The freedom to exploit

The gig economy is often presented as the path to freedom from the 9 to 5 drudgery most of us call a work day. But that’s a lie. The gig economy is a race to the bottom that will accelerate social and economic inequalities while enriching a handful of tech titans. The gig economy is about exploitation.

New Zealand is well behind most developed countries in its adoption of short-term contracts and freelance work that turn employees into independent contractors, or gig workers.

Just one in every 14 of us are working two jobs, which would indicate not many of us are using our spare time to be an Uber driver or recharge Lime scooters or answer an Air Tasker ad.

But the situation in the United States gives us a glimpse of a potential future here. Just over one-third of its workforce

– 55 million people – are gig workers.

Many of them may be entirely happy with the situation. They are their own boss, free to fit their working life around their personal life and, in doing so, live a better one.

That’s an outstanding benefit. That’s the sort of benefit you’d sacrifice a lot of have.

Which is lucky because freelancers and independent contractors have to give up job security, holiday and sick pay, automatic KiwiSaver contributions, having colleagues and any pretence of worker rights.

Most of all, they have to give up on a regular income. This works for people with a highly desirable skill set. But these skilled people represent just a fraction of the gig economy.

The gig economy is dominated by low-skill, lowwage

jobs such as driving for Uber or a courier company. Entry requirements for this type of work are low. A vehicle, lack of a criminal record, the time to do it and you’re in.

But low entry barriers drive wages and conditions down. It is not a fair deal even if, as independent contractors, they are volunteering for the work.

The fallacy of the freedom that independent contractor status grants workers, who are invariably young, was exposed last year when the conditions under which courier drivers toiled came under the spotlight. Fourteen-hour days without a break, increased delivery numbers and no sick leave were normal. Many said they were treated like slaves.

It would be naive to think that the likes of Uber would be any different. Or indeed any tech company offering gig work.

Though founded with high ideals to make a better world, most now act like every other corporation and push the law to the limits in the pursuit of profits.

We should not let buzzwords like ‘‘gig’’ give rise to the belief that the ability to ‘‘monetise’’ our free time is for our benefit and not theirs.

Last Tuesday California’s legislators passed a bill that paves the way for independent contract workers such as Uber drivers to get holiday and sick pay. Workers were being ‘‘cheated’’, they said, and this was a law to stop them being cheated.

Predictably gig companies decried the law, claiming it would kill the gig economy.

That wouldn’t be so terrible.

We should not let buzzwords like ‘‘gig’’ give rise to the belief that the ability to ‘‘monetise’’ our free time is for our benefit and not theirs.