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Work on Digital Labour Platforms in Ukraine WORK ON DIGITAL LABOUR PLATFORMS IN UKRAINE ISSUES AND POLICY PERSPECTIVES Mariya Aleksynska (ILO) Anastasia Bastrakova Natalia Kharchenko (Kiev International Institute of Sociology) WORK ON DIGITAL LABOUR 02 PLATFORMS IN UKRAINE: ISSUES AND POLICY PERSPECTIVES Copyright © International Labour Organization 2018 First published 2018 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copy- right Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Licensing), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected]. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with a reproduction rights organization may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Work on Digital Labour Platforms in Ukraine: Issues and Policy Perspectives ISBN: 978-92-2-030734-2 (print) ISBN: 978-92-2-030735-9 (web pdf) Also available in Ukranian: Зайнятість через цифрові платформи в Україні. Проблеми та Стратегічні Перспективи, Geneva, 2018 978-92-2-030736-6 (print) 978-92-2-030737-3 (web pdf) The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authori- ties, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. Information on ILO publications and digital products can be found at: www.ilo.org/publns. Printed in Ukraine WORK ON DIGITAL LABOUR PLATFORMS IN UKRAINE: i ISSUES AND POLICY PERSPECTIVES ACKNOWLEDGEMENTS This project was coordinated by Mariya Aleksynska effort to share their experiences, and provided contacts (ILO INWORK). The document was co-written of other relevant respondents. by Mariya Aleksynska (ILO INWORK), Anastasia Special thanks go to three online platforms that helped Bastrakova and Natalia Kharchenko (Kiev International to recruit survey participants. In particular, we thank Institute of Sociology). Janine Berg (ILO INWORK) Kabanchik.ua (especially the content manager Olga Soroka, offered inspiring guidance, intellectual support, and who shared the information about the survey through practical advice throughout the development of this the mailing list of all platform users); Freelancehunt.com study. Oksana Nezhyvenko (Kyiv Mohyla Academy) (especially Oleg Topchiy, platform creator); and Upwork. provided outstanding research assistance. The report com (especially Kateryna Bozhkova, Upwork Business benefitted from excellent peer review comments of Development Partner for CEE). Uma Rani (ILO RESEARCH), Patrick Belser, Florence Bonnet, Martine Humblet (ILO INWORK), Valerio De We are also particularly grateful to the co-founder of Stefano (University of Leuven), Miguel Malo (University the specialized Facebook group “beFree – freelance for of Salamanca), as well as a fruitful discussion during a Ukrainians”, Pylyp Dukhliy, for advertising the survey preliminary presentation at the ILO in Geneva. Thanks and promoting it on social networks. also to Philippe Marcadent (ILO INWORK) and Markus Survey administration and data collection were carried out Pilgrim (ILO Budapest) for their support of the project. by two teams of qualitative and quantitative sociologists The authors of the report are particularly grateful to of Kiev International Institute of Sociology. Their high the surveys’ participants, who dedicated their time and quality work was key for producing this study. WORK ON DIGITAL LABOUR ii PLATFORMS IN UKRAINE: ISSUES AND POLICY PERSPECTIVES EXECUTIVE SUMMARY According to various sources, in 2013-2017, Ukraine platforms include those serving the Ukrainian occupied the first place in Europe, and the fourth market, but also those serving the post-Soviet, place in the world in terms of work on digital labour Russian-speaking markets, as well as international platforms, as measured by the amount of financial flows markets. Some workers also regularly find work and the number of tasks executed on such platforms. through online social networks. Ukraine also ranks first in the world in “IT freelance”. • Workers of online platforms are generally young It is estimated that at least 3% of the Ukrainian and have a high formal level of education. 26% workforce is involved in online work. Eighteen per cent of them consider online platforms as their main of Ukrainian white-collar office workers already tried source of income. Two thirds (67%) have worked digital work and would like to switch to it fully; one in primarily on one platform in the three months two view it as additional source of income. preceding the survey. Of those, 79% consider that How did this quiet revolution come about? Who are these they would be able to find alternative employment Ukraine-based digital workers? What are the conditions if the platform were to close. of their work? What consequences does digital work • The main reason why workers choose online work have for them, but also for the Ukrainian labour is to gain additional income. Other reasons include market and the society in general? What is the future preference to work from home, better pay on of these new modes of work? This report strives to the platforms as compared to the offline world, and answer these questions. It is based on two surveys, a inability to find work elsewhere. The main obstacles qualitative and a quantitative one, conducted by the Kiev for finding work in the offline economy include International Institute of Sociology (KIIS) on request of the general lack of jobs and low pay. the International Labour Office in September-December 2017. The surveys focused specifically on working • Nearly a third of respondents perform work exclusively conditions of online platform workers in Ukraine. Most for Ukrainian clients, while others work fully or partially of these workers refer to themselves as “freelancers”. for clients from abroad. 11% of freelancers have only They find work through digital labour platforms that is one main client. Those with several clients, on average, posted by clients from Ukraine and from other countries. work for 2 to 5 clients per month. The work can last from several minutes to several months; it • The most popular type of work performed through is not classified legally as an employment relationship. This online platforms is working with texts, particularly means that the working conditions of these “freelancers” copywriting (23%). The second place is occupied by remain outside the scope of labour regulation. IT (12%). The most popular IT fields of specialization The results of the survey show that digital labour platforms are website management and web programming. have transformed the modes of work and changed how • On average, freelancers spend about 30 hours per work is viewed by both businesses and workers. Such week on online work, which includes 22 hours transformations inevitably carry both a strong potential of paid work and 8 hours of unpaid activities. for benefitting the Ukrainian society, as well as risks. An At the same time, over 20% of workers work in understanding of such risks is important for designing excess of 48 hours a week – a percentage that is policy responses that can enhance the benefits of the work higher than in the total population. Online work is transformation brought about by the platforms. shifted toward evening time, and nearly one third of The following key findings emerge: freelancers work nights. • Online work is available to Ukrainian workers • The majority of respondents (80%) receive through over forty different platforms. These project-based pay, while 12% receive hourly pay, WORK ON DIGITAL LABOUR PLATFORMS IN UKRAINE: iii ISSUES AND POLICY PERSPECTIVES and 8% receive other type of pay including salary- that enables the client to track working time. Overall, like transfers. Those who reported their income it is estimated that nearly half of these online from online work earn monthly incomes that are, “freelancers” are in the grey zone of dependent or on average, slightly above the average gross wage disguised self-employment. in the country. However, since the gross average • 13% of the respondents perform tasks that are wage in formal, offline work includes social security posted online mainly by intermediaries, rather contributions, paid leave and payments in case of than direct users. Another 19% believe that tasks sickness, it cannot be said that online earnings are are posted by both intermediaries and direct users. superior to offline earnings. Workers who consider Intermediaries are often other “freelancers”, online work as their main activity, and especially
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