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Gig economy must be brought into line, for the sake of all workers

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Sarina says that in Australia, “up until now, the rates of pay for gig economy workers have often been lower than Award wages, so there is the issue of whether these models have been used to circumvent standards.

“The bigger question is the ongoing sustainability of the business models themselves; if the main advantage of these models was a reduction in employment and labour costs, and these companies now can’t do that, then can the models even remain viable?”

Taksa says a model where workers and the services they deliver are cheap because workers don’t have rights and protections also transfers costs when things go wrong from business to the public purse.

“We have seen deaths of gig economy workers, which raises occupational health and safety issues because the risks – both in terms of physical threats to workers and mental health implications – are not adequately being accounted for.”

While Australian employment law does not have the same “worker” category as UK law, Sarina says that country’s Supreme Court ruling is nonetheless a shot across the bows of companies’ operations in Australia.

“The UK court decision is important because it shows that courts are continuing to look beyond the terms of the contract .”

Dr Troy Sarina

“The UK court decision is important because it shows that courts are continuing to look beyond the terms of the contract and instead are focusing on identifying the true nature of the relationship between the parties,” Sarina says.

“What we are seeing here is that the law is robust and dynamic in responding to how technology is changing the way work is organised.”

Industry advocates argue that the gig economy provides work for many people who otherwise find it hard to enter the labour market, and that giving them employee-like rights risks interrupting the gig economy’s growth and the benefits to the community that flow from it.

But Taksa notes that many gig workers do not have the opportunity for more decent work. For some, particularly migrants, the issue relates to the lack of recognition of overseas qualifications and skills for full employment in Australia.

“There are costs associated with this lack of recognition not only borne by individuals but also by society. Perhaps organisations need to consider how cost savings associated with the shift from full-time to gig workers can result in productivity losses for full-time staff who are left to perform connecting and intangible work on top of their existing responsibilities.”

She argues that “the impact of intangible costs on productivity, health and wellbeing need to be accounted for”.

Vulnerable workers hardest hit

Consumers can determine whether workers in the gig economy get a fair go.

Consumers can determine whether workers in the gig economy get a fair go.Credit:Matt Davidson

The gig economy is sometimes seen as combining entrepreneurial interests and increased worker flexibility, which has allowed some people to unlock unused skills that can contribute to the economy overall, Sarina explains.

“This seems to be a good thing because it provides people with greater autonomy and discretion over their own time and there are certainly quite a few people who use gig work to supplement their income,” he says.

“The other side of that, when you look at it from a workers’ rights and social needs perspectives, is that we have to think about the proliferation of that work, and ask whether it does help maintain decent standards and safe conditions of work for some of our most vulnerable members of society.”

Adds Taksa: “We need to be mindful of the fact that the gig economy also results in underemployment – and, at the other extreme, it can lead to intensification of work and overexploitation of workers, as people juggle many jobs to try and make a living wage.

In effect, choices to depend on gig labour highlight systemic issues relating to the organisation of work more broadly, and the broader impacts on people and their lives.”

The intensification of work generally has been a core element of the success of the gig economy model, says Taksa, since its growth responds to people often being too time-poor to cook, clean or do the gardening, outsourcing the work to cheap gig labour instead.

In one sense, the gig economy hasn’t really changed the nature of work. For Sarina, it has enabled “old world” work like food delivery, gardening and chauffeuring to be organised in a “new world” way.

But much of the benefit of this work is captured by the owners of digital platforms at the expense of the worker.

Professor Lucy Taksa is Director of the Centre for Workforce Futures and Professor of Management at Macquarie Business School.

Dr Troy Sarina is a Member of the Centre for Workforce Futures and Senior Lecturer in the Department of Management at Macquarie Business School.

This article was originally published in Macquarie University’s Lighthouse magazine lighthouse.mq.ed.au

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Gig-economy riders in Spain must become staff within 90 days under new rule | WTVB | 1590 AM · 95.5 FM

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Gig-economy riders in Spain must become staff within 90 days under new rule | WTVB | 1590 AM · 95.5 FM | The Voice of Branch County

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Bye 9-to-5, hi mental health struggles: the effect of the gig economy

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The gig economy offers both freedom and uncertainty (Getty)

The way we work is changing and it’s not only because of the pandemic. There are a lot of options available to us these days. Too many, in fact. One such alternative is the gig economy

 Essentially, the gig economy means that workers are paid for ‘gigs’ which are short-term, temporary jobs, often referred to as freelance work, as opposed to permanent employment.

Gig economy workers could already be in full-time or part-time employment though, taking on gig work to top up their income and make ends meet. Or, they could be self-employed, filling their day-to-day lives with enough freelance hours to make a living. 

Long gone are the days of simply working nine-to-five.

For some, this fundamental shift in the way we work offers flexibility and freedom to carry out work job-to-job. For others, it brings insecurity, no promise of contractual work and lack of holiday and sick pay.

