Fairwork Ratings 2021: Labour Standards in the Gig Economy 2 | Fairwork Ecuador Ratings 2021

Executive Summary Latin America has been at the centre of recent debates about the precarious and unfair conditions of workers in the platform economy. The Faiwork project is now present in four Latin American countries - , Colombia, Ecuador and . This report on Ecuador presents the first set of Fairwork ratings for the region. Six of the most prominent platforms in the country – Uber, Cabify, Glovo, , Encargos y Envíos, and Ocre – were evaluated against the five global principles of Fairwork.

The Ecuadorian economy is marked by exploitative working conditions. The organise multiple transnational a lack of infrastructure, a low-skilled situation of these workers was further actions in 2020, demanding better labour force, and an unequal social afflicted by an increase in labour and working conditions and employee structure. Although a relatively new health risks associated with the COVID status. These movements and phenomenon, the gig economy has 19 pandemic. With the rise in demand networks of solidarity represent a gained increased momentum over the for delivery services during this period, counterbalance to platform power, last four years, with both local and they became essential workers. pushing for collective negotiations not international platforms competing in However, the support received from just locally but also globally. However, the market. This trend was driven by platforms and the government has gig workers’ associations in Ecuador the growth in internet connectivity and been insufficient to protect gig workers face significant limitations as they are a large informal economy. Platforms from the pandemic. not recognised as unions by the law. operate in a regulatory vacuum, Furthermore, platforms have so far offering easy access to jobs to the Both local and international platforms failed to acknowledge and listen to the unemployed and migrant population, operate in grey zones regarding collective voice of workers. but at the risk of exploitative and taxation and labour conditions. Gig precarious working conditions. workers in Ecuador are classified as Overall, our ratings reflect that there is independent contractors. As such, much to be done to ensure fairness in While there are no reliable statistics, platforms are not legally obliged to Ecuador’s emerging platform economy. this report estimates that the platform protect them as they are not regarded In a context of insufficient local economy employed 40,000 workers as employees. Platform workers are regulation, coordinated international nationwide, representing about also not covered by social security action and incentives are needed 1 percent of the underemployed benefits unless they voluntarily to offset the unbalanced power of population. With many losing their job contribute from their earnings. transnational platforms. A prominent during the pandemic, we expect the Platforms exercise substantial example of this can be found in the numbers to have increased. control over many aspects of the growing organising power of gig labour process and, therefore, have workers’ movements in the region. The gig economy model poses several an obligation towards their workers. challenges to developing countries Workers who find their jobs through This report is the result of a one-year such as Ecuador, which struggle platforms are ultimately still workers, pilot project in Ecuador. It establishes to catch up with the technological and there is no basis for denying them a baseline on the current situation of infrastructure and regulatory the key rights and protections that their the country’s platform economy that framework needed to deal with these counterparts in the formal sector enjoy. will be updated on a yearly basis. By new industries. raising awareness of the conditions Fuelled by the worsening conditions of gig workers in Ecuador and across This report highlights how platform during the pandemic, gig workers in Latin America, Fairwork aims to assist workers in Ecuador face many Ecuador, Brazil, Chile, and other Latin workers, consumers and regulators in difficulties, including the absence of American countries initiated the first making platforms accountable for their labour rights, volatile incomes, lack international gig workers’ movement. practices. of social benefits, and precarious and These workers joined together to 2

Labour Standards in the Platform Economy | 3

Fair Conditions: Only one of the Fair Management: No platform Key Findings � � six platforms could be evidenced could be shown to allow due � The ratings achieved by the to have adopted policies to process for decisions affecting platforms operating in Ecuador protect workers from risks workers. Often workers do are very low, with no platform arising from their work. There not have the ability to appeal scoring more than three points was no evidence of platforms deactivations or request out of ten. Glovo, Encargos y implementing measures to information on why these Envíos, and Ocre scored three actively improve working happened. points, Uber and Cabify scored conditions beyond mitigating Fair Representation: There was two points, and Rappi scored one. task-specific risks. � no evidence of any platform � Fair Pay: Across platforms, � Fair Contracts: Two platforms having a documented process gig workers need to work the provided terms and conditions through which workers can equivalent of a full-time job to in a clear, transparent and express their voices collectively. earn over the legal minimum accessible form. Most platforms None of the platforms was found wage in Ecuador, which is offer contracts governed by to have recognised workers’ relatively low. However, once overseas jurisdictions, limiting organisations or be willing to work-related costs are factored workers’ ability to assert their acknowledge workers’ collective in, only two platforms could prove rights through local legal voice, leaving them without that their workers earn minimum channels. institutional channels for wage. representation.

Fairwork Ecuador 2021 Scores*

Encargos y envíos 3

Glovo 3 3

Ocre 3

Cabify 2

Uber 2

Rappi 1

* Scores are out of 10. 4 | Fairwork Ecuador Ratings 2021

Editorial: Towards Fair Work

As the new techno-economic revolution driven by data and automation spreads across industries and countries, new forms of management and organisation of work have begun to emerge. The so-called “platform” or “gig” economy has gained momentum in recent years, but new forms of organisation have also introduced new forms of exploitation and risk for workers.

The adoption of new technologies platforms accountable for their concern whether workers receive fair varies from country to country, as practices. pay for their work and if their jobs does their impact on the economy and are characterised by healthy and society. Countries with a long history The Fairwork project has already made safe working conditions. The other of industrial and labour organisation evaluations of the platform economy in three focus on whether the platform and strong social rights face different India, South , and Germany. The has engaged in a fair contractual problems in dealing with new forms of CTS LAB of the Latin American Faculty agreement with the workers, whether economic and labour organisation than of Social Sciences FLACSO Ecuador there are clear and transparent those with a weak industrial relations joined the Fairwork network in 2020, management processes and tradition, limited regulation, and high and developed this first evaluation of communication channels, and whether labour market informality. However, in the platform economy in Ecuador in workers can express themselves both cases, the side effects of this new collaboration with the Oxford Internet collectively through open worker economy have triggered reactions from Institute (OII) at the University of representation. those directly affected by worsening Oxford, the Center for IT and National working conditions and increasing Development (CITANDA) at the We assessed evidence against each exploitation. University of Cape Town (UCT), the of these Fairwork principles through Technical University of Berlin (TUB), a combination of desk research, Indeed, the last year has seen the and other academic institutions from worker interviews in Quito, and semi- emergence of a global gig workers’ more than twenty countries. structured interviews with platform movement that has managed to managers. The novelty and complexity organise a number of international This report presents the results of a of the platform economy make it actions, demanding better working first evaluation of five core principles difficult to obtain reliable information conditions in international delivery of fair platform work (Fair Pay, Fair about it. We, therefore, only award a platforms. The movement originated Conditions, Fair Contracts, Fair point when there is clear and sufficient with gig workers from Ecuador, Brazil, Management, and Fair Representation) evidence in support of a principle. Chile, among other Latin American for a sample of six of the most visible We guarantee the independence and countries, who have been significantly platforms operating in Ecuador: impartiality of the scoring process affected by an increase in labour Uber, Cabify, Glovo, Rappi, Encargos through a rigorous internal review of and health risks associated with the y Envíos, and Ocre. In the report, we every score we award. COVID-19 pandemic. Since 2019, the evaluate each principle in two steps. Fairwork project has been trying to We award scores out of ten to a We found evidence that the majority raise awareness of the precarious and platform based on whether they meet of workers on these platforms unfair conditions faced by platform a minimum threshold (one point) and receive an average monthly income workers in their everyday lives. In then achieve a higher threshold (one slightly higher than the minimum doing so, we aim to assist workers, additional point) for each of these five legal monthly wage. However, this consumers and regulators to make principles. The first two principles average hides a few practices that Labour Standards in the Platform Economy | 5

should not be neglected, such as the existence of a black market of worker accounts, and other subcontracting practices that reduce workers’ annual Contents incomes. Unfortunately, in most of these platforms, we found little or no evidence of risk and health coverage; clear, transparent, and locally applicable contracts; fair and 02 Executive Summary transparent management; and the right to be heard and represented collectively. 04 Editorial The economic turmoil triggered by the COVID-19 pandemic in countries The Fairwork Framework like Ecuador will have long-lasting 06 consequences for social conditions. Poverty and inequality will rise further, Overview of the Ecuadorian Platform and informality will continue to shadow 08 Economy labour relations and access to work and income. In such a context, coordinated international action and incentives are 11 The Legal Context needed to offset the lack of effective regulation of platforms’ unbridled power. The Fairwork framework offers 12 Fairwork Scores to workers, consumers, regulators and companies a way to create such incentives to build a fairer platform Platform in Focus: Glovo economy. 14 15 Workers’ Stories Theme in Focus: The Rise of an 17 International Gig Workers’ Movement? 19 Impact and Next Steps 22 Appendix I: Fairwork Scoring System 26 Credits and Funding 27 Endnotes Prof María Belén Albornoz CTS LAB, Latin American Faculty of Social Sciences, Ecuador

