THE UK's so-called gig economy is bad for your health, bad for your nerves and to add insult to injury, it's badly paid too; a triple whammy of misery, claims a new study.
In research said to be the first of its kind, the report suggests that just over half of all workers in the gig economy are paid below the minimum wage.
That's not great at the best of times, but in the midst of an economic crisis that is seeing the cost of living spiral beyond people's means, it's a calamity in the making.
“The findings highlight that working in the UK gig economy often entails low pay, anxiety, and stress,” said lead author Dr Alex Wood, senior lecturer in human resource management at Bristol University's business school.
“As food, fuel and housing costs keep rising, this group of workers are especially vulnerable and need to be more adequately remunerated and better protected.”
The research team found that 52% of gig workers doing jobs that ranged from data entry to food delivery were earning below the minimum, which rose to £10.42 last month. On average, they were making just £8.97 per hour.
Furthermore, it found that 76% of those responding to the survey also felt insecure in their work, leading to a sense of anxiety.
When it comes to health and safety, 28% felt that gig work was risking theirs, while 25% said they experienced pain on the job.
The sample was small at 510 gig economy workers survey last year. However, the research team claim it provided representation from across the sector.
Half were remote freelancers who used platforms such as Upwork and Fiverr to pick up jobs. These ranged from data entry to website design.
The other half consisted of local drivers who provided food delivery and taxi services through platforms such as Deliveroo and Uber.
Work acquired through these platforms was more than just a 'side hustle'; it was the mainstay of their earnings. On average, those who took part in the survey spent 28 hours a week undertaking gig work, which accounted for 60% of their income.
“A major factor contributing to low pay rates is that this work involves spending significant amounts of time waiting or looking for work while logged on to a platform. Not only is the work low paid, but it is also extremely insecure and risky,” Wood added.
“The self-employed who are dependent on platforms to make a living are urgently in need of labour protections to shield them against the huge power asymmetries that exist in the sector. This clearly warrants the expansion of the current ‘worker’ status to protect them.”
That's a view shared by the gig economy workers surveyed. When asked what would improve their situation, what they most wanted to see were basic rights such as minimum wage rates, holiday and sick pay, and protection against unfair dismissal.
Quite how these things would work in practice, given the 'freelance' nature of the sector, is clearly a key question. Forcing a change is another. Employment rights, historically, were never easily won; it took hard struggle.
Indeed, much gig economy work seeks to occupy a grey area between employee and self-employed contractor tasked to meet specific pre-set briefs on a job by job basis.
For their part, according to the research team, the gig economy workers they surveyed considered their work was best described as self employment. As such, they thought that an extension of labour rights to include the self-employed would significantly improve their working lives.
Some of the ideas that emerged out of the study include unions and platform councils. The latter would be similar to the works councils that exist in some European countries.
Between them, these bodies would represent gig workers' needs and help influence how the platforms operate, or so the theory goes. More than three quarters of the people surveyed felt these would bring immediate benefits.
This is the first research that has investigated what forms of voice gig workers want, the team behind it says. According to them, the findings suggest “strong support” for European style co-determination, whereby worker representatives are consulted on and approve changes that impact working conditions and employment.
Works councils that exist in countries like Germany could therefore provide a model for platform councils and assemblies in the gig economy, it is claimed. This would facilitate workers having a say over the decisions that affect their ability to make a living.
“Respondents strongly felt the creation of co-determination mechanisms would allow workers, and their representatives, to influence platform provider decisions which could instantly improve their working lives,” said Brendan Burchell, professor in social science at Cambridge University, who co-authored the report.
“These policies include elected bodies of worker representatives approving all major platform changes that impact jobs and working conditions. Our findings emphasise the potential for trade union growth in this sector, with majorities being willing to join and even organise such bodies.”
Trade unions might want to take note, then; organisation and representation are key concerns among what may otherwise be deemed a hard-to-reach group: maybe not so hard after all?
Even so, the challenge to ensure work pays is no easy endeavour whatever form employment takes; something the Trades Union Congress (TUC) highlighted recently.
The nature of gig work might serve to depress real earnings, but wage stagnation, together with the onslaught of rising inflation and the cost of living has on take-home pay, is exerting pain of its own.
Last month, the Office for National Statistics (ONS) released its latest labour market overview. Among its findings, the official figures show that pay has risen during the first quarter of 2023 – but hold the cheers; adjusted for inflation, workers have seen their pay cut.
Average total pay (including bonuses) was up 5.8% between January to March this year, while regular pay (excluding bonuses) rose 6.7% among employees. Private sector pay growth exceeded the public sector at 7% and 5.6% respectively.
But reality bites: adjusted for inflation growth in total and regular pay fell by 3% and 2% respectively on the year in January to March 2023.
“Workers have lost more than £1,000 from their pay over the last year, but there’s still no end in sight for the longest wages slump in modern history,” said TUC general secretary, Paul Nowak.
“Real wages remain below where they were in 2008, and the already 15-year pay squeeze is set to last another three years, until 2026.
“It is little surprise that workers are having to take strike action to defend their living standards. They have been pushed to breaking point.”
Nowak used the publication of the ONS figures as an occasion to urge government to “focus on resolving all of the current pay disputes” and end its “attack” on the right to strike. He also called for a boost of the minimum wage to £15 per hour.
Zero hours contracts also got a special mention in the TUC chief's response. While they may not rely on the use of a digital platform such as those referred to in the Bristol University study, the nevertheless represent a part of the gig economy.
The ONS data shows that the number of people on zero hours contracts rose to 1.13 million in the first quarter of 2023, up from 1.02 million during the same period last year. That's a lot of people constantly on the clock, wondering one day to the next, if and when they'll next be working – and therefore paid.
“Zero-hours contracts don’t belong in modern Britain,” Nowak added. “They should be banned along with other outdated and exploitative working practices like fire and rehire.
“The Conservatives promised to make Britain the best country in the world to work in. Instead, they have presided over a huge explosion in insecure jobs and are now attacking a host of other workers’ rights – including the right to strike.”
Work is supposed to pay; time and time again we hear politicians say they're making that happen. In the real world, however, it seems pay packets aren't getting any weightier for those who most need the boost.
MC