According to research by the University of Hertfordshire, between 2016 and 2019, the UK gig economy workforce doubled with one in 10 working adults using gig economy platforms in 2019.

But whether it’s moonlighting as a YouTuber or Amazon seller as a side hustle or working full-time juggling a variety of jobs like delivering food for Uber Eats or Deliveroo, how do we know the right time to turn off our ‘work mode’ and boot up our ‘life mode’?

And what is this precarious and ever-changing way of working doing to our mental health?

Research findings from a 2016 study commissioned by the charity, Help Musicians UK, looked into the potential links between the gig economy and mental health.

Looking at over 2,200 musicians working in the gig economy in the UK, 68.5% self-reported depression and 71% anxiety.

Some of the key issues which arose in the study pointed at worries about financial stability, job insecurity, and the requirement to have an online presence and network which exposed individuals to relentless opinion and criticism.

Whilst the phrase gig economy originated from the music industry, the rise of the internet and technological innovations has created a whole new world of opportunity for the way we work and seemingly endless opportunities to fill our home life with more and more work.

But is this tech-enabled gig economy causing burnout because we just don’t know when to stop? Or does it allow us to embrace freedom from traditional corporate roles?

Another study, conducted by researchers at the University of Oxford, has been taking a look at the social, organizational, and policy implications of the shift towards the online gig economy.

Dr Alex Wood, who has been working on the study, says the gig economy can have both positive and negative consequences on our mental health.

‘We find that one of the things workers like most about this work is the sense of being their own boss as they don’t have to deal with a manager on a day-to-day basis.’ Alex tells Metro.co.uk.

Dr. Alex Wood has been studying the effects of the gig economy (Alex Wood)

‘This autonomy from traditional management is a real positive for many workers but that comes with the stress caused by the algorithmic control of their work by platforms; knowing that if they don’t work hard they’ll get a bad rating and lose your ability to make a living.’

‘This algorithmic control comes with its own risks for mental health as workers work hard for long hours without taking many breaks which can cause burnout.’

Michael Daly, associate professor in Psychology/Behavioural Science at Maynooth University, says the research he and his team have carried out on underemployment and psychological distress has shown a notable increase ‘when a discrepancy emerges between the amount of hours they would like to work and the hours offered by their employer.’

‘Workers also want job and income security, benefits such as health insurance, and opportunities for promotion and career development that tend to be underrepresented in gig economy jobs.’

But what do the people who actually exist in this new way of working think about it?

Phillip Smith, a freelance editor, is fully immersed in the gig economy and says finding the right work-life balance is tough. 

‘There was a period at the start where I was building contacts where you would be repeatedly hitting refresh on your emails begging for replies, that was tough.’

As a freelance editor, Phill Smith is immersed in the gig economy (Phill Smith)

Phill says carving out time for exercise has massively counterbalanced the negativity overworking has caused his mental health.

‘I’ve had a few crazy weeks where I’ve landed too much work and realised I had to pull back. I found that I have to rota in downtime during the week. I have a home studio so I can and have worked every hour of the day so forcing myself to go for a run or do yoga is essential.’

Working full time in the gig economy is one thing, buy what about having a ‘side hustle’ alongside a full-time job?

Amy Harris works as a full-time retail manager but launched her own craft store on Etsy during the Covid pandemic.

‘Having been on furlough for so long it was something that definitely worried me if I would be able to keep it up once back,’ she tells Metro.co.uk.

Amy says the opportunity to work on something she’s passionate about brought positivity to her life.

‘It really helped me with my mental health when I wasn’t working and gave me a sense of purpose everyday. I’ve always regretted not pursuing what I studied at university and creating this little business has almost lifted a bit of that guilt and given me a creative outlet.’

Amy Harris said the gig economy allowed her to pursue something she’s passionate about (Amy Harris)

So, what is the future like for the gig economy?

Dr Wood says this way of working has seen and will continue to see growth through the pandemic and beyond.

‘I think the gig economy will emerge from the pandemic even bigger than before with local gig work boosted by the growth of food and retail delivery and remote gig economy boosted by companies looking for more remote workers who can be engaged and controlled without needing to bring them on to the companies’ premises.’

‘Companies are also going to be hesitant to invest in permanent employees in these uncertain times.’

What’s clear is that as the gig economy asserts itself in a post-Covid world, the mental health of workers involved shouldn’t fall by the kerbside as a result.



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MLB mental health crisis: Inside relief pitching gig economy

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Ryan Buchter, 34, has spent almost half his life pitching in professional baseball. In those 15 years, Buchter has been traded four times, released three times, changed organizations 10 times, pitched for teams in 22 cities and only once spent a full season in the majors without being demoted or released. What his itinerant playing record does not show is its cost: a drinking problem, depression and mental health issues that left him so wounded he is speaking out because he knows his story is too prevalent among ballplayers.



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