Prof Henry Chávez CTS LAB, Latin American Faculty of Social Sciences Ecuador 6 | Fairwork Ecuador Ratings 2021

The five 01 principles Fair Pay Workers, irrespective of their employment classification, should earn the mandated minimum wage in their home jurisdiction after taking account of work-related costs.

Fair Conditions Platforms should have policies in place to protect workers from risks arising from the processes of work, and should take proactive measures to protect and promote the health and safety of workers. The Fair Contracts Terms and conditions should be accessible, readble and comprehensible. The party contracting Fairwork with the worker must be subject to local law and must be identified in the contract. If workers are genuinely self- employed, the terms of service must Framework be free of clauses which unreasonably exclude liability on the part of the The Fairwork project evaluates platform. the working conditions of digital Fair Management platforms and ranks them on how There should be a documented process through which workers can be heard, well they do. Ultimately, our goal can appeal decisions affecting them, and be informed of the reasons behind is to show that better, and fairer those decisions. There must be a clear channel of communication to jobs are possible in the platform workers involving the ability to appeal economy. management decisions or deactivation. The use of algorithms must be transparent and result in equitable To do this, we use Fairwork’s five principles that digital platforms outcomes for workers. There should should comply with in order to be considered to be offering ‘fair be an identifiable and documented work’. We score platforms against these principles to show what policy to ensure equity in management the platform economy is, and what it could be. The five Fairwork of workers on a platform (for example, principles were developed in multistakeholder workshops at in the hiring, disciplining, or firing of the International Labour Organisation. To ensure that these workers). global principles were applicable in the Ecuadorian context, we then revised and fine-tuned the criteria for measuring these in consultation with platforms, trade unions, regulators, academics, Fair Representation Platforms should provide a documented and labour lawyers in Quito. process through which worker voice Further details on each principle’s thresholds, and the criteria can be expressed. Irrespective of their used to assess the collected evidence to score platforms, can employment classification, workers be found in Appendix I. should have the right to organise in collective bodies, and platforms should be prepared to cooperate and negotiate with them. Labour Standards in the Platform Economy | 7

Methodology 02 The Fairwork project uses three approaches to effectively measure fairness at work. Desk Research The process starts with desk research to ascertain which platforms are for a sample of 6-10 workers operating in each city, as well as interviews for each platform. noting the largest and most influential Workers are approached either ones. This research provides the through the platform directly or overall range of the platforms that are at known worker meeting points. ranked, as well as identifying points These interviews do not aim to build a of contact or ways to access workers. representative sample. They instead Desk research also flags any public seek to understand the process of information that could be used to work and the ways it is carried out score particular platforms, for instance and managed. They allow us, for the provision of particular services to instance, to see contracts and learn workers, or ongoing disputes. about platform policies that pertain to workers. The interviews also allow the Platform Interviews team to confirm or refute that policies How we The second method involves or practices are really in place on the score approaching platforms for evidence. platform. 03 We interview platform managers Each Fairwork principle is broken and request evidence for each of the down into two points: a basic point Fairwork principles. This provides Putting it all together and a more advanced point that can insights into the operation and This threefold approach provides a only be awarded if the basic point business model of the platform, while way to cross-check the claims made has been fulfilled. Every platform also opens a dialogue through which by platforms, while also providing receives a score out of 10. Platforms the platform could agree to implement the opportunity to collect evidence are only given a point when they changes based on the principles. In from multiple sources. Final scores can satisfactorily demonstrate their cases where platform managers do not are collectively decided by the implementation of the principles. agree to be interviewed, we limit our Fairwork team based on all three scoring strategy to evidence obtained forms of evidence. The scores are Failing to achieve a point does not through desk research and worker peer-reviewed by the country team, necessarily mean that a platform interviews. the Oxford team, and two reviewers does not comply with the principle in from other Fairwork country teams. question; it simply means that we were This provides consistency and rigour unable to evidence its compliance. Worker Interviews to the scoring process. Points are only The third method is interviewing awarded if clear evidence exists for See Appendix I for further details on platform workers directly. We aim each threshold. the Fairwork scoring system. 8 | Fairwork Ecuador Ratings 2021

Overview of the Ecuadorian Platform Economy

The Ecuadorian economy is highly dependent on extractive activities and commodities1. The high volatility of prices in the production system has affected the country’s economic cycles and undermined the development of other capital-intensive industries. This has resulted in a lack of infrastructure, a low-skilled labour force, and an unequal social structure. Unemployment and informal employment are widespread. This fact and the lack of appropriate regulation have created the conditions for a proliferation of gig economy platforms offering easy access to jobs and income, but at the risk of exploitation and worsening working conditions.

The platform economy is a relatively 83 percent between 2019 and 2020, new phenomenon in Ecuador. Most More connectivity but to reach 24 Mbps2. However, most international digital platforms with limitations of these connections are limited to operating in the country, such as accessing Facebook and its services, Cabify, Uber, and Glovo, started Despite its infrastructural deficit and such as WhatsApp and Instagram. This operations within the last four years. socio-economic inequalities, Ecuador is because Ecuador’s mobile market Local platforms, like Mynkana, Ocre has experienced a growing internet hides monopolistic practices, such as App, Encargos y Envíos, and Kiárame penetration in recent years. By 2020, pre-paid plans with free and unlimited have emerged within the past two about 89 percent of the population of access to these and other selected years. All of them have registered a 17 million had a mobile phone, and 69 services but paid access to the rest of growing number of users and workers percent had access to the internet and the internet. This has created a new during this short period, which can be social media (6.8 percent more than divide between those who can afford explained by a number of structural in 2019). Moreover, the average speed a standard open internet connection factors. of internet connections increased by and those whose connectivity is limited Labour Standards in the Platform Economy | 9

Myriam B / Shutterstock.com to free services (74 percent of mobile Ecuadorian economy, they worsened their vulnerable condition10. In such connections are pre-paid). as a result of the economic recession a situation, new digital platforms, that started in 2015 due to a drop in oil with little if any entry barrier, appear Related to these limitations, various prices. to many as an easy, if not the only financial inclusion factors have created available source of income11. In an even more restricted market for This shock reduced public revenues, sum, the convergence of the arrival these kinds of online activities: only 55 and therefore the government’s of these platforms to Ecuador with percent of the population have banking ability to maintain public spending. services, 9 percent have a credit card, This led to the dismissal of many and about 10 percent use online public employees and an increase payments3. These numbers reflect the in the under-employed population limitations of the local financial system -which already accounted for 49 for the new economy. percent of the workforce before the crisis8. This deterioration of the labour These and other institutional factors, market mainly affected the middle 4 “We estimate the such as a lack of regulation and class, whose consumption is mostly cultural issues like the general mistrust sustained by credit. Hence, in the face platform market 5 of online payments , have slowed the of a shrinking labour market and being expansion of users and workers of the compelled to pay their debts in order before the pandemic platform economy. to preserve their assets, many of these comprised around former employees have turned to gig Crisis, unemployment, economy jobs offered by platforms like 1.5 million users and Uber. and migration a gig labour force Finally, it is essential to highlight As in many low and middle-income that Ecuador has received more of around 40,000 countries, Ecuador has a highly than 630,000 immigrants over informal economy. By the end of 2019, the last decade, many fleeing the workers nationwide. only 38 percent of the economically challenging situation in Colombia active population of 8 million had a This represents and Venezuela9. Few of these people regular job6. About 4 percent were have found opportunities in Ecuador’s unemployed and the remaining 58 about 1 percent of shrinking labour market, and many percent had unpaid, underpaid or have fallen into unemployment or the underemployed part-time work7. Even if these numbers underemployment, being exposed reflect a long-term feature of the to exploitation and abuse because of population.” 10 | Fairwork Ecuador Ratings 2021

