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Labour Standards in the Platform Economy | 1 Fairwork India Ratings 2020: Labour Standards in the Platform Economy 2 | Fairwork India Ratings 2020 Executive Summary As the scale and scope of work mediated by digital platforms has grown in India, so has the number of workers registering on such platforms. This rapid growth has also raised questions about the work conditions that result from digital mediation. As in other parts of the world, platform a cross-sectoral view of working after accounting for costs. Urban workers in India are predominantly conditions, and provides new entrants Company, Flipkart, Grofers, and paid a piece rate (i.e. per task), and are with a glimpse of what to expect from Ola were the exceptions. This typically classified by the platforms platform work. highlights the need for regulation as “independent contractors”, or and worker consultation on as driver / delivery “partners”. One This is the second year of scoring matters of pay. major concern is that such workers platforms using the Fairwork principles do not benefit from labour regulations in India. Last year, twelve platforms, � Workers have little to no social pertaining to wages, hours, working from sectors including ride-hailing, security. While some platforms conditions, and the right to collective e-commerce, food-delivery, and home provide accident insurance, bargaining. Consequently, there is an services, were scored. This year, eleven workers were unclear of the urgent need to examine the nature platforms were scored, with nine being procedures to make claims. of digitally-mediated work and its repeated from the first year. Data from Only two platforms (Urban effect on the livelihoods of millions of multiple sources indicates that, as of Company and Flipkart) were able workers in the country. February 2020, an estimated three to demonstrate that additional million workers were registered on the measures were taken to actively To this end, the Fairwork project eleven platforms scored this year (see improve working conditions. evaluates working conditions on digital Appendix III). platforms and scores them according � With the exception of Urban Company and Dunzo, there to five principles of ‘fair work’, Key Findings developed through multi-stakeholder was insufficient evidence meetings at UNCTAD, the International � The 2020 platform scores that accessible. readable and Labour Organisation, and in-country show the heterogeneity in comprehensible terms and stakeholder meetings in India, working conditions amongst conditions were available to Germany, and South Africa. The five platforms, corresponding to workers. With a growing reliance principles are Fair Pay, Fair Conditions, the policies and management by some platforms on labour Fair Contracts, Fair Management, and practices that platforms have recruited from subcontractors, Fair Representation. Evidence for in place. Urban Company, a workers were often unclear who compliance with these five principles home services platform, tops was responsible for their working is collected through desk research, the list of platforms studied this conditions and for the payment of worker interviews, and interviews with year, followed by Flipkart, an wages. platform management. The evidence e-commerce platform. Interviews Platform companies fared better is used to assign a “fairwork” score to with managers on both platforms � when it came to the principle individual platforms. With a basic and revealed that the Fairwork of Fair Management. There an advanced point awarded for each of process had provided them was sufficient evidence that the five principles, a platform can earn with new perspectives from the eight of the eleven platforms a maximum score of ten. workers’ point of view - enabling provided due process for workers them to reflect on their policies. The Fairwork project aims to study through a channel for workers work conditions on platforms on an � While the potential of high to communicate and appeal annual basis, with its scores offering wages and short payout cycles disciplinary decisions including an independent perspective on work continues to draw workers deactivations. Only Urban conditions for policy makers, platform to platform work, there was Company and Flipkart were companies, workers, and ethically- insufficient evidence that workers awarded the advanced point. minded consumers. In particular, on seven of the eleven platforms Urban Company was awarded it offers existing platform workers earned the minimum wage rate the point for actively blocking Labour Standards in the Platform Economy | 3 customers who discriminate companies fared poorly when precarious livelihoods of all against service providers. Flipkart it came to acknowledging a workers (platform or otherwise), was awarded the point for its collective voice for workers. this report shows that the proactive initiatives to employ However, no platform was pandemic has only exacerbated women and physically-disabled agreeable to negotiating with a precarity already endemic to persons in its last-mile workforce. worker associations and unions. platform work. � With the exception of Urban � While the COVID-19 pandemic Company and Flipkart, platform has brought to prominence the Fairwork India 2020 Scores* Urban Company 8 Flipkart (Ekart) 7 Dunzo 4 Grofers 4 Amazon (ATS) 2 Bigbasket 2 Housejoy 2 Ola 2 Swiggy 1 Uber 1 Zomato 1 * Scores are out of 10. 4 | Fairwork India Ratings 2020 Editorial: Towards Fair Work Platforms connect “individuals and organisations so they can innovate or interact in ways not otherwise possible”.1 Digital platforms enable interaction by providing the infrastructure to mediate between actors who offer services and those who are looking for them.2 With their ability to lower the transaction costs of matching supply and demand, platforms are considered to have the potential to address the employment challenge in the Global South.3 This report will explore the extent to which that potential is being realised in India. This report examines a category A prominent issue with work on digital by healthy and safe working conditions. of platforms which offer “work on- platforms is employment status, as The other three focus on whether the demand via apps” in sectors such most workers are not classified as platform’s contract with the workers as domestic and personal care employees with income security and is fair; management processes and services, logistics, food delivery, and social protection. Rather, they are communication channels are clear and transportation. The report points usually classified as independent transparent; and platforms allow for out that the growth of the platform contractors. As a result of such the expression of worker voice through economy has undoubtedly offered classification, workers find themselves open worker representation. employment opportunities in a country in increasingly flexible labour markets where there is growing concern that where their survival has become The Fairwork India team is the number of workers seeking work precarious and vulnerable. Many lack spearheaded by the Centre for IT has far exceeded the number of jobs labour and income security, and work- and Public Policy (CITAPP) at the available. The section, Overview of the based identity, with little sense of a International Institute of Information Indian Platform Economy, discusses future in what they are doing.5 Technology Bangalore (IIITB), along the factors that have led to such with partners at the University growth. This report presents the findings of of Oxford and the University of a study conducted by the Fairwork Manchester. The partners at Oxford Although digital platforms offer India team on how platform work include legal experts who look at employment opportunities, it is far is perceived and experienced by potential government-level policy from clear whether the work offered workers on these platforms. The actions and regulatory interventions qualifies as what the International Fairwork project focuses on five core to better protect platform workers. Labour Organisation calls decent work, principles of fair platform work: Fair The team assessed evidence against or “work that is productive; ensures Pay, Fair Conditions, Fair Contracts, Fair each of the Fairwork principles through equality of opportunity and treatment Management, and Fair Representation. a combination of desk research and for all women and men; delivers a fair Scores are awarded out of ten to worker interviews conducted in income, security in the workplace and a platform based on whether they Bangalore6 and, where possible, from social protection for families; provides meet the basic standard (one point) evidence provided by the platforms. prospects for personal development; and achieve a higher standard (an Given the often opaque and fast and gives workers the freedom to additional point) for each of these five changing nature of the platform express their concerns, organise and principles. The first two principles ask economy, reliable data is difficult to participate in decisions that affect their if workers receive fair pay for their come by. Thus, a point is awarded working lives.”4 work, and if their jobs are characterised only when there is evidence that the Labour Standards in the Platform Economy | 5 platform fulfils the conditions. Being a team of researchers with no affiliation with workers, platforms or government, our scores provide an independent Contents assessment of platforms. This is the second year of rating

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