B.C. ‘gig’ workers punching out of 9-to-5 work world
Province leads in ratio of self-employed, but report finds many left ‘vulnerable’
Whenever Kirsten Starcher wonders whether being self-employed is worth the hassle, she just recalls long commutes or asking her boss for permission to go to the dentist.
“I really value the freedom of being able to balance my life, and having commuted for long stretches in my life I don’t want to have my life sucked away for nothing,” she said.
Starcher — an independent contractor in web design — is part of a fast-growing wave of self-employed workers.
Nearly one in five British Columbians works in the so-called “gig economy,” usually working on discrete projects, according to a new report by the credit union Vancity.
In Canada, only Saskatchewan has a higher proportion due to its large population of temporary farm workers.
Rather than being forced out of the traditional job market, 80 per cent of the 200 people surveyed say they are self-employed by choice and prefer it to regular full-time employment, said Eric Bulmash, Vancity’s manager of community business and investment.
Starcher, 44, soured on office work early and is seldom tempted to rejoin the 9-to-5 world.
She supported herself for several years working a series of contracts at UBC after moving here 16 years ago from New York, where she worked for five years at “being-in-the-office-type jobs.”
“I had a stretch where I was trying to make it as a musician in a rock band, doing web-development work, teaching bass lessons and transcribing for film and video,” she said.
“I didn’t want to put all my eggs in one basket, so I figured if one of those legs got kicked out, the rest would support me.”
Pulling together multiple income streams gave her the time to get established in WordPress web development.
“You do miss the benefits and holidays,” she said. “The idea of taking a stat holiday is kind of laughable.
“I usually don’t even know when they are coming unless someone asks if I have plans.”
Starcher admits to “floating by” without extended health care insurance until just this past year.
More than half of independent workers don’t have extended health and dental plans, the report said. In response, Vancity is collaborating with Pacific Blue Cross to create a health benefits plan for entrepreneurs and independent workers.
Government, too, could do more to reduce the bureaucratic overhead for gig workers, said Mark Simpson, an independent winemaker and consultant.
“I report to seven different government agencies and they all want something different from me,” he said.
“A more unified approach would be a huge help.”
James Buchan, 44, enjoys the freedom to work when he wants, on the projects he likes, wherever he wants, including at the beach.
He left his job in industrial safety and risk management to found ITL Ventures, an independent contractor in web-based marketing.
Buchan admits it would be difficult to qualify for a mortgage today with the ups and downs in income he experiences. He bought his home while still in the traditional workforce in the early 2000s.
Nonetheless, “I would be hardpressed to go back to being a worker bee,” he said.
Many independent workers report finding it difficult to buy a home.
Only one quarter of independent workers earned more than $50,000 last year and 40 per cent earned less than $25,000, the report found.
About 20 per cent are saving adequately for retirement.
Among the recommendations in the report — Independents’ Day: Why gig work is taking hold in B.C. — is the creation of mortgages that do not exclude independent workers because of uneven cash flow.
Self-employment has grown in every age demographic, but the proportion of self-employed seniors 65 and older has increased the most, by 42 per cent between 2011 and 2016.
“Among female seniors, the increase was an astonishing 88 per cent,” the report said.
“After the economic crash of 2008 a lot of retirees are looking for ways to supplement their income in retirement,” said Bulmash. When ride-hailing services such as Lyft and Uber begin operations in B.C., the number of gig workers without benefits, vacation or even the guarantee of minimum wages are expected to make another significant jump.
The report notes that traditional employees have rights and protections under provincial law.
But those protections do not apply to independent contractors, “which leaves a growing population segment vulnerable.”
You do miss the benefits and holidays. The idea of taking a stat holiday is kind of laughable.