the economic recession, the rise of underemployed population13. developing countries such as Ecuador. unemployment and underemployment, Barely prepared for the techno- and a growing immigrant population Given that the current pandemic economic transformations introduced looking for work opportunities, have restrictions have obliged many to turn by the automation of the economy, fuelled a growth in the number of to mobile apps to provide themselves these countries struggle not only workers who are willing to accept any with food and other essentials, and has to catch up with the technological labour conditions in exchange for a pushed many others to engage in these infrastructure and capacities needed relatively easy source of income. activities as the only available source of to deal with these new industries, income, it is reasonable to expect the but especially with the lack of The gig economy in number of both users and workers to regulation and institutional tools to have increased in consequence. frame and manage the development Ecuador: how big and of these activities and their social Regarding these platforms’ working and economic side effects. In such a how fair? conditions, from the evidence collected context, companies can operate in grey for this report, we could evidence As a new phenomenon, Ecuador’s gig zones regarding taxation and labour that most workers earn more than the economy is still an under-researched conditions14. Historically characterised legal minimum hourly wage before area, and we cannot count on reliable by a low level of enforcement of costs (fuel, repairs, etc.). However, in and up-to-date statistics on the local regulations, the governments in most of the platforms we evaluated, number of users, workers, sales, and countries like Ecuador need external other fair working conditions are still costs. To build such indicators is one incentives, such as international lacking, including risk and health of the main challenges for economic observance and cooperation, to coverage; clear, transparent and analysts in the coming years. develop such instruments and locally applicable contracts; fair and capacities. Nonetheless, based on data gathered transparent management; and the from public declarations, media right to be heard and represented Even locally-owned platforms prefer to reports, and the interviews conducted collectively. We will discuss each of operate from foreign countries to avoid for this report, we estimate that the these points later in this report. financial, labour, and taxation obstacles platform market before the pandemic in Ecuador. This increases the risk of comprised around 1.5 million users Challenges abuse of workers, and prevents any and a gig labour force of around 40,000 regulation that considers local needs workers nationwide12. This labour force The gig economy raises a number and expectations. represents about 1 percent of the of specific issues and challenges in

Myriam B / Shutterstock.com Labour Standards in the Platform Economy | 11

The Legal Context What Makes a Worker an Employee?

In Ecuador, all digital platforms classify workers as independent contractors, and have designed a legal path to circumvent labour law by using contracts covered by civil law. This legal situation creates a scenario that allows platforms to avoid recognising worker’s employment rights. It is important that we analyse the working conditions offered by digital platforms in order to develop new forms of regulation and reform policies to protect workers.

Gig workers face a difficult situation employers to reach mutual agreements with full social benefits. in relation to labour rights, volatile to change economic conditions, reduce income, a lack of social benefits, working hours, and create temporary In the meantime, delivery workers and precarious and exploitative emergency contracts, in order to avoid have joined three international and two working conditions. According to further layoffs during the pandemic. national strikes to protest against the platforms, workers are independent However, the Act did not consider harsh working conditions they have had 19 entrepreneurs who manage their autonomous workers. to endure during the pandemic and to own time and have no boss. This way, fight for real worker autonomy and the platforms are detached from any In October 2020, the Ministry of Labour right to be rehired as employees. employment relationship. designed new employment contracts: (i) young workers employment Platforms often exercise control over However, most gig workers do not have contracts (ages 18 to 26)16; (ii) many aspects of the labour process the freedom to decline work whenever entrepreneurship contracts 17; and (iii) but also often refrain from assuming they want, because they are under productive sector special contracts18. obligations towards workers. In strict control by platforms over their All these new contracts are governed this context, regulating platforms schedules, routes, and prices. When under two working modalities: in Ecuador presents a significant they choose to exercise such freedom, continuous and discontinuous. Hourly challenge: on the one hand, the State, they become subject to disciplinary or daily pay can be stipulated if the which has hitherto indirectly supported actions such as account deactivation, work is discontinuous – for instance the precariousness of labour; on the lower ratings, and less work allocation. events-based, periodic or seasonal. other hand, gig worker associations, Payment is by months or weeks if which face legal limitations as they are Since gig workers are not considered there is a fixed-term employment not recognised as unions by law. employees, they are only covered relationship. In both cases, social by social security benefits if they security contributions and other voluntarily contribute from their own legal benefits are paid based on the 15 earnings . hours worked and the remuneration agreed with the worker. These new In the context of the COVID-19 employment contracts may incentivise pandemic, the Humanitarian Support platforms to change working terms and Act was approved by the Ecuadorian conditions into new contracts where National Assembly in May 2020. This workers are considered employees labour reform allows workers and 12 | Fairwork Ecuador Ratings 2021

Fairwork Scores

Score (out of 10)*

Encargos y envíos 3

Glovo 3

Ocre 3

Cabify 2

Uber 2

Rappi 1

* The breakdown of scores for individual platforms can be seen at: www.fair.work/ratings Labour Standards in the Platform Economy | 13

platforms are incentivised not to affecting workers. Workers are protect workers in order not to give very concerned that low ratings, the appearance of an employment and performance falling below relationship and therefore not to be the algorithms’ standards can legally obliged to give them other lead to temporary suspension and Fair Pay benefits as employees. deactivation. We found that workers do not have the ability to appeal The relatively low minimum wage in deactivations, or even understand Ecuador (which is set at 400 USD a why they happened. This is why the month) means that we could evidence Fairwork scoring system stipulates gig workers who worked the equivalent that platforms must document the of a full-time job20 to receive more than policies for disciplinary actions this threshold. However, once work- Fair Contracts and deactivation in their terms and related costs are factored in, we found conditions, alongside a transparent evidence from only two platforms All Ecuadorian platforms provide process for workers to appeal that workers take home more than documented terms and conditions decisions. We found no evidence that the local minimum wage. Since 2019, which workers must sign in order to any of the platforms evaluated have some platforms have changed their work on the platform. However, many active anti-discrimination policies. algorithm, reducing the pay by the workers find these contracts difficult to mileage and treating group orders as understand and are not fully aware of a single order, resulting in workers their rights and obligations. We found earning less than before. only two platforms providing terms and conditions in a clear, transparent and accessible form. Moreover, it has to be highlighted that many of the contracts Fair Representation given to workers were governed by overseas jurisdictions, limiting We could not show any platform to workers’ ability to assert their rights have a documented process through Fair Conditions through local legal channels. which workers can express their voice collectively. There was insufficient Only one out of six platforms could be evidence that any platform currently evidenced to have adopted policies recognises or is willing to recognise to protect workers from risks arising worker organisations and collective from their work. There is no evidence voice of workers. Overall, none of that any platform is implementing the platforms showed an interest in measures to actively improve working acknowledging worker collectivisation, conditions beyond mitigating task- Fair Management which leaves most Ecuadorian platform workers without institutional channels specific risks. This may be primarily No platform could be shown to for worker representation. due to workers being classified as incorporate management processes independent contractors. As such, allowing for due process for decisions

Myriam B / Shutterstock.com 14 | Fairwork Ecuador Ratings 2021

Platform in Focus: Glovo Total

Principle 1: Pays at least the local Pays the local minimum 1 minimum wage wage plus costs POINT Fair Pay

Principle 2: Actively improves working Mitigates task-specific risks 1 conditions POINT Fair Conditions

The contract genuinely Principle 3: Clear terms and conditions reflects the nature of the 1 are available POINT Fair Contracts employment relationship

