Fairwork South Africa Ratings 2020: Labour Standards in the Gig Economy - Labour Standards in the Gig Economy

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Fairwork South Africa Ratings 2020: Labour Standards in the Gig Economy - Labour Standards in the Gig Economy
Labour Standards in the Gig Economy |   1

Fairwork South Africa
        Ratings 2020:
 Labour Standards in
     the Gig Economy
Fairwork South Africa Ratings 2020: Labour Standards in the Gig Economy - Labour Standards in the Gig Economy
2     |   Fairwork South Africa Ratings 2020

Editorial:

Towards Fair Work
As the world economy becomes ever more digitised, the
gig economy has come to define a greater share of labour
processes around the world. Labour-broking digital platforms
are facilitating the shift towards a gig economy, not just for
cloudworkers (e.g. Upwork), but also for location-based platforms
such as ride-hailing (Uber, Bolt), temporary household assistance
(SweepSouth) or food delivery (Mr D).

    Platforms have the potential to address   The Fairwork Project focuses on             that it is deserved. We are proud of
    South Africa’s huge unemployment          five core principles of fair platform       our independence and impartiality,
    problem. But, at the same time, some      work: Fair Pay, Fair Conditions, Fair       since we’re not directly affiliated with
    are disrupting existing social and        Contracts, Fair Management and Fair         workers, platforms or government.
    labour structures, and potentially        Representation. We award scores out
    eroding existing jobs. Ride-hailing       of ten to a platform based on whether       The Centre for IT and National
    platforms are taking chunks out of the    they meet the basic standard (1             Development (CITANDA) at the
    taxi market, but are simultaneously       point) and achieve a higher standard        University of Cape Town (UCT) is
    generating demand: many people who        (1 additional point) for each of these      spearheading the Fairwork ratings
    would never have considered taking a      five principles. The first two principles   in South Africa, along with partners
    taxi now frequently ‘Uber’ somewhere.     concern whether workers receive             from the University of Oxford and the
                                              a fair pay for their work and if their      University of Manchester, who are also
    Sadly, not all is well. Apart from        jobs are characterised by healthy           implementing this ratings scheme in
    creating market shifts, empirical         and safe working conditions. The            India, Germany, and the UK. We also
    evidence increasingly reveals             three others focus on whether the           have a legal team from the University
    that platform workers experience          platform’s contract with the workers is     of the Western Cape (UWC) and Oxford
    precarious and unfair conditions; for     fair; whether management processes          who look at potential government-
    instance the pay levels have sometimes    and communication channels are              level policy actions and regulatory
    become a race to the bottom. Work in      clear and transparent; and whether          interventions to better protect gig
    the gig economy is often unsafe and       platforms allow for the expression of       workers. Furthermore, we are aiming
    insecure. Workers lack protections        worker voice through open worker            to sensitize and influence customers/
    afforded to regular employees, like       representation.                             clients of these platforms to take note
    sick pay and unemployment benefits.                                                   of our ratings. We are also in constant
    They are also vulnerable to arbitrary     We assessed evidence against each of        discussions with platforms themselves,
    termination, often based on inequitable   these principles through a combination      and some have demonstrated a
    regimes of customer ratings. Because      of worker interviews in Johannesburg        concern for fair working conditions by
    of these inequities, the Fairwork team    and Cape Town and platform-provided         taking action to improve their score.
    has taken action to highlight unfair      evidence. Given the complex and
    labour practices in the gig economy,      dynamic nature of the platform              This is our second year of rating South
    and to assist workers, consumers and      economy, reliable data can be difficult     African platforms: we’ve added a
    regulators as they hold platforms to      to come by. We therefore only award         number of platforms, including some
    account.                                  a point when we have clear evidence         highly-rated ones such as M4Jam
                                                                                          and GetTOD, and are continuing to
Fairwork South Africa Ratings 2020: Labour Standards in the Gig Economy - Labour Standards in the Gig Economy
Labour Standards in the Gig Economy |   3

finetune our methodology. Thanks to
the success and impact achieved in this
project, an exciting development is that
                                            Contents
UCT is now also officially spearheading
three Fairwork-aligned rating projects
in Ecuador, Chile and Indonesia. The
fact that some platforms are actively
improving their working conditions          02   Editorial: Towards Fair Work
(and attendant scores) based on
our recommendations; as well as
the fact that research teams from
multiple countries are seeking to
join the Fairwork network, speak to
                                            04   The Fairwork Framework

the significant social impacts of our

                                            06
research.                                        Overview of the South African Gig
While South Africa’s move towards                Economy
the Fourth Industrial Revolution is
inevitable and largely welcome, it is
crucial that we safeguard important
protections for workers. The range in
Fairwork scores across South African
                                            09   The Legal Context: What Makes a
                                                 Worker an Employee?
platforms is proof that very different

