The Hindu Editorial Analysis- 19th March 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

The dystopian side of Insta-commerce

Why in News?

The gig economy is characterized by insecure, low-wage jobs where digital platforms exert control over the work process. In this system, workers lack essential rights, social security, and fair compensation.

Daily Struggles of Urban Labourers

• In various urban areas, workers congregate in the morning, hoping to be hired by employers or contractors, commonly known as thekedaars.
• These workers, driven by the need for income, often accept meager wages due to the prevalence of a large unemployed population.
• Labourers in these markets face a daily bidding process where the lowest wage prevails, plunging them into financial instability.

Gig Economy: A Virtual Labour Market

• Digital platforms have taken on the role of middlemen by offering job opportunities through apps, removing the necessity for direct human interaction.
• Gig work functions on a piece-rate basis, where workers undertake tasks without any job security or fair compensation.
• These platforms mask their exploitation under the guise of “freedom of choice,” when in reality, workers possess minimal bargaining power.
• Rather than physically assembling at a labour market, workers now rely on their phones to discover job prospects, frequently agreeing to subpar wages.

What is a Gig Worker?

• A gig worker is an individual who engages in short-term or freelance employment instead of a traditional permanent job.
• They operate on a task-by-task basis, often facilitated by digital platforms such as ride-sharing, food delivery, or home services.
• Gig workers do not have job security, fixed salaries, or benefits like health insurance or paid leave.
• Their earnings fluctuate based on demand, and they frequently encounter unpredictable working conditions without legal or social safeguards.

Exploitation Through Ratings and Low Wages

• The digital framework isolates workers, hindering collective negotiations for improved wages and working conditions.
• Workers are compelled to accept tasks under the app’s conditions, without the possibility of negotiation or protection against arbitrary job termination.
• Customers interact with gig workers briefly and often overlook their hardships, long hours, and difficult working environments.
• Ratings have taken the place of fair compensation, as workers must strive for high ratings to retain their jobs instead of advocating for their rights.

New Forms of Gig Exploitation: Insta Maids

• A new service provides domestic workers for as little as ₹49 per hour, further undermining the value of their labor.
• This model continues to exploit vulnerable workers who require immediate employment but are denied dignity and fair pay.
• Workers have begun to protest against this form of exploitation, demanding recognition of their rights and humanity rather than just ratings.

Challenges in Passing Protective Laws

• In certain states, workers have successfully advocated for laws that ensure:
  • A social security framework.
  • Access to their work data.
  • A grievance redress system.
  • A tripartite board for discussions.
• However, political decisions have postponed the implementation of these laws, leaving workers without protection.
• Industry groups and business associations have contested these protective measures, claiming that gig workers are “partners” rather than employees.

Corporate Hypocrisy and the Need for Change

• Corporate leaders publicly advocate for worker welfare but secretly resist legal protections for gig workers.
• The disparity between their public statements promising “financial security and dignity” and their private actions lobbying against fair wages and job security highlights corporate hypocrisy.
• In the absence of legal safeguards, gig workers continue to endure a modern form of exploitation.
• Addressing the injustices of platform-based gig work is crucial for ensuring fairness and dignity for millions of workers.

Conclusion

• The gig economy needs to progress beyond mere digital convenience to guarantee fair compensation and respect for workers.
• Implementing ethical algorithms, robust worker protections, and legal safeguards can transform platform-based jobs into viable and sustainable livelihoods, rather than perpetuating modern-day exploitation.