Principle 4: Fair Provides due process for There is equity in the 0 decisions affecting workers management process POINTS Management

There is a collective body of Includes freedom of Principle 5: Fair workers that is recognised, and association and worker 0 that can undertake collective POINTS Representation voice mechanism representation/bargaining

Glovo’s overall score 03

The ratings achieved by the platforms According to data provided by Glovo, Despite some positive steps, operating in Ecuador are very low, with the vast majority of their workers the platform has yet to design a no platform scoring above three out of earn above the Ecuadorian minimum transparent policy tool for disciplinary ten. Only three platforms scored three wage with hourly earnings of 3.6 actions, which can be easily accessed points (Glovo, Encargos y Envíos, and USD21. However, pay conditions have by workers. Workers therefore lack Ocre), two scored two points (Uber changed over the past year. According a transparent process to appeal and Cabify), and one scored a single to Glovo workers we interviewed, the decisions. Workers’ demands are still point (Rappi). Among the platforms new algorithm used by the platform resolved on an individual basis, and that achieved three points is Glovo, reduced the fee of each delivery from collective bargaining mechanisms have an international platform operating 1.00 US to 0.30 USD. Workers are also not been developed. The series of in Ecuador since 2018, and one of now forced to make group deliveries international gig workers’ protests in the leading delivery platforms in the but only paid for one. The new fee Latin America reveals the need of such country. per kilometre is 0.25 USD when the collective mechanism because of the platform charges the client 0.80 USD. lack of communication channels and Since 2019, Glovo has founded a new Many “Glovers” are demanding to willingness of this and other platforms company in Ecuador so that contracts return to the 2019 payment rules. to process and address workers’ signed by workers are governed by demands for better working conditions. Ecuadorian law and not by Spanish As part of co-responsibility for law. This critical change in contract workers’ health and safety, Glovo arrangements allows workers to appeal provides training in partnership with to local law in case of legal disputes, agencies like the Metropolitan Transit which improves the mediation of their Agency (MTA) to strengthen workers’ claims. knowledge of rules, and to foster sound practices and road safety culture. Labour Standards in the Platform Economy | 15

Workers’ Stories

Lucía* arrived in Ecuador from Venezuela transit agents to admonish Uber’s drivers, who three years ago and shortly thereafter started are forced to pay a fee of 750 USD if they are working for Uber, thanks to her network stopped by the police. In addition to the fact of friends. This platform offered her a job that she is required to pay 40 percent of her Lucía opportunity that was difficult to find anywhere income to the car owner, Lucia must work more Uber Driver else, although she had to rent a car in order than ten hours a day to earn about 400 USD net to start working. Nevertheless, her migrant a month. status soon presented her with a series of barriers that began to make her working Being a woman and a foreigner, she is conditions precarious. Not having a work visa, subjected to many acts of discrimination by she was subcontracted by the owner of the customers, who cancel their orders when it car she drives, so she does not have a direct is evident that the car’s driver is a woman. To relationship with Uber, and she has not signed avoid personal safety risks, she has chosen to a contract with the platform. work during the day’s peak hours and avoid driving at night. In this context, it has been “There is a very large black market of accounts essential to be part of a WhatsApp chat in and profiles on all platforms. I found out that which she can learn about the city’s police the owner of the vehicle I now drive was controls, ask for help if she feels in danger, and looking for a driver and I contacted him thanks share information on improving her working to some friends who knew him. I am lucky conditions. The irregular conditions prevent her because I don’t pay him 50% of my income. from thinking about joining a platform workers’ Many other acquaintances have to pay more union. She only hopes to obtain a work visa that than me to be able to work.” will allow her to improve her income.

This situation places her in a vulnerable position before the police, since Uber’s legal *Names changed status in Ecuador is still being negotiated. She to protect worker must face the continual raids carried out by the identity

TheBlackFarm Road Provides / Shutterstock.com/ Shutterstock.com 16 | Fairwork Ecuador Ratings 2021

Alex Torrenegra / Flickr

Rafael* has worked in the public sector for over the platforms’ emergency support centre. He 20 years. In 2017, he was fired from his job said to be grateful to have the opportunity to at a government agency. For several months, work and earn money, but he does not feel he could not get a new job and decided to use that the platform really cares about his safety, Rafael his car to earn some money. Now his primary and it’s not improving his precarious working Uber/Cabify job is divided between Cabify and Uber. He conditions. Furthermore, the scoring and had a hard time understanding how the two performance mechanisms of the platform push Driver platforms work, what the best paid hours are, him to work long hours without been rewarded how to get more passengers and how to reduce with social benefits, freedom and security spending on gas and car parts. He now works measures. from 3am to 10am, rests for a few hours and then returns to work for the afternoon rush hour. He earns 1,200 USD a month and gets a break on the weekends.

Although he does not receive the same salary as when he worked for the government, he manages to support his family and owns his own time. This job has taught him other aspects of the city that were unknown to him and he shares his knowledge with other friends through WhatsApp. Being connected is the key to avoiding many risks in his job, given the limited support he receives from the platforms. In the case of an accident, he feels more protected by his colleagues, who *Names changed have immediately come to his aid, rather than to protect worker identity Labour Standards in the Platform Economy | 17

Theme in Focus: The Rise of an International Gig Workers’ Movement? The COVID-19 pandemic has caused death, suffering, and chaos around the world. It has unveiled the structural problems of an unsustainable and unequal global system and the limits of country-centred frameworks of analysis, regulation, governance, and action. It seems clear that many of the problems faced by nations due to the pandemic result from global trends that need to be addressed globally.

Governments and regulators are slow gig workers to find common channels to implement change. This is not the to discuss, organise themselves, and case for transnational actors such undertake collective actions to demand as gig platforms, which can operate better working conditions.23 globally under different regulatory “Despite the systems but with the same business This is exactly what has happened models.22 These transnational actors in Ecuador and other Latin American isolation imposed concentrate power and capital through countries during the global lockdown on workers by the their global value chains, giving them due to COVID-19. The increased a relative advantage over local actors demand for delivery services during very design of these and states themselves. Hence, by this period highlighted this labour the time a local regulation or policy is force’s social and economic relevance, platforms, social implemented, it will be very likely that as many platform workers have platforms have already updated their become essential in this “new normal”. media (...) have model to avoid it. However, the pandemic has also enabled gig workers Nonetheless, thanks to the very same revealed the worsening labour to find common technologies that have enabled the conditions of gig workers, the lack of rise and proliferation of gig economy social benefits and even occupational channels to discuss, platforms around the world, many local safety, not to mention the significant actors can organise and communicate health risks to which they are exposed. organise themselves their problems and complaints about Social networks have allowed many this new labour regime on a global workers to report and share their and conduct scale. Despite the isolation imposed complaints about platforms during collective actions on workers by these platforms’ very the pandemic. This creates awareness design, social media and mobile among workers in other parts of the to claim for better communication services have enabled world about the common issues they face, and the need to act collectively at working conditions” 18 | Fairwork Ecuador Ratings 2021

Isadora Romero, National Geographic (August 2020)24

a local and global scale. of collective deliveries that made them work more for less money. They This collective awareness has led to the also asked for platforms to provide organisation of several international accident and health insurance, strikes against the deteriorating personal protective equipment during working conditions on delivery the pandemic, the reclassification of platforms, and the emergence of the their status as employees, and the first forms of association and collective improvement of working conditions. organisation of gig workers, not only locally but internationally.25 In the absence of a more dynamic and coordinated response from national In Ecuador, several groups of gig governments, this coordinated workers started to self-organise international action can have a positive through WhatsApp groups, creating impact by creating incentives for the the basis of a collective organisation. platforms to behave in a more socially They participated in four cross- responsible manner. platform strikes, three of which were coordinated internationally with This is precisely one of the Fairwork other workers’ collectives from Latin project’s objectives: to introduce America (, , , incentives through global action for , Mexico, Brazil) and . better regulation of the platform ecosystem.26 These strikes brought together gig workers from Glovo, , Rappi and a number of other platforms. They protested a reduction in the pay rate they receive for each “gig” and the imposition of a new system Labour Standards in the Platform Economy | 19

Impact and Next Steps

Our first and most direct pathway to

This report is the result of a one-year pilot improving working conditions in the platform economy is by engaging project in Ecuador. We have established directly with Ecuador’s platforms. Many a baseline on the current situation of the platforms are aware of the importance of regulating mechanisms such as the country’s platform economy that will let Fairwork framework to enhance the us study its development and update our platform ecosystem. They are eager to work with us to ratings on an annual basis. As Fairwork’s improve their Fairwork scores. Guided by our principles, the platforms can reach and visibility increases, we see four easily focus on the conditions that avenues for contributing to improvements need to be enhanced to provide better job and income opportunities in the conditions faced by Ecuadorian for their workers, while maintaining a growing, safer, and fairer business. platform workers. Fairwork Ecuador has started to raise awareness among platforms about these principles and succeeded in establishing a collaboration channel with some platforms to get first-hand information about their practices and policies.