                                            11
models of work are possible within the
gig economy. Crucially, this points to           Fairwork Scores
pathways for effective regulation, and
provides a basis from which collective

                                            13
bodies of workers can formulate their
demands. Our hope is that workers,               Platform in Focus: GetTOD
consumers, regulators and companies
use the Fairwork framework and
ratings to imagine, and realise, a fairer
South African gig economy.
                                            14   Workers’ Stories

                                            15
                                                 Theme in Focus: Minimum and Living
                                                 Wages for Platform Workers

                                            16   Impact and Next Steps

                                            18
                                                 Appendix: Fairwork Scoring
                                                 System

Prof Jean-Paul Van Belle,
                                            22   Credits and Funding

Department of Information

                                            23
Systems, University of Cape
Town                                             Endnotes
Fairwork South Africa Ratings 2020: Labour Standards in the Gig Economy - Labour Standards in the Gig Economy
4     |   Fairwork South Africa Ratings 2020

                                                                        01             The five
                                                                                       principles

                                                                        Fair Pay
                                                                        Workers, irrespective of their
                                                                        employment classification, should
                                                                        earn a decent income in their home
                                                                        jurisdiction after taking account of work-
                                                                        related costs.

                                                                        Fair Conditions
                                                                        Platforms should have policies in place
                                                                        to protect workers from foundational
                                                                        risks arising from the processes of work,
                                                                        and should take proactive measures
                                                                        to protect and promote the health and
                                                                        safety of workers.

The                                                                     Fair Contracts
                                                                        Terms and conditions should be

Fairwork
                                                                        transparent, concise, and provided
                                                                        to workers in an accessible form. The
                                                                        party contracting with the worker must
                                                                        be subject to local law and must be

Framework
                                                                        identified in the contract. If workers
                                                                        are genuinely self-employed, terms
                                                                        of service are free of clauses which
                                                                        unreasonably exclude liability on the
                                                                        part of the platform.

Fairwork evaluates the working                                          Fair Management
conditions of digital platforms                                         There should be a documented process
                                                                        through which workers can be heard,
and ranks them on how well they                                         can appeal decisions affecting them,
                                                                        and be informed of the reasons behind
do. Ultimately, our goal is to show                                     those decisions. There must be a
                                                                        clear channel of communication to
that better, and fairer, jobs are                                       workers involving the ability to appeal

possible in the platform economy.                                       management decisions or deactivation.
                                                                        The use of algorithms is transparent
                                                                        and results in equitable outcomes for
                                                                        workers. There should be an identifiable
    To do this, we use five principles that digital platforms should
                                                                        and documented policy that ensures
    comply with in order to be considered to be offering ‘fair work’.
                                                                        equity in the way workers are managed
    We evaluate platforms against these principles to show not only
                                                                        on a platform (for example, in the hiring,
    what the platform economy is, but also what it can be.
                                                                        disciplining, or firing of workers).
    The five Fairwork principles were developed at a number of multi-
    stakeholder workshops at the International Labour Organisation.
    To ensure that these global principles were applicable in the
                                                                        Fair Representation
    South African context, we then revised and fine tuned them in       Platforms should provide a documented
    consultation with platform workers, platforms, trade unions,        process through which worker voice
    regulators, academics, and labour lawyers in Cape Town and          can be expressed. Irrespective of their
    Johannesburg.                                                       employment classification, workers
                                                                        should have the right to organise in
    Further details on the thresholds for each principle, and           collective bodies, and platforms should
    the criteria used to assess the collected evidence to score         be prepared to cooperate and negotiate
    platforms can be found in the Appendix.                             with them.
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02             Methodology
               overview
The project uses three approaches
to effectively measure fairness at work.

