ILO presents new report on platform work to the European Parliament
The ILO joined a meeting of the Employment and Social Affairs Committee of the European Parliament and presented the new World Employment and Social Outlook 2021: The role of digital labour platforms in transforming the world of work.
The new ILO report distinguishes between online web-based platforms and location-based platforms. Workers on online web-based platforms perform tasks online, including various services on freelance and contest-based platforms, solving complex programming or data analytics problems on competitive programming platforms, or completing short-term tasks, such as annotating images or transcribing a video on microtask platforms. The tasks on location-based platforms are carried out in person, and include taxi, delivery and home services (such as a plumber or electrician), domestic work and care provision.
“Despite the diversity in types of digital labour platforms, their business model has many common elements,” said Uma Rani, main author of the ILO report. Almost all platforms charge commission fees. Another element is the algorithmic management of the allocation, evaluation and monitoring of work. Many platforms use monitoring and tracking devices to evaluate work processes and performance. The rules of governance are unilaterally determined by the platforms.
These aspects of the business model have huge implications on the workers. Most workers on the platforms earn less than the average, their hourly earnings range from 0.9 to about 8.2 USD per hour, depending on where the platform is based and in which sector it operates.
There is a poor social protection coverage. The majority of the workers on digital labour platforms lack social protection coverage. During the pandemic, 7 out of 10 workers have indicated that they were not able to take paid sick leave, or to receive compensation in the event they were to test positive for the virus.
“Given the diversity in regulatory responses at the country level, the report argues that it is not enough to leave platforms to the courts. It is very important to have regulatory certainty for governments, workers and businesses,” said Ms Rani.
The report urges for international policy dialogue and coordination so that we can find common regulatory solutions and to reinforce the fact that universal labour standards are applicable to all workers.
The Employment and Social Affairs Committee of the European Parliament is currently working on a resolution on fair working conditions for platform workers.
The new ILO report distinguishes between online web-based platforms and location-based platforms. Workers on online web-based platforms perform tasks online, including various services on freelance and contest-based platforms, solving complex programming or data analytics problems on competitive programming platforms, or completing short-term tasks, such as annotating images or transcribing a video on microtask platforms. The tasks on location-based platforms are carried out in person, and include taxi, delivery and home services (such as a plumber or electrician), domestic work and care provision.
“Despite the diversity in types of digital labour platforms, their business model has many common elements,” said Uma Rani, main author of the ILO report. Almost all platforms charge commission fees. Another element is the algorithmic management of the allocation, evaluation and monitoring of work. Many platforms use monitoring and tracking devices to evaluate work processes and performance. The rules of governance are unilaterally determined by the platforms.
These aspects of the business model have huge implications on the workers. Most workers on the platforms earn less than the average, their hourly earnings range from 0.9 to about 8.2 USD per hour, depending on where the platform is based and in which sector it operates.
There is a poor social protection coverage. The majority of the workers on digital labour platforms lack social protection coverage. During the pandemic, 7 out of 10 workers have indicated that they were not able to take paid sick leave, or to receive compensation in the event they were to test positive for the virus.
Regulatory responses
As countries have started to address the working condition issues on platforms, there is a lot of regulatory uncertainty. Depending on the jurisdiction and the country, different measures have been taken. Many governments have taken soft law initiatives along with the social partners. Trade unions have also helped associations of platform workers with legal challenges.“Given the diversity in regulatory responses at the country level, the report argues that it is not enough to leave platforms to the courts. It is very important to have regulatory certainty for governments, workers and businesses,” said Ms Rani.
The report urges for international policy dialogue and coordination so that we can find common regulatory solutions and to reinforce the fact that universal labour standards are applicable to all workers.
The Employment and Social Affairs Committee of the European Parliament is currently working on a resolution on fair working conditions for platform workers.