Fairwork’s theory of change also draws on the understanding that human empathy is a powerful force. Given enough information, many consumers will be intentional about the platforms they choose to interact with. Our yearly ratings give consumers the ability to select the highest scoring platform operating in a sector, thus contributing to pressure on platforms to improve their working conditions and their scores. In this way, we enable consumers to ally with workers to fight for a fairer gig economy.

Beyond individual consumer choices, our scores can help inform larger organisational customers’ procurement, investment, and partnership policies. They can serve as a reference for institutions and companies who want to support fair labour practices and more ethical procurement. Fairwork’s Pathways to Change 20 | Fairwork Ecuador Ratings 2021

Fairwork’s Principles: Continuous Worker-guided Evolution Fairwork Principles

Changes to Principles

(agreed at annual Fairwork symposium that brings together all country teams)

Periodic International Annual Country-level Yearly Fieldwork Stakeholder Stakeholder across Fairwork Consultations Consultations Countries

(involving gig workers’, workers’ (involving gig workers’, workers’ (involving surveys and in-depth organisations, cooperatives, etc) organisations, cooperatives, etc) interviews of gig workers)

Ongoing Advocacy Efforts

(involving campaigns for worker rights and support to workers’ organisations)

We also engage with policymakers involving workers, informs how we Our principles can provide a starting and the government to advocate for systematically evolve the Fairwork point for envisioning a fairer future of extending appropriate legal protections principles to remain in line with their work, and set out a pathway to realise to all platform workers, irrespective needs. Through continual engagement it. Principle five, in particular, on the of their legal classification. We will with workers’ representatives importance of fair representation, is a continue our policy advocacy efforts and advocates, we aim to support crucial way in which we aim to support in the coming years to help ensure workers in asserting their rights and workers to assert their collective that workers’ needs and platforms’ requirements in a collective way. agency. business imperatives are effectively balanced. A key challenge in the gig economy There is nothing inevitable about poor is that workers are often isolated, working conditions in the gig economy. Finally, and most importantly, workers atomised, and placed in competition. Notwithstanding their claims to the and workers’ organisations are at The platform work model presents contrary, platforms have substantial the core of Fairwork’s model. Our challenges for workers to connect and control over the nature of the jobs that principles have been developed create networks of solidarity. However, they mediate. Workers who find their and are continually refined in close as we have witnessed during recent jobs through platforms are ultimately consultation with workers and their international strikes led by delivery gig still workers, and there is no basis representatives. Our fieldwork workers, they are starting to organise for denying them the key rights and data, combined with feedback and push for collective negotiations protections that their counterparts in from workshops and consultations not just locally but also internationally. the formal sector enjoy. Our scores Labour Standards in the Platform Economy | 21

show that the gig economy, as we know it today, already takes many forms, with some platforms displaying greater concern for workers’ needs than others. This means that we do not need to accept low pay, poor conditions, inequity, and a lack of agency and voice as the norm. We hope that our work highlights today’s gig economy’s contours and paints a picture of what it could become. 22 | Fairwork Ecuador Ratings 2021

Appendix I: Fairwork Scoring System

The five Principles of Fairwork were each Principle, the scoring system A platform can therefore receive a developed through an extensive allows one ‘basic point’ to be awarded maximum Fairwork Score of ten points. literature review of published corresponding to the first threshold, Fairwork scores are updated on a research on job quality, stakeholder and an additional ‘advanced point’ yearly basis. meetings at UNCTAD and the ILO to be awarded corresponding to the in Geneva (involving platform second threshold (see Table 1). The operators, policymakers, trade unions, advanced point under each Principle and academics), and in-country can only be awarded if the basic point stakeholder meetings held in India for that Principle has been awarded. (Bangalore and Ahmedabad), South The thresholds specify the evidence Africa (Cape Town and Johannesburg) required for a platform to receive and Germany (Berlin). This document a given point. Where no verifiable explains the Fairwork Scoring System evidence is available that meets a given Each Fairwork Principle is divided threshold, the platform is not awarded into two thresholds. Accordingly, for that point.

Table 1 Fairwork Scoring System

Principle Basic point Advanced point Total

Fair Pay 1 + 1 = 2 Fair Conditions 1 + 1 = 2 Fair Contracts 1 + 1 = 2 Fair Management 1 + 1 = 2 Fair Representation 1 + 1 = 2

Maximum possible Fairwork Score 10 Labour Standards in the Platform Economy | 23

months.

Threshold 1.2 – Pays the minimum wage plus costs (one Principle 1: additional point) Principle 2: Fair Pay Workers earn at least the local Fair Conditions minimum wage after work-related Threshold 1.1 – Pays at least costs, or there is a policy which Threshold 2.1 – Mitigates task- the local minimum wage (one requires payment above this level. specific risks (one point) point) The threshold for the minimum wage There are policies to protect workers from risks that arise from the processes Irrespective of the employment status plus costs varies between different of work. of the worker, workers earn at least kinds of platform work. In order to establish a threshold, the platform is a local minimum wage, or there is a This threshold requires the platform asked to provide an estimate for work- policy which requires payment above to ensure that there are safe working related costs, which are then checked this level. conditions, and that potential harms (by the Fairwork team) through worker are minimised.32 For 2.1, this means The threshold for 1.1 is based on the interviews.31 To be awarded this point, identifying the task-specific risks level for a local minimum wage (400 there must be either: for the worker when, for example, a USD).27 Workers on the platform must vehicle is used, or there is interaction earn more than the minimum wage rate • A policy that guarantees workers with customers. The specific practices in their working time,28 and this can be earn at least the local minimum leading to the awarding of this point evidenced by either: wage plus costs; or may vary by the type of work and the • A policy that guarantees the • Evidence from the platform that risks involved. workers receive at least the local workers earn at least the local To be awarded a point for 2.1, the minimum wage in their working minimum wage plus costs. platform must demonstrate that: time; or If the platform has completed Table 2, • There are policies or practices in • The provision of summary the mean weekly earnings minus the place that protect workers’ health statistics of transaction data. estimated work-related costs must be above the local minimum wage (see and safety from task-specific risks In the case of (b), the platform is asked Table 2 below). to submit a weekly earnings table (see Threshold 2.2 – Actively Table 2) that averages worker earnings improves working conditions and worker hours for any three-month (one additional point) period over the previous twelve

Table 2 Weekly earnings table

X to Weekly earnings 2X (X+(X/2))

Active hours less than 40 hours/week (part-time) % % % %

Active hours between 40 and 48 hours/week (full-time) % % % %

Active hours more than 48 hours/week (full-time plus overtime) % % % %

Note: X = the local minimum wage, calculated at 45 hours per week. This row is filled out by the Fairwork team, before submitting it to the platform for completion.30 24 | Fairwork Ecuador Ratings 2021