Desk Research                                 Worker Interviews
The process starts with desk research to      The third method is interviewing
ascertain which platforms are operating       platform workers directly. A sample of
in each city, as well as noting the largest   6-10 workers is interviewed for each
and most influential ones. This provides      platform. Workers are approached
the overall range of the platforms that       either through the platform directly
are ranked, as well as identifying points     or at known worker meeting points.
of contact or ways to access workers.         These interviews do not aim to build a
Desk research also flags up any public        representative sample. They instead

                                                                                          03
information that could be used to             seek to understand the processes
score particular platforms (for instance      of work and the ways it is carried                        How we
the provision of particular services to       out and managed. They allow us, for                       score
workers, or ongoing disputes).                instance, to see contracts and learn
                                              about platform policies that pertain to     Each of the five Fairwork principles is
Platform Interviews                           workers. The interviews also allow the      broken down into two points: a basic
The second method involves                    team to confirm or refute that policies     point and a more advanced point that
approaching platforms for evidence.           or practices are really in place on the     can only be awarded if the basic point
We interview platform managers                platform.                                   has been fulfilled. Every platform
and request evidence for each of the                                                      receives a score out of 10. Platforms
                                                                                          are only given a point when they
Fairwork principles. This provides
insights into the operation and business
                                              Putting it all together                     can satisfactorily demonstrate their
model of the platform, while also             This threefold approach provides a          implementation of the principles.
opening up a dialogue through which           way to cross-check the claims made
                                              by platforms, while also providing the      Failing to achieve a point does not
the platform could agree to implement
                                              opportunity to collect both positive        necessarily mean that a platform
changes based on the principles. In
                                              and negative evidence from multiple         does not comply with the principle in
cases where platform managers do not
                                              sources. Final scores are collectively      question. It simply means that we are
agree to interviews, we limit our scoring
                                              decided by the Fairwork team based on       not – for whatever reason – able to
strategy to evidence obtained through
                                              all three forms of information gathering.   evidence its compliance.
desk research and worker interviews.
                                              Points are only awarded if clear
                                                                                          Further details on the Fairwork
                                              evidence exists on each threshold.
                                                                                          Scoring System are in the Appendix.
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Overview of the South
African Gig Economy
The South African economy is
characterised by a relatively highly
developed internet infrastructure,
regulatory conditions supporting             “One danger is a
innovation, high levels of unemployment,     race-to-the-bottom
a substantial informal sector, and extreme   that squeezes good
inequality. All of these factors make the    practices out of the
country ripe for the emergence of the gig    market”
economy, which is commonly understood
as a labour market comprised of freelance
and short-term jobs – or ‘gigs’ – wherein
organisations contract with independent
workers on a non-permanent basis, rather
than recruiting full-time employees.1
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                                                                                                  Photo: EQRoy / Shutterstock

Growing numbers of South
African workers find work through
                                             Unemployment rates are well above
                                             40% for the black population, but less
                                                                                       Quality of Gig Work
multinational gig economy platforms          than 10% for the white population;        The employment challenge facing
like Uber, Uber Eats, Bolt and Upwork.       nearly 45% for women, but 35%             South Africa is not simply the
However, in part because of its novelty      for men; and above 55% for those          quantum of jobs but also the quality
and the struggle of formal statistics to     under 25, but less than 20% for those     of jobs being created. Like all of the
keep up, there are no reliable figures       older than 355. Across demographic        world’s economies, South Africa has
on the scale of the South African            groups, unemployment rates have           a spectrum of job qualities available.
gig economy. We have previously              either persisted or grown in recent       At one end of the spectrum is the
estimated that there are around              years, creating an enormous economic      best of formal-sector employment.
30,000 workers in location-based             and socio-political pressure for job      This is well-institutionalised: covered
platform work like taxi driving, delivery,   creation.                                 by relatively well-implemented
and cleaning2, and up to 100,000                                                       government regulations, by
actively undertaking online work, or         In the context of this unemployment
                                                                                       widespread trade union membership,
‘cloudwork’3. While many of the latter       crisis, can South Africa’s gig economy
                                                                                       and potentially by other standards
will not be full-time, this still suggests   platforms create new jobs, and at an
                                                                                       and agreements. As a result, most
gig work touches at least 1% of the          increasing rate? Digital platforms are
                                                                                       workers enjoy reasonable levels of
workforce; and this number grows by          frequently heralded as the solution to
                                                                                       pay and protections. At the other
well above 10% yearly.                       this problem, as they allow those who
                                                                                       end of the spectrum is the worst of
                                             typically face barriers to employment
                                                                                       informal-sector employment. This, by
                                             to find work more easily. Much of the
                                                                                       definition lies outside any framework of
Job Creation in the                          work on platforms has been around
                                             for a long time: riding in a metered
                                                                                       regulation, standards and agreement

