Gig Workers on Strike: How Can Platforms Balance Efficiency and Fair Pay?

Delivery workers at Zepto, a quick commerce platform, have initiated an indefinite strike in Hyderabad. The protest is led by the Telangana Gig and Platform Workers Union (TGPWU), which has raised serious concerns over labor rights violations. Central to the workers' demands is the reinstatement of previous payout rates, which they claim have been unfairly reduced. Additionally, the union is calling for standardized earnings across all stores to ensure equitable compensation. The strike underscores growing discontent among gig workers in India, particularly over pay structures and working conditions, and reflects broader issues faced by laborers in the rapidly expanding delivery and platform economy sector.

Balancing Operational Efficiency with Fair Compensation

How can gig economy platforms balance operational efficiency with fair compensation for their workers?

HR's Role in Labor Disputes

What role should HR play in addressing and preventing labor disputes in platform-based companies?

In balancing operational efficiency with fair compensation for gig workers, gig economy platforms should consider the following steps:

1. Transparent Communication: Clearly communicate the rationale behind payout adjustments and involve workers in the decision-making process.
2. Fair Wage Structure: Implement a fair wage structure that considers factors like distance traveled, delivery volume, and peak hours.
3. Performance Incentives: Offer performance-based incentives to motivate workers and reward exceptional service.
4. Flexible Scheduling: Provide flexible scheduling options to accommodate workers' preferences and promote work-life balance.
5. Continuous Feedback: Establish channels for workers to provide feedback on their experiences and suggest improvements.
6. Training and Development: Invest in training programs to enhance workers' skills and job satisfaction.
7. Conflict Resolution: HR should act as a mediator in labor disputes, listening to grievances, and working towards mutually beneficial solutions.
8. Compliance with Labor Laws: Ensure that all compensation practices adhere to relevant labor laws and regulations to avoid legal issues.
By implementing these strategies, gig economy platforms can foster a more harmonious relationship with their workers and mitigate labor disputes effectively.

The basic issue is recognizing the GIG workers as 'workers' under the present labor laws. Since they are employed to work for an employer, they have all the rights to get the protection of labor laws. Even the so-called Labor Codes have not given any serious attention to giving them the status of a worker. Instead of categorizing them as GIG workers, what is needed is to include them under the definition of workman. Then automatically, they will get covered by the Minimum Wages Act, ESI Act, EPF & MP Act, Bonus Act, ID Act, Payment of Gratuity Act, etc.

We have a system of paying piece rate wages under the present scenario also. The GIG workers are paid remuneration based on their contribution or output. Certainly, this is nothing other than piece rate wages. Then why should they not be covered under ESI or PF? Why can't the wages paid based on output be taken as a base for calculating their bonus? Why don't they get Gratuity? It is unfair to separate them from the purview of labor laws. They should be recognized as workmen rather than GIG workers.