Workers pay price as gig economy avoids regulations

I’ve lost count how many times I’ve had a young person working in a warehouse writing code, approach me for help to get a ‘real’ job. Ditto young people delivering food.

The media hails these people as ‘entrepreneurs’. Rubbish. They work for pittance and without a safety net.

According to a new report on the gig economy – which employs almost 1 million Australian – Uber and Deliveroo have deliberately framed their arrangements with workers to avoid regulation.

Former Fair Work ombudsman Natalie James led a two-year investigation into Victoria’s gig economy – and her findings apply across Australia – after deep concern about the treatment of these on-demand workers.

Ms James found the uncertain status of workers – who are not classified as employees and therefore do not qualify for workplace entitlements, protections and obligations – was at the heart of the system’s failure.

She recommended the development of a code of conduct to better protect on-demand workers, the removal of barriers to collective bargaining, and a one-stop-shop support agency to help workers when disputes arise.

On-demand workers are more likely to be young, urban and male. People who speak a language other than English at home are 1.5 times more likely to be platform workers.

An estimated 40 per cent of on-demand workers surveyed as part of the inquiry were not even aware of their rates of pay.

What we have is vulnerable people with very little leverage in the labour market.

 

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