Gig Economy                                  taxi, restaurants with their own food
                                                                                       and trade union membership is very
                                                                                       rare. As a result, the jobs created – it
                                             delivery services, domestic cleaners
Of South Africa’s 40 million-strong                                                    is estimated that just under 20% of
                                             hired directly by a family, etc. But
working-age population, just over 13                                                   South African employment lies in the
                                             demand, and therefore work, is also
million are classed as not economically                                                informal sector – bring with them poor
                                             being created by platforms (e.g. people
active4. Of the remaining 26 million,                                                  pay and conditions. It is, therefore the
                                             getting an Uber/Bolt to go out at night
around 16 million are employed,                                                        high-quality, formalised jobs that South
                                             when they might have previously
leaving nearly 10 million people –                                                     Africa most needs to be created.
                                             stayed at home)6. Our worker data
close to 40% of the labour force             suggests a reasonable impact: 30%         So, are South Africa’s gig economy
– unemployed, with unemployment              of our interviewees were unemployed       platforms creating high-quality
rates skewed by race, gender and age.        before getting work with the platform.    formal jobs, or low-quality informal
Fairwork South Africa Ratings 2020: Labour Standards in the Gig Economy - Labour Standards in the Gig Economy
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             40%
                Nearly

of the South African
labour force is
unemployed.

    jobs? Across contexts, our research        the beauty of its landscapes. But it is     provide a job for those previously
    has shown that gig work skews to           also well-known for a negative: that        unemployed and where they pay a fair
    the latter end of the spectrum: gig        it is the world’s most unequal nation.      wage, platforms are making a positive
    workers face low pay (frequently           Its Gini coefficient – a measure of how     contribution. But where workers find
    earning below minimum wages),              unequal a society is – is nearly 50%        themselves earning less than a decent
    dangerous work conditions, opaque          higher than the average for emerging        wage and/or earning less than they
    algorithmic management structures,         markets and, unlike those other             previously did, then inequality may be
    and an inability to organise and bargain   countries, South Africa’s inequality has    worsening, not improving. We discuss
    collectively7. The Fairwork scores (see    risen, not fallen, in the past 20 years.8   this later in the report in relation to
    Page 11) reveal that there is a lot of     The top 1% in South Africa own 67%          our evidence on minimum and living
    variation among South African firms.       of the country’s wealth; the top 10%        wages.
    Some platforms are actively trying to      own 93% meaning, of course, that
    create good-quality work, whereas          the remaining 90% own just 7%9. In
    there is no evidence that others are       South Africa, the legacy of apartheid
    operating with the same concern.           means inequality remains highly
    One danger is a race-to-the-bottom         spatially and racially delineated10. With
    that squeezes good practices out of        this pattern fuelling high crime rates
    the market. Fairwork’s mission is to       and undermining social and political
    prevent this from happening.               cohesion, reducing inequality is a top
                                               priority in the country. This includes
                                               ensuring that technological change
    Inequality and the                         reduces rather than increasing gaps.

    Gig Economy                                Against this backdrop, it becomes
                                               important to consider whether South
    South Africa is well-known for             Africa’s gig economy platforms can
    many positives: its rainbow nation         help to reduce inequality. Where they
    multiculturalism; its sporting prowess;
Fairwork South Africa Ratings 2020: Labour Standards in the Gig Economy - Labour Standards in the Gig Economy
Labour Standards in the Gig Economy |                   9

                                                               Photo: Noel Tock / Flickr

The Legal Context:

What Makes a Worker
an Employee?                                    The first problem is that this
                                                classification is frequently a sham.
                                                Objectively, on most platforms, workers
                                                are under the platforms’ control and
Gig Economy platforms benefit from              deliver their brand just like employees.
                                                In several countries, workers have
a legal loophole that exists in South           taken court action to claim employee
                                                rights, in some cases successfully but
Africa, as in most countries: labour            in others not, depending on the details

rights are limited to workers classified        of their work and the local definition
                                                of ‘employee’. In South Africa, Uber
as ‘employees’. Digital platforms can           drivers who tried to do so were unable
                                                even to have their claims heard. In one
avoid the costs and duties arising from         case, drivers tried to take a dispute
                                                with Uber to arbitration. Despite
employees’ rights – minimum pay,                operating in the South African market,

