Taskers in the Precariat: Part 2 – Essential Reforms

In “Taskers: The Precariat in the On-Demand Economy: Part 1,” I defined three types of taskers — on-demand, crowd labour, and zero hours employees – and highlighted the problems associated with these new forms of work: insecurity, low and fluctuating incomes, chronic uncertainty, lack of control over time, and the dismantling of occupational communities. I now want to propose policies that could improve taskers’ economic status and work conditions.

The on-demand economy and the precariat are here to stay, and we must fight for new forms of regulation, redistribution, and social protection to redress growing inequities. Real wages for the precariat – including taskers and others — will continue to stagnate. Income redistribution will have to come by other means. Forging a new system will not be easy, but is vital. As even intelligent conservative economic interests recognise, growing inequality threatens economic, social, and political stability.

However, the specifics of tasking also demand remedial policies. Let us start by considering policies for society, then policies directed at labour brokers, and then policies for protecting and enhancing the position of taskers themselves.

At society level, we should stop trying to compress taskers into the category of employee. Labour statistics define workers as either “employees” or “self-employed.” Neither of these terms, nor “freelancers”, is appropriate for describing the status of most people doing tasking, since they lack freedoms associated with being an independent seller of services, and they not employees in the old sense of mutuality of obligations. We should designate “tasker” as a separate category.

In the US, several class action cases are being heard to determine whether taskers in certain sectors should be classified as employees. While we might debate the specific conditions under which taskers could be identified as employees, we would do better to overhaul old labourist rules that privilege employees. It would be better if legislation dealt with the issues more generically. And in any case, why should only “employees” be covered by the protections built up in the 20th century? All forms of work should have the same rights and entitlements. The term ‘labour rights’ is a contradiction, since it is people who have rights, and these should apply to everybody, regardless of their specific labour or work status.

The emergence of taskers has intensified the frictions and divergent interests of different groups of worker. Anybody who thinks there is a unified working class in current circumstances is hallucinating. This is why we need a new system of collaborative bargaining between complementary and substituting occupational groups. The collective bargaining capacities of taskers must also be strengthened. On the one side are employers and labour brokers; on the other are employees, taskers, and freelancers.

Another social concern arises from the fact that the labour brokers are rentiers, earning vast amounts for doing very little if we accept their claim that all they do is provide technology to put clients in touch with ‘independent contractors’ of services. Thus, Uber and its rival Lyft say they are technology, not transport, companies.

By treating taskers as ‘independent contractors’, brokers avoid paying contributions that would entitle taskers to state benefits, and they avoid paying non-wage benefits that employees should receive. In return for their intermediary role, brokers typically take 20% of earnings. But they are free-riding on the public, since if taskers fall on hard times, they will need benefits from the state. Normal employers have to make a contribution to pay for benefits; brokers currently avoid doing so.

Accordingly, the authorities should establish a tasker levy (tax) of, say, 20% of labour brokers’ earnings or for each tasker they contract. Similarly, if they require taskers to use their own equipment, such as a car or machine tools, brokers should pay part of insurance costs. If this is meant to be a “sharing economy”, as its apostles claim, then costs as well as benefits should be shared.

As for the brokers, if we accept that they represent an emerging ‘profession’, they should be pushed to establish stronger professional associations whose members develop and subscribe to formal Codes of Ethics. All brokers should be registered and required to join an association that could monitor conduct of members.

As for the taskers, occupational licensing must be rolled back. Licensing is the form of state regulation promoted in the neo-liberal era in place of guild regulation. In the US, over 1,000 occupations are now subject to licensing, mostly unnecessarily. Licensing often operates as a barrier to the right to practise. The insurance industry and commercial interests dominate licensing, transferring risks, uncertainty, and costs onto workers, and often enabling licensing boards to block or punish someone without due process. Labour brokers and the precariat in general should be united in wishing to see less licensing.

