaret Yap, Associate Professor of Human Resources, Ted Rogers School of Management. Disclaimer: The Centre cannot guarantee that the information contained in this report is accurate, complete or appropriate for use by any third party, and they hereby expressly disclaim any and all responsibility or liability to any such person or entity in connection with their use of this report. Executive Summary “Work hard in school, get as much education as you can, play by the rules, and you will do well in life. That was the advice I got from my parents, and it clearly served me, and the majority of my baby boomer cohort, quite well.”1 – Thomas Kochan, Professor of Work and Employment Relations at MIT, and Author of Shaping the Future of Work. Unfortunately, this advice may not assist today’s millennials and future generations of workers in their careers. The employment landscape today is drastically different than it was when baby boomers entered the job market; acquiring an education and working hard may no longer be enough for job-seekers to set themselves apart to secure a good job, let alone any job at all. The world of work is changing and it is prudent to examine what forces are enabling these transformations so that we can leave a legacy of sustainable jobs that encourage cultural, economic and social growth for the future of work. The future of work is being shaped by a variety of demographic, legal, regulatory and social forces, which has led to changes in how organizations are structured, arranged, managed, and regulated. This, in turn, has changed the way that work is distributed, organized, designed, and performed. Technology is one force that has begun to significantly alter the future of work. The rapid expansion and growth of intermediary platforms (e.g. agents like Uber, Airbnb, and Task Rabbit that facilitate a broad range of economic activities) have influenced these organizational and workplace changes in the labour market. Over 50% of all new Canadian jobs are non-standard work arrangements (e.g., part-time, temporary, on contract, freelance, self-employed or unpaid positions) 2, and this figure may include the number of workers providing their services on one or more intermediary platforms in the sharing economy. The sharing economy is a term that is being used to describe the broad set of economic activities where individuals are using digital applications provided by intermediary platforms to create opportunities for others to buy, rent and/or trade goods and services. Others refer to these economic activities as: the gig economy, the new economy, the platform economy, and even the uber economy. While there are differences among the choice of terms used by stakeholders, all of these terms describe an aspect of this new world of work. The premise of the sharing economy has proven relatively popular over recent years with consumers seeking to borrow or reuse goods rather than own them, and individuals seeking to maximize their unused assets by selling, renting and/or trading them as a source of revenue and/or income. Global revenues from intermediary platforms were $15 billion in 2015, and this figure is projected to climb by 2025 to $335 billion.3 Additionally, 40% of Ontarians reported being consumers in the sharing economy in 2015.4 2 “The world of work is changing and it is prudent to examine what forces are enabling these transformations so that we can leave a legacy of sustainable jobs that encourage cultural, economic and social growth for the future of work” 3 Historically, people have always engaged in non-standard work arrangements. While this growth is not new, the number of individuals choosing to work in these arrangements has been growing. Several studies and surveys demonstrate this growth: • In the United States, the percentage of workers engaged in alternative work arrangements rose from 10.1% in February 2005 to 15.8% in late 2015.5 • In Canada, full-time employment fell by 71,000 jobs from June to July, while part-time work rose by 40,000 jobs.6 •
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