maximum hours, paid leave etc. – by             the Netherlands-based company was
                                                wrongly held to fall beyond the reach of
classifying their workers as ‘independent       South African law.11

contractors’. Workers on the platforms          The route of litigation is therefore
                                                fraught with uncertainty and
covered by this study were, without             undoubtedly costly. While sham
                                                employment must be exposed,
exception, classified as independent            Fairwork and its co-thinkers believe

contractors.                                    that a more effective solution lies in
                                                promoting appropriate legal protection
Fairwork South Africa Ratings 2020: Labour Standards in the Gig Economy - Labour Standards in the Gig Economy
10   |   Fairwork South Africa Ratings 2020

                                                                                Photo: VladanRadulovicjhb / Shutterstock

                                  extending to all platform workers,              centuries ago, the greatest obstacle
                                  irrespective of their legal classification.     is lack of political will on the part
                                                                                  of policy makers. There is a belief
                                  This also addresses a second problem:           that worker rights discourage job
                                  employee rights were designed for               creation and that, in South Africa,
                                  ‘standard’ employees, such as factory
“Decent work and
                                                                                  job creation is the bigger priority.
                                  or office workers, working fixed hours          However, decent work and job creation
job creation are not
                                  in workplaces where their rights can be         are not mutually exclusive. We need
                                  enforced. But this is possible only to a        to develop - by bringing workers and
mutually exclusive.               limited extent, and with great difficulty,
                                  in the context of platform work. Thus,
                                                                                  other stakeholders to the table - an
                                                                                  enforceable code of basic worker rights
We need to develop                even those rights which do extend to            that are compatible with sustainable
                                  independent contractors – such as
an enforceable
                                                                                  business models. It is in this context
                                  certain rights of domestic workers –            that we see the Fairwork framework

code of basic
                                  are difficult to apply to a dispersed           providing one starting point for
                                  workforce by means of the existing              responsive and effective policy.
worker rights that                institutions.

are compatible                    Moral pressure on platforms
                                  can encourage them to make
with sustainable                  improvements but, unfortunately, not
                                  all platforms will do so voluntarily. That
business models.”                 makes a floor of legal rights necessary.
                                  However, as with factory workers two
Labour Standards in the Gig Economy |    11

Fairwork Scores
Score (out of 10)

  GetTOD                                                                                    8

  NoSweat                                                                                   8

  SweepSouth                                                                                8

  M4Jam                                                                         7

  Picup                                                            6

  Domestly*                                    4

  Uber                                         4

  OrderIn                        3

  Uber Eats                      3

  Bolt 1

  Mr D      0

The breakdown of scores for individual platforms can be seen on our website: www.fair.work/ratings

*Domestly ceased operations in February 2020
12   |   Fairwork South Africa Ratings 2020

 Fair Pay
 Most platforms can evidence that
 workers’ gross pay is at or above the
 minimum wage. However, gig workers
 are expected to provide a lot of their
 own equipment and pay work-related
 costs out of pocket. When we use
 a net calculation, only about half of
 platforms can evidence this principle
 of fair pay, and we see workers often
 working very long hours to cover
 expenses.

 Fair Conditions
                                            Fair Management
 Six platforms are able to evidence
 some action that they take to protect      Arbitrary termination or deactivation
 workers from risks that arise on their     is a big concern for gig workers, who
 jobs. But finding solid evidence of        lack the recourse available to formal
 efforts by platforms to more actively      employees. That’s why we assess
 improve working conditions was harder      whether platforms have due process
 to come by. This is likely due to the      for decisions affecting workers. The
 fact that the independent contractor       Fairwork scoring system stipulates
 status of workers means that platforms     that platforms must include their
 tread carefully here. However, some        policies for disciplinary actions
 platforms have shown improvement           and deactivation in their terms and
 is possible, through provisions like       conditions, as well as provide clear
 affordable health insurance for workers    processes for workers to appeal
 and their families.                        decisions. At the beginning of our
                                            scoring process, only four platforms
                                            could demonstrate such due process.
                                            However, after engaging with Fairwork
                                            in this round, two additional platforms   Fair Representation
                                            (GetTOD and NoSweat) have codified
                                            their deactivation policies, providing    Being able to freely organise is a key
 Fair Contracts                             workers greater recourse. We also         workplace right in most countries.
                                            encourage platforms to ensure there is    In the South African gig economy,
 Platforms in South Africa tend to do       equity in the management process, and     there is still much that could be done
 well when it comes to evidencing           that steps are taken to be inclusive of   to improve conditions in this regard.
 a basic level of fairness in their         marginalised or disadvantaged groups.     Only about half of the platforms could
 contracts: most platforms have clear       Three platforms were awarded this         point to meaningful worker voice
 and accessible terms and conditions.       advanced point, for example Picup         mechanisms. While there are not yet
 However, only two platforms (GetTOD        showed us that they had made an           any collective bodies of workers that
 and NoSweat) were able to evidence         active effort to recruit more women       have been recognised by platforms,
 that the employment status of their        drivers, and M4Jam showed us that         two platforms have published public
 workers is clearly defined and that they   they were consciously extending           statements committing to recognise
 do not unreasonably exclude liability      income opportunities to the lowest-       a collective body should one be
 on the part of the platform.               income communities in South Africa.       organised by their workers.
Labour Standards in the Gig Economy |                   13