There are proactive measures to This is necessary for workers to in the contract issued by the protect and promote the health and understand the requirements of their platform; and, safety of workers or improve working work. The contracts should be easily conditions. understandable by workers, and • There is no unresolved dispute available in the language/languages about the nature of the For 2.2, the threshold is higher, commonly spoken by the workers on employment relationship; or, involving practices that go beyond the platform. addressing the task-specific risks • The self-employed status addressed by 2.1. This means a To be awarded a point for 3.1, the of the worker is adequately policy that goes beyond ameliorating platform must demonstrate all of the demonstrated and free from the direct task-specific risks, by following: unreasonable clauses. promoting greater health and safety or improvements in working conditions, • The contract is written in clear and beyond what is specified by local comprehensible language that regulations for employment. For the worker could be expected to example, an insurance policy that understand; and, covers workplace accidents would • The contract is issued in the meet the threshold for 2.1, while one language/languages spoken by Principle 4: that also covers the worker or their workers on the platform; and, family outside of work would meet Fair Management 2.2. As policies and practices may be • The contract is available for Threshold 4.1 – There is due focused on the specific form of work, workers to access at all times. the examples that meet the threshold process for decisions affecting may vary by the type of work. Threshold 3.2 – The contract workers (one point)

To be awarded a point for 2.2, the genuinely reflects the nature of There is a documented process platform must demonstrate that: the employment relationship through which workers can be heard, (one additional point) can appeal decisions affecting them, • There is a documented policy (or and be informed of the reasons policies) that promotes the health The party contracting with the worker behind those decisions. There is a and safety of workers or improves must be subject to local law and must clear channel of communication to working conditions, going beyond be identified in the contract. If workers workers involving the ability to appeal addressing task-specific risks are genuinely self-employed, the terms management decisions or deactivation. of service are free of clauses which unreasonably exclude liability on the The threshold for 4.1 involves a part of the platform. platform demonstrating the existence of clearly defined processes for The threshold for 3.2 involves the communication between workers and platforms demonstrating that the the platform. This includes access by contract issued to workers accurately workers to a platform representative, Principle 3: describes the relationship between and the ability to discuss decisions Fair Contracts the platform, the workers, and the made about the worker. Platforms must users. In the case where there is an be able to evidence that information Threshold 3.1 – Clear terms unresolved dispute over the nature of about the processes is also easily and conditions are available the employment relationship, a point accessible to workers. will not be awarded. (one point) To be awarded a point for 4.1, the If workers are genuinely self- platform must demonstrate all of the The terms and conditions are employed,34 platforms must be able to following: transparent, concise, and provided to demonstrate that the contract is free workers in an accessible form. of clauses that unreasonably exclude • The contract includes a documented channel for workers The threshold for 3.1 involves liability on the part of the platform to communicate with a designated demonstrating that the terms and for harm caused to the workers in the representative of the platform; and, conditions of the contract issued to course of carrying out their duties. workers are available in an accessible To be awarded a point for 3.2, the • The contract includes a form.33 Platforms must demonstrate platform must demonstrate that: documented process for workers that the contracts are accessible for to appeal disciplinary decisions or workers at all times, whether through • The employment status of the deactivations; and, the app itself or direct communication workers is accurately defined with the worker. • The platform interface features Labour Standards in the Platform Economy | 25

a channel for workers to • It has mechanisms to reduce the platform is prepared to cooperate communicate with the platform; risk of users discriminating against with collective representation and and, any group of workers in accessing bargaining (or publicly commits to and carrying out work. recognise a collective body where none • The platform interface features yet exists) a process for workers to appeal disciplinary decisions or This threshold requires the platform to deactivations; and, engage with, or be prepared to engage with, collective bodies of workers • In the case of deactivations, the that could take part in collective appeals process must be available Principle 5: representation or bargaining. The to workers who no longer have collective body must be independent access to the platform. Fair Representation of the platform. It may be an official trade union, or alternatively a network Threshold 4.2 – There is equity Threshold 5.1 – There are or association of workers. Where such in the management process worker voice mechanisms and organisations do not exist, the platform (one additional point) freedom of association (one can sign a public statement to indicate point) that they support the formation of a There is evidence that the platform collective body. is actively seeking to prevent There is a documented process through discrimination against workers from which worker voice can be expressed. To be awarded a point for 5.2, the disadvantaged groups. There is no evidence of freedom of platform must: association being prevented by the To be awarded a point for 4.2 the • Publicly recognise an independent, platform. There is no evidence that platform must demonstrate the collective body of workers or platforms refuse to communicate with following: trade union and not have refused designated representatives of workers. to participate in collective • It has a policy which guarantees The first step for the justification of 5.1 representation or bargaining; that it will not discriminate against is establishing the platform’s attitude persons on the grounds of race, If such a body does not exist, it must: towards and engagement with workers’ gender, sex, sexual orientation, voice. This includes both listening to gender identity, disability, religion • Sign a public statement of and responding to worker voice when or belief, age or any other status its willingness to recognise a raised with the platform, as well as which is protected against collective body of workers or trade documenting for workers the process discrimination in local law; and, union. for engaging the platform in dialogue. • Where persons from a Workers should be able to organise and disadvantaged group (such as associate with one another, regardless women) are significantly under- of employment status. Workers must represented among its workers, it not suffer discrimination for doing so. has a plan to identify and remove This includes the freedom to associate barriers to access by persons from beyond the remit of organisational that group, resulting in improved spaces (for example, via instant representation; and messaging applications).35

• It takes practical measures to To be awarded a point for 5.1, a promote equality of opportunity platform must demonstrate that: for workers from disadvantaged • There is a documented process for groups, including reasonable the expression of worker voice. accommodation for pregnancy, disability, and religion or belief; Threshold 5.2 – There is a and collective body of workers • If algorithms are used to that is recognised, and that determine access to work can undertake collective or remuneration, these are representation and bargaining transparent and do not result in inequitable outcomes for workers (one additional point) from historically or currently There is a collective body of workers disadvantaged groups; and that is publicly recognised and the 26 | Fairwork Ecuador Ratings 2021

