Workers Lose as Laws Can't Keep Pace with Rideshare Apps
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30 December 2023 11:25 WIB
There have been no significant regulatory developments impacting the welfare and overall working conditions of gig workers in Indonesia. One study found most gig workers in Indonesia work an average of 12 hours a day.
Other studies highlight an apparent decline in gig workers’ earnings, with many now earning less than the minimum wage. The partnership relations are also normalizing piecework because minimum wage regulations do not bind this so-called partnership.
The partnership relations in the gig economy are simply unfair because even though they are called “partners”, the majority (if not all) of the decisions regarding the “partnership” are decided only by one party: the platforms. In that sense, the term “partnership” itself is misleading.
The current gig economy’s regulations are limited to the services (even those that are limited to specific transportation services), without any policies that acknowledge the root of the problems: the partnership relation in the gig economy.
The imbalance between platforms and their workers, exacerbated by legal loopholes, is making the gig workers’ welfare decline over time.
Gig workers enjoyed decent earnings during the platforms’ honeymoon period, when platforms paid bonuses and gave incentives to workers and customers.
But now, with the honeymoon over, it has become a race to the bottom. Research shows that poor working conditions mean many gig workers want to quit.
However, finding new jobs in the Indonesian labor market is challenging. For those who cannot leave gig work, a policy intervention to improve the quality of their welfare is desperately needed. Regulating partnerships is one logical way to move forward.
This article is part of a Special Report on the Asian Gig Economy, produced in collaboration with the Asian Research Centre - University of Indonesia.
Originally published under Creative Commons by 360info™.
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