ILO Pushes For Gig Workers Pay Hikes: Will Swiggy, Ola, And Uber Comply?

While algorithm plays a pertinent role in decided earnings for gig workers employed by ride-hailing platforms and food delivery giants like Ola, Uber, and Swiggy, delivery drivers should be offered a “different payment” during heatwaves, according to a top-level International Labour Organisation (ILO) official.

"When people are suffering, all platforms need to look for a solution," Michiko Miyamoto, Director of the International Labour Organisation (ILO) DWT for India, told Republic Media Network amid soaring temperatures and petrol and diesel prices.

Meanwhile, top industry level sources told Republic Media Network that ride-hailing service providers like Uber already factor in fuel price hike as gig workers will not chose to work with them unless they have been adequately compensated.

Currently, India's fuel prices have nearly increased by Rs 7.5 per litre since May 15.

On the other hand, top officials at India's major food delivery apps noted that at times earnings per delivery for gig workers faces reductions if they decide to cancel on picking up an order after having confirmed it earlier. 

Sharing the perspective of e-commerce players functioning in India, a top-level e-commerce official noted that earnings of gig workers across India are already high, regardless of being employed by either a ride-hailing platform or an e-commerce giant.

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"On an average, they easily earn between Rs 25,000 to Rs 30,000 per month, he said, while adding that the impact of fuel price hike is negligible on their wages and there's no need for them to join any union.

This comes after the Gig and Platform Services Workers Union (GIPSWU) called on drivers and delivery partners to observe a temporary shutdown of app-based services on May 16.

According to the union, fuel price hikes have severely impacted their earnings despite grueling work shifts.

When Republic spoke to a gig-worker employed by Swiggy in Noida, he noted that were instances amid the heatwave when he had to travel nearly 100 kilometres, deliver to 21 different addresses, which resulted in just Rs 1,000 per day earnings. 

While such concerns remain pertinent for gig workers, the implementation of New Codes of Social Security is expected to address key issues for nearly 475 million workers, who are dependent on such platforms. 

Notably, if a platform like Eternal and Ola make no contribution to social security benefits, a 12% annual interest will be applicable on such entities.