Credits and Funding

Fairwork draws on the expertise and Roseli Figaro, Milena Franke, Sandra Next Steps section and the Appendix. experience of staff at the CTS Lab Fredman, Pia Garavaglia, Anita Ghazi of FLACSO Ecuador, the American Rahman, Shikoh Gitau, Slobodan Designers: One Ltd., Oxford. University of Cairo, the Centre for Social Golusin, Mark Graham, Markus Funders: This publication arises from Innovation Studies at the Chinese Griesser, Rafael Grohman, Martin research funded by the International University of Hong Kong, De La Salle Gruber-Risak, Sayema Haque Bidisha, Development Research Centre (IDRC) University, the International Institute Khadiga Hassan, Richard Heeks, through the Future of Work in the of Information Technology Bangalore Mabel Rocío Hernández Díaz, Luis Global South (FOWIGS) project, and (IIITB), the Centre for Labour Research, Jorge Hernández Flores, Benjamin the Federal Ministry for Economic Ghana Institute of Management Herr, Salma Hindy, Kelle Howson, Cooperation and Development (BMZ), and Public Administration (GIMPA), Francisco Ibáñez, Sehrish Irfan, commissioned by the Deutsche iSocial, Public Policy Research Center Tanja Jakobi, Athar Jameel, Hannah Gesellschaft für Internationale (CENTAR), the Technical University of Johnston, Srujana Katta, Maja Kovac, Zusammenarbeit (GIZ). The FOWIGS Berlin, Tu Wien, Universidad Adolfo Martin Krzywdzinski, Akhil Kumar, project is coordinated by the Centro de Ibáñez, Universidad del Rosario, Larry Kwan, Sebastian Lew, Jorge Investigación y Docencia Económica Universidade do Vale do Rio dos Sinos Leyton, Melissa Malala, Oscar Javier (CIDE) and Fundación Centro de (Unisinos), Universitas Gadjah Mada’s Maldonado, Shabana Malik, Laura Implementación de Políticas Públicas Center for Digital Society, University Clemencia Mantilla León, Claudia para la Equidad y el Crecimiento of California’s Hastings College of the Marà, Évilin Matos, Sabrina Mustabin (CIPPEC). Law, the University of Cape Town, Jaigirdar, Tasnim Mustaque, Baraka University of Leuven, the University Mwaura, Mounika Neerukonda, Special Thanks to: We want to of Manchester, University of Oxford, Sidra Nizamuddin, Thando Nkohla- thank Mounika Neerukonda at the the University of the Western Cape, Ramunenyiwa, Sanna Ojanperä, International Institute of Information Weizenbaum Institut, WZB Berlin Social Caroline Omware, Balaji Parthasarathy, Technology Bangalore and Kelle Science Center, and XU Exponential Leonhard Plank, Valeria Pulignano, Howson at Oxford University for their University. Jack Qui, Ananya Raihan, Pablo careful reading and feedback on Aguera Reneses, Nabiyla Risfa Izzati, this report. Finally, we would like to Authors: María Belén Albornoz, Henry Nagla Rizk, Cheryll Ruth Soriano, acknowledge a very large number of Chávez, Jean-Paul Van Belle, Mark Nancy Salem, Julice Salvagni, Derly workers and platform managers in Graham, Funda Ustek-Spilda, and Yohanna Sánchez Vargas, Murali Quito for taking the time to help us Alessio Bertolini. Shanmugavelan, Shanza Sohail, Janaki build our platform ratings. All of the Srinivasan, Shelly Steward, Zuly Bibiana Fairwork Team: Daniel Abs, Iftikhar work in this project was shared not Suárez Morales, Sophie Sun, David Ahmad, María Belén Albornoz, Moritz just amongst our research team, but Sutcliffe, Pradyumna Taduri, Kristin Altenried, Branka Andjelkovic, Paula also with the stakeholders who are Thompson, Pitso Tsibolane, Anna Tsui, Alves, Branka Andjelkovic, Thomas ultimately affected by our ratings. Funda Ustek-Spilda, Jean-Paul Van Anning-Dorson, Arturo Arriagada, Belle, Laura Vogel, Zoya Waheed, Jing Conflict of interest statement: None Daniel Arubayi , Tat Chor Au-Yeung, Wang, Robbie Warin, Nadine Weheba, of the researchers have any connection Alessio Bertolini, Louise Bezuidenhout, Yihan Zhu. with any of the platforms, the work Gautam Bhatia, Richard Boateng, undertaken received no funding or Manuela Bojadzijev, Macarena Please cite as: Fairwork. (2021). support in kind from any platform or Bonhomme, Maren Borkert, Joseph Fairwork Ecuador Ratings 2021: Labour any other company, and we declare Budu, Rodrigo Carelli, Henry Chavez, Standards in the Gig Economy. Quito, that there is no conflict of interest. Sonata Cepik, Henry Chávez, Aradhana Ecuador; Oxford, United Kingdom. Cherupara Vadekkethil, Chris King Chi Chan, Matthew Cole, Paska Darmawan, Please note that this report contains Markieta Domecka, Darcy du Toit, sections in common with other Veena Dubal, Trevilliana Eka Putri, Fairwork reports, notably the Fairwork Fabian Ferrari, Patrick Feuerstein, Framework, parts of the Impact and Labour Standards in the Platform Economy | 27

Endnotes

1. Hans-Jürgen Burchardt et al., Nada Dura https://www.ministeriodegobierno.gob.ec/ Década Desperdiciada. Las Sombras Del Para Siempre. Neo-Extractivismo Tras El nacionalidad-y-puerto-mes-a-mes-para- Correismo, Estudios y Análisis (Quito: Boom de Las Materias Primas (UASB - pagina-web-del-mdi-2010-20203/; INEC, CAAP, 2018); Gestión, ‘¿Qué Le Espera a ICDD, 2016). ‘Entradas y Salidas Internacionales’, La Economía Ecuatoriana En El 2020?’, 2020, https://www.ecuadorencifras.gob. Revista Gestión, 19 January 2020, https:// 2. SpeedTest, ‘Ecuador’s Mobile and ec/entradas-y-salidas-internacionales www.revistagestion.ec/economia-y- Broadband Internet Speeds’, Speedtest finanzas-analisis/que-le-espera-la- Global Index, 30 January 2021, https:// 10. Daniela Célleri, ‘Situación laboral y economia-ecuatoriana-en-el-2020 www.speedtest.net/global-index/ aporte económico de inmigrantes en el ecuador#mobile centro/sur de Quito-Ecuador’ (Quito: 14. El Universo: ‘Asamblea discute Rosa Luxemburg Stiftung, October 2020), sobre regulación de plataformas 3. Hootsuite, ‘Digital 2020: Ecuador’, https:// Daniela Célleri, ‘Situación laboral y aporte tecnológicas para servicio de taxis en datareportal.com económico de inmigrantes en el norte de Ecuador.’ https://www.eluniverso.com/ 4. Juan Pablo Albán Alencastro et al., Quito - Ecuador’ (Quito: Friedrich Ebert noticias/2020/01/15/nota/7691805/ Regulación de Internet y derechos Stiftung - ILDIS, February 2019) asamblea-discute-sobre-regulacion- plataformas-tecnologicas-servicio digitales en Ecuador (Quito: USFQ Press, 11. Rafael Peralta, ‘Los inmigrantes 2017), https://libros.usfq.edu.ec/index. venezolanos y su cambio de estatus 15. Asamblea Nacional del Ecuador, ‘Law 55: php/usfq/catalog/view/1/1/6-1; Vicente social en la actividad de servicios en Social Security Law’ (2014). http://cdn. Ordoñez, ‘Asamblea discute sobre quito. El caso de Cabify y Uber.’ (Tesis de ecuadorlegalonline.com/wp-content/ regulación de plataformas tecnológicas Maestría en Relaciones Internacionales uploads/2013/02/LEY_DE_SEGURIDAD_ para servicio de taxis en Ecuador’, y Diplomacia, Quito, IAEN, 2019), SOCIAL-2.pdf El Universo, 15 January 2020, sec. http://repositorio.iaen.edu.ec/ Noticias, https://www.eluniverso.com/ handle/24000/4938; Kruskaya Hidalgo 16. Ministry of Labour, ‘Ministerial Agreement noticias/2020/01/15/nota/7691805/ Cordero and Belén Valencia Castro, ‘Entre No. MDT-2020-223: Young Workers asamblea-discute-sobre-regulacion- la precarización y el alivio cotidiano. Las Contract’ (2020). plataformas-tecnologicas-servicio; María plataformas Uber Eats y Glovo en Quito’ 17. Ministry of Labour, ‘Ministerial Agreement Paz Canales and Michelle Bordachar, (Quito: FES-ILDIS, September 2019). ‘Protección de Datos Personales En No. MDT-2020-222: Entrepreneurship Ecuador: El Momento Es Ahora’, Derechos 12. El Telégrafo, ‘Tres plataformas generan Contract’ (2020). Digitales (blog), 22 January 2021, https:// 4.100 empleos’, El Telégrafo, 9 November 18. Ministry of Labour, ‘Ministerial Agreement www.derechosdigitales.org/15138/ 2019, sec. Economía, https://www. No. MDT-2020-220: Productive Sector proteccion-de-datos-personales-en- eltelegrafo.com.ec/noticias/economia/4/ Special Contracts’. ecuador-el-momento-es-ahora/ plataformas-digitales-repartidores; EL Universo, ‘Uber ha realizado más 19. Kelle Howson et al., ‘“Just Because You 5. Silvana Dakduk and Ricardo Dicarlo, de 17 millones de viajes durante dos Don’t See Your Boss, Doesn’t Mean You ‘Transacciones Electronicas En Ecuador años de operaciones en Ecuador’, El Don’t Have a Boss”: Covid-19 and Gig Durante El Covid19’ (Guayaquil: CECE- Universo, 13 November 2019, sec. Worker Strikes across Latin America’, UEES, 2020); Alexandra Portalanza, Noticias, https://www.eluniverso.com/ International Union Rights 27, no. 3 Edison Duque, and Silvana Dakduk, noticias/2019/11/13/nota/7602665/ (2020): 3–5. ‘Antecedentes y Situación Del uber-da-numeros-sus-operaciones- 20. A maximum of 40 hours per week. E-Commerce En Ecuador’ (Guayaquil: ecuador; Jaime Freire, ‘Glovo cumple CECE-UEES, 2017). un año y presenta estudio sobre 21. The EpH (earning per hour) metric is 6. For Ecuadorian statistics “adequate impacto económico de la APP’, El based on variables such as minimum employment” means working 40 hours a Universo, 22 October 2019, sec. La wage, similar activities, competitors, cost week for a minimum wage of 400 USD per Revista, https://www.eluniverso.com/ of living, and costs relating to delivery month, having a formal contract and being larevista/2019/10/22/nota/7570457/ drivers’ activities, for example fuel, mobile affiliated with the social security system. glovo-cumple-ano-presenta-estudio- telephone, and vehicle maintenance Underemployment and informality include sobre-impacto-economico-app; Wilmer (Globo Report 2021). all jobs that do not meet one or more of Torres, ‘5.000 solicitudes llegaron a Rappi, en su primera semana en Quito’, 22. Gernot Grabher and Erwin van Tuijl, these conditions: unpaid, underpaid or ‘Uber-Production: From Global Networks part-time work. Primicias (blog), September 2019, https:// www.primicias.ec/noticias/economia/ to Digital Platforms’, Environment and 7. INEC, ‘Estadísticas’, Instituto Nacional de rappi-operaciones-ecuador-solicitudes- Planning A-Economy and Space 52, no. Estadística y Censos, 2020. https://www. trabajo/; Lindon Sanmartin, ‘Glovo 5 (August 2020): 1005–16, https://doi. ecuadorencifras.gob.ec/institucional/ cumple su primer aniversario en Ecuador org/10.1177/0308518X20916507; home/ liderando las descargas de aplicaciones Vili Lehdonvirta et al., ‘The Global multidelivery’, SRradio (blog), 22 July Platform Economy: A New Offshoring 8. INEC, ‘Estadísticas’, Instituto Nacional de Institution Enabling Emerging- Estadística y Censos, 2020. https://www. 2019, https://www.srradio.com.ec/ glovo-cumple-su-primer-aniversario-en- Economy Microproviders’, Journal ecuadorencifras.gob.ec/institucional/ of Management 45, no. 2 (February home/ ecuador-liderando-las-descargas-de- aplicaciones-multidelivery. 2019): 567–99, https://doi. 9. Ministerio de Gobierno del Ecuador, org/10.1177/0149206318786781 13. Alberto Acosta and John Cajas G., Una ‘Entradas y salidas 2010-2020’, 2020, 23. Sarah O’Connor, ‘When Your Boss Is 28 | Fairwork Ecuador Ratings 2021