Licensing should be limited to occupations that involve real dangers, as in the case of surgeons, architects, and builders. Otherwise, occupational self-regulation should be revived. And there should be more reliance on accreditation, that is, membership in an association that testifies to competence or experience. For all professions, an international accreditation system should be constructed, with standardised rules. This would allow anybody to practise a particular form of work, but it would ensure that they were competent and met set standards. For example, Uber drivers should be required to display signs indicating whether they are licensed, accredited to a drivers’ association, or neither. They should also be required to show they are insured. Failure to inform a client in advance should be sanctionable.

On wages and prices, in the case of crowd labour, all taskers involved in Dutch auctions should have the right to know what rates are paid to successful bidders and what conditions have been applied. Those on zero-hours contracts should be compensated for inconvenience and insecurity based on hours. Such “stand-by bonuses” are required in Germany and could be set as a base salary. They should also be allowed to do other work without exclusivity clauses in their contracts. Both zero-hours employees and crowd-labour taskers should have the right to decline on-demand tasks without loss of pay or opportunity unless given at least 24 hours’ notice, so that they can gain more control of their lives.

All forms of on-demand labour should involve written contracts (signed and scanned), drawn up and agreed before tasks are allocated or performed, with at least one witness to each party in broker-tasker agreements. Taskers should also be compensated if the broker obliges them to undergo more than one round of consideration before a decision is made to contract them.

Taskers must have a right to know what information brokers share about them and to have false information withdrawn from electronic circulation. To protect taskers, no company should be allowed to inform other firms that a tasker has brought a complaint or sued for compensation, unless a conviction for fraud by the tasker has been obtained. In other words, blacklisting must be banned.

Similarly, customer rating of individual taskers should be curbed. Some brokers dismiss taskers if they receive several poor ratings (made feasible by the app). That might sound reasonable, but it could lead to crude discriminatory practices, and it lacks due process. Prejudiced customers could use the app to grade taskers from ethnic minorites negatively solely because they do not like such people. There should, at least, be demonstrable evidence and opportunities for taskers to defend themselves before actions are taken.

One exploitative aspect of crowd labour requires a special response. Some corporations, such as the Los Angeles-based Business Talent Group, Fox Mobile Entertainers, and Tongal, pay modest prizes to taskers who submit commercially viable ideas. The firms buy ideas at a fraction of their commercial value, since they can patent them, creating a monopoly income stream lasting for twenty years. This is one of the most exploitative tricks in labour history. Regulations should stipulate that taskers should receive at least 50% of the income stream of any of their ideas that is patented.

Finally, taskers should have a right to publicly-funded legal advice, subsidised by contributions from labour broker corporations. Taskers should be required to make a partial payment, to discourage frivolous actions. But having access to legal advice would encourage both sides to make agreements transparent and standardised as much as possible.

Achieving these reforms will require social struggle by and for the precariat. We must realise that the precariat’s vulnerability today is a threat to all of us tomorrow. When sweating spreads to taskers, the threat to wages and working conditions for those outside the precariat grows. We must wake up to that threat.

Guy Standing

Guy Standing is a Professor of Economics, SOAS, University of London.

This entry was posted in Contributors, Guest Bloggers, Issues, The Working Class and the Economy, Work and tagged , , , . Bookmark the permalink.

2 Responses to Taskers in the Precariat: Part 2 – Essential Reforms

  1. Pingback: Generation Jobless: Are STEM Students Next? | Working-Class Perspectives

  2. Jack Labusch says:

    Prof. Standing, thanks. Do you know students and professors in the States who are familiar with your work and who are willing to act as surrogate speakers here? Would you make their names available to a speakers’ bureau experienced with academic talent?

    BTW-I vote Libertarian: free markets, free minds, all that. I’m okay with capital, I’m okay with incentives. My experience, for what it’s worth, is that capital is not okay with capital, but that it wants to rig the whole show as some sort of Fascism Lite.

    Like

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