Platform in Focus:

GetTOD                                                                                                                     Total

           Principle 1:                      Pays at least the local
                                             minimum wage
                                                                                       Pays the local minimum
                                                                                       wage plus costs
                                                                                                                             2
           Fair Pay
                                                                                                                            POINTS

           Principle 2:
                                             Mitigates task-specific risks
                                                                                       Actively improves working
                                                                                       conditions
                                                                                                                             1
           Fair Conditions
                                                                                                                            POINT

           Principle 3:                      Clear terms and conditions
                                             are available
                                                                                       Genuinely reflects the
                                                                                       nature of the relationship
                                                                                                                             2
           Fair Contracts                                                                                                   POINTS

                                                                                       Evidence of equity and/or
           Principle 4: Fair                 Provides due process for
                                             decisions affecting workers
                                                                                       informed consent for data             1
           Management
                                                                                                                            POINT
                                                                                       collection

           Principle 5: Fair                 Includes freedom of                       Recognises body can
                                             association and worker                    undertake collective                  2
           Representation                    voice mechanism                           representation/bargaining
                                                                                                                            POINTS

                                                                        GetTOD overall score                           08
GetTOD is a Cape Town based platform         it would ensure that a tradesperson              with a union or workers’ association,
that allows users to obtain the services     could not earn below the living wage             including this in its terms and
of tradespeople in their area. GetTOD        (of R6800 per month) when working                conditions. This is a commendable step
works with plumbers, electricians,           through the platform. This provides              to ensure fair worker representation.
builders and other tradespeople in           certainty for workers from the outset.           Having voice and collective power in
Cape Town, Johannesburg, Durban                                                               the workplace is essential for workers
and Pretoria. It could be argued that        In contrast to some of the other                 if they wish to move away from
the company is a simple matching             platforms we rate, GetTOD has                    exploitative relationships.
service: connecting clients and workers      a clearly defined grievance and
much the same way that the Yellow            disciplinary procedure, which workers            Currently at an 8 out of 10, GetTOD
Pages used to do. However, upon              are made aware of. While workers at              could still do more. It needs to find
closer inspection, the company plays a       some other platforms are vulnerable              ways to actively promote health and
more active role in the labour process       to deactivation without notice, GetTOD           safety, and better working conditions,
- signing up and screening workers,          follows a formal 3-strikes process,              and to create space for members
providing guarantees for delivery, and       notifying workers at each stage, and             of underrepresented groups on the
payment to worker and client. In many        providing avenues for appeal. After              platform. GetTOD has indicated that
ways it shows that it has not just a         engaging with Fairwork, GetTOD has               it would like to find ways of recruiting
responsibility, but also the ability, to     agreed to make this process more                 more female workers: something that
ensure fair working conditions.              transparent to workers and has                   would be required for us to award a
                                             amended its terms and conditions to              point for our principle 4.2. Throughout
While most GetTOD tradespeople earn          be explicit that workers have certain            2020, we hope to work with GetTOD to
well above minimum wages, they can           rights during a disciplinary procedure.          discuss the further changes that would
still face pressures after all their costs                                                    be required to get an even higher score
have been paid. After engaging with          Finally, after working with Fairwork,            next year.
Fairwork, GetTOD agreed to adopt a           GetTOD has also publicly announced
living wage policy; publicly stating that    its willingness to engage and negotiate
14   |   Fairwork South Africa Ratings 2020