an Algorithm’, The Financial TImes, 8 28. According to the ILO’s (2018) report worker; the fact that such remuneration September 2016, https://www.ft.com/ on “Digital Labour Platforms and the constitutes the worker’s sole or content/88fdc58e-754f-11e6-b60a- Future of Work”, for every hour of paid principal source of income; provision of de4532d5ea35 work, workers spend 20 minutes on payment in kind, such as food, lodging unpaid activities, including, for example, or transport; recognition of entitlements 24. Isadora Romero. “Los repartidores searching for tasks and researching such as weekly rest and annual holidays; de delivery, trabajadores esenciales clients. In order to account for this payment by the party requesting the work durante la pandemia en Quito, additional time spent on searching for for travel undertaken by the worker in Ecuador” National Geographic (https:// work, as well as time spent between order to carry out the work; or absence of www.nationalgeographicla.com/ work tasks, we define ‘working time’ financial risk for the worker’. fotografia/2020/08/repartidores- as including both direct (completing a delivery-pandemia-ecuador?image=n task) and indirect (travelling to or waiting 35. See the ILO’s Freedom of Association gd-76943-20_2020_000014001) between tasks) working hours. and Protection of the Right to Organise Convention, 1948 (C087), which 25. Pichincha Comunicaciones, ‘Repartidores 29. The “+1” is one unit of the lowest stipulates that “workers and employers, de Ecuador y 7 países más se han denomination of the currency, to ensure a without distinction, shall have the right convocado a un Paro Internacional boundary between the two figures. to establish and join organizations of el miércoles 22 de abril’, Pichincha their own choosing without previous Comunicaciones EP (blog), 21 April 2020, 30. The table contains four columns of data. authorisation” (Article 2); “the public http://www.pichinchacomunicaciones. The first is the percentage of workers authorities shall refrain from any com.ec/repartidores-de-ecuador-y- earning less than the minimum wage (X). interference which would restrict the 7-paises-mas-se-han-convocado-a- The rows represent less than full time, right or impede the lawful exercise un-paro-internacional-el-miercoles- full time, and full time with overtime. thereof” (Article 3) and that “workers’ 22-de-abril/; Vistazo, ‘Repartidores and employers’ organizations shall not protestan en Quito por “pago justo” y 31. Taxes are not considered to be a work- related cost. be liable to be dissolved or suspended mayor seguridad sanitaria’, Vistazo, 23 by administrative authority” (Article 4). April 2020, https://www.vistazo.com/ 32. The starting point is the ILO’s Similarly the ILO’s Right to Organise and seccion/pais/actualidad-nacional/ Occupational Safety and Health Collective Bargaining Convention, 1949 repartidores-protestan-en-quito- Convention, 1981 (C155). This stipulates (C098) protects the workers against acts por-pago-justo-y-mayor-seguridad; that employers shall be required “so of anti-union discrimination in respect Pichincha Comunicaciones, ‘Ante far as is reasonably practicable, the of their employment, explaining that not la falta de respuestas, repartidores workplaces, machinery, equipment and joining a union or relinquishing trade vuelven a movilizarse en Quito y el processes under their control are safe union membership cannot be made a mundo’, Pichincha Comunicaciones and without risk to health”, and that condition of employment or cause for EP (blog), 29 May 2020, http://www. “where necessary, adequate protective dismissal. Out of the 185 ILO member pichinchacomunicaciones.com.ec/ante- clothing and protective equipment states, currently 155 ratified C087 and la-falta-de-respuestas-repartidores- [should be provided] to prevent, so far 167 ratified C098. vuelven-a-movilizarse-en-quito-y-el- as is reasonably practicable, risk of mundo accidents or of adverse effects on health. 26. Chris F. Wright et al., ‘Beyond National 33. The ILO’s Maritime Labour Convention, Systems, Towards a “Gig Economy”? A 2006 (MLC 2006), Reg. 2.1, and the Research Agenda for International and Domestic Workers Convention, 2011 Comparative Employment Relations’, (C189), Articles 7 and 15, serve as Employee Responsibilities and Rights helpful guiding examples of adequate Journal 29, no. 4 (December 2017): provisions in workers’ terms and 247–57, https://doi.org/10.1007/ conditions, as well as worker access to s10672-017-9308-2; Mark Graham et those terms and conditions. al., ‘The Fairwork Foundation: Strategies for Improving Platform Work in a Global 34. ILO’s Employment Relationship Context’, Geoforum 112 (June 2020): Recommendation, 2006 (R198) 100–103, https://doi.org/10.1016/j. recommends that member countries geoforum.2020.01.023 develop legal and regulatory frameworks containing specific indicators that speak 27. The ILO defines minimum wage as the to the existence of an employment “minimum amount of remuneration relationship, which might include: (a) the that an employer is required to pay fact that the work is carried out according wage earners for the work performed to the instructions and under the control during a given period, which cannot be of another party; involves the integration reduced by collective agreement or an of the worker in the organization of the individual contract.” Minimum wage enterprise; is performed solely or mainly laws protect workers from unduly low for the benefit of another person; must pay and help them attain a minimum be carried out personally by the worker; standard of living. The ILO’s Minimum is carried out within specific working Wage Fixing Convention, 1970 C135sets hours or at a workplace specified or the conditions and requirements of agreed by the party requesting the work; establishing minimum wages and calls is of a particular duration and has a upon all ratifying countries to act in certain continuity; requires the worker’s accordance. Minimum wage laws exist in availability; or involves the provision more than 90 per cent of the ILO member of tools, materials and machinery by states. the party requesting the work’; (b) periodic payment of remuneration to the Labour Standards in the Platform Economy | 29

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