Date : 26/07/2023

Relevance – GS Paper 3 – Indian Economy – Gig Economy

Keywords – Gig Workers, employer-employee relationships, Hamal Model

Context –

The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act 2023, passed in the Rajasthan Assembly on July 24, is a testament to the power of workers' struggles in shaping labor laws and securing the rights of gig workers in the evolving gig economy. The term "gig" originated from jazz musicians performing short time-based shows, but it has been co-opted by the capitalist economy to define current work arrangements that often lack employer-employee relationships. This has led to gig workers facing challenges in terms of fair wages, working conditions, and social security. The Act recognizes the need to protect gig workers and provide them with social security rights, drawing inspiration from historical labor movements and creating a novel approach to secure their well-being.

The Plight of Gig Workers in the Gig Economy

The gig economy, characterized by contract-based and app-driven work, has created a scenario where employers escape most responsibilities while extracting significant profits. For instance, in transport-based platforms like Uber and Ola, aggregators connect customers with drivers, taking substantial commissions. Algorithms regulate rides, taxes, and profit distribution, leaving gig workers with minimal benefits and no social security. The lack of employer-employee relationships denies gig workers the right to fair wages, decent working conditions, and social security provisions.

A Breakthrough in Workers' Rights: The Rajasthan Law

The Rajasthan law is a groundbreaking development in protecting the rights of gig workers. Led by workers, their unions, and civil society groups, the demand for social security rights through a gig workers' welfare law was compelling and forced aggregators to acknowledge the need for some social security measures. The law aims to establish a board to ensure gig workers' registration and welfare, addressing their vulnerabilities and providing a platform for collective bargaining and negotiation.

The Hamal Model: A Blueprint for Workers' Rights

Drawing inspiration from the Hamal Panchayat, a union formed more than 60 years ago by laborers who carried heavy sacks for merchants, the Rajasthan law incorporates a similar approach to secure workers' rights. The Hamal Panchayat demanded and succeeded in implementing a law that set up a "Mathadi board," registering workers and merchants. The merchants were legally required to deposit the workers' wages and a levy for social security schemes managed by the board. This model proved highly effective, providing workers with gratuity, health and education benefits, and other rights. The tripartite board allowed for collective deliberation and harmonious formal platforms for negotiation.

The Rajasthan Campaign: Borrowing from the Hamal Model

The Rajasthan campaign for app-based gig workers adopted the Hamal model and centered its demand around social security. The campaign successfully convinced the ruling party and the state government to implement a law that establishes a board and social security fund financed through a fee on every transaction. This approach ensures that gig workers receive the social security they deserve. The board's digital nature allows for greater transparency and access to data, empowering workers to protect their rights and hold employers accountable.

Implications of the Act: A New Form of Social Security

The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act 2023 has far-reaching implications for workers' rights and social security. With the rise of threats such as Artificial Intelligence in the workforce, this Act serves as a beacon of hope, demonstrating that fair and creative work is essential to human nature. Machines can be harnessed "by people" with democratic principles of justice and equality, protecting workers' human rights.

The Act's digital nature enables greater transparency and access to data, empowering workers to safeguard their rights in the rapidly evolving gig economy. The Act can serve as a model for other states and countries facing similar challenges in the gig economy. By setting up a board to protect gig workers' rights, the Act provides a platform for collective bargaining, negotiation, and resolution of disputes. This ensures that workers have a say in their working conditions and can advocate for their rights more effectively.

Moreover, the Act's focus on social security is a step towards addressing the vulnerabilities faced by gig workers. It acknowledges that social security should be an essential part of a worker's wage, ensuring that they have support during times of crisis, illness, or old age. By requiring employers to contribute to the social security fund, the Act establishes a sense of responsibility and partnership between gig workers and aggregators.

The Act's positive implications for gig workers' rights and social security extend beyond Rajasthan. As the first gig worker-specific social security law in the country, it sets a precedent for other states and countries to follow. The gig economy is a global phenomenon, and the Rajasthan law could serve as a guiding light for policymakers seeking to protect gig workers' rights worldwide.

Conclusion

The Rajasthan Platform Based Gig Workers (Registration and Welfare) Act 2023 is a historic step towards fair work and social security for gig workers. By drawing from the struggles of workers in the past, the Act creates a platform for gig workers to secure their rights and ensures that they are not left vulnerable in the rapidly evolving gig economy. The Act's focus on social security and collective bargaining provides gig workers with the tools they need to demand fair wages, decent working conditions, and respect for their human rights.

As we face new challenges, such as the integration of Artificial Intelligence in the workforce, the Act serves as an inspiration to prioritize human-centric work and ensure that democratic principles guide decision-making processes. The Act's digital nature enables greater transparency and access to data, empowering workers to safeguard their rights and hold employers accountable. With its far-reaching implications, the Act could be a model for other states and countries seeking to protect gig workers' rights and build a fairer and more equitable future for the workforce.

Source – The Hindu