Gig and Platform Worker Strikes

The recent year-end strike by gig and platform workers highlights critical issues regarding remuneration and work conditions, providing an opportunity for quick-commerce and food-delivery firms to rethink their business models.

Key Demands and Issues

• Fair and Transparent Wages: Workers demand fair compensation, emphasizing the need for wages to align with the new labor Codes.
• Ban on 10-Minute Delivery Models: The aggressive delivery deadlines pressure workers to prioritize speed over safety.
• Alignment with Labor Codes: Workers seek better pay and benefits as per recent labor regulations.

Industry Context and Growth

• Rapid Expansion: Quick commerce has seen swift growth, necessitating a large workforce.
• Future Projections: NITI Aayog estimates the number of gig workers will grow from 10 million to 23 million by 2029-30.

Challenges in Current Business Models

• Traffic Rule Violations: The need for speed results in frequent traffic violations by delivery workers, risking public safety.
• Pay Discrepancies: Surveys indicate gig workers earn 10-25% less than permanent employees, with many earning below minimum wage despite long hours.
• Lack of Benefits: Most gig workers lack medical and social security benefits, with 90% having no savings.

Responses and Regulatory Measures

• Temporary Incentives: Some firms increased incentives temporarily during peak periods, which is not a long-term solution.
• Labor Codes Implementation: Effective November 21, labor Codes extend welfare benefits to gig workers and require companies to contribute to a social-security fund.
• Regulatory Challenges: The industry remains largely unregulated, posing challenges for enforcing humane work conditions.

The gig economy's rapid growth underscores the urgent need for companies and the government to ensure fair and safe working conditions for its workforce.