Workers’ Stories
                      Amy* has driven for ridesharing platforms in         sometimes there isn’t a lot of choice. The
                      Cape Town for the last year. As a woman driver,      hijackers produced a weapon and told Amy* to
                      she is in the small minority, and told us that she   drive for a long time. Eventually they left her,
     Amy              feels particularly unsafe in her work - especially   but they took her shoes, phone and wheels.
                      at night. She worries about crime. Before she        Because they took her phone, she wasn’t
                      drove for ridesharing platforms, she had full        able to push the platform’s in-app emergency
                      time employment as a truck driver, but she was       button during the ordeal.
                      laid off because the company was struggling.
                      With kids to support, she couldn’t lose any time     After the hijacking she switched to working for
                      in finding a new source of income.                   a different platform, which she had heard was
                                                                           more responsive in an emergency. Thankfully,
                      With the first platform she worked for, she          this hasn’t been tested yet. Amy* is in a
                      experienced a traumatic hijacking. The               WhatsApp group with other women drivers, and
                      passengers ordered a cash trip, which                they arrange social get togethers. She hasn’t
                      means payment isn’t guaranteed upfront.              heard of a union that would help make platform
                      Amy* doesn’t like taking cash trips but when         work safer, but she would consider joining one
                      you’re competing with other drivers for fares,       if it existed.

                      Brian* has worked as a food delivery courier         which can threaten his future on the platform.
                      in Cape Town for four years. Back in his home        Once a customer reported that he had a “bad
     Brian            country he held an advanced professional             attitude”.
                      qualification. He’s been working on having
                      his qualification recognised in South Africa,        The platform penalises the drivers if the order
                      but it’s a difficult process. In the meantime,       is wrong or the delivery is delayed. Drivers
                      he is supporting his family by working for the       can also face deactivation for lateness. Brian*
                      delivery platform for over 80 hours per week.        said: “They may ‘switch you off’ if you reject
                                                                           an order, even though you’re supposed to be
                      Brian* spends a lot of those hours waiting           able to reject”. Brian* doesn’t mind working
                      outside popular restaurants with other food          hard to support his family, but he is hoping
                      delivery couriers. The problem is that, when         that soon his qualification will be recognised
                      he’s not on the bike, he’s not earning money.        in South Africa, so that he can enjoy secure
                      But he has costs to cover. Brian* estimates          employment, without the risk of injury or
                      his weekly income to be around R2000, but            termination at will.
                      he pays about R875 per week for fuel, airtime
                      and maintenance. Brian* might just make over
                      minimum wage, but after costs are factored in,
                      he falls well below it.

                      When you’re riding a motorbike for much of
                      the day, accidents and injuries are a real risk.
                      But Brian* says “in terms of accidents [the
                      platform] doesn’t care about you.” There is no
                      assistance or injury cover. Sometimes calls to
 *Names changed                                                                  Photo: VladanRadulovicjhb / Shutterstock
                      the office go unanswered. Brian* is also worried
 to protect worker
                      about receiving a bad rating from a customer,
 identity
Labour Standards in the Gig Economy |                     15

Theme in Focus:

Minimum and
Living Wages for
Platform Workers
In the past half-      South Africa’s national minimum wage
                       was introduced at the start of 2019:
                                                                   other essential needs, including
                                                                   provision for unexpected events”.13
century a wave of      R20 per hour for most work; R15
                                                                   Triangulating from other sources,
                       per hour for domestic work – rising
minimum wage           by 3.8% from 1 March 2020. The              Fairwork has calculated a living wage
                       demonstrated value of a minimum             for South Africa to be R6,800 per
legislation spread     wage led to it being incorporated into      month – R39 per hour equivalent,
                                                                   based on a working week of 40 hours.
throughout the         the Fairwork principles under “Fair
                       Pay”. All of the platforms we rated –       We are pleased to acknowledge

world. While           except Mr D – were given a point for        that two of the platforms we rated
                                                                   – NoSweat and GetTOD – have now
                       their gross pay meeting minimum wage
the impact is          levels.                                     guaranteed that all jobs they post will
                                                                   pay above the living wage.
much debated,          However, a net calculation is more
                       appropriate as that tells us how much       In other sectors, platforms wanting
a recent review        money workers have for themselves           to pay a living wage may need to
                                                                   find a way to beat lower-paying
of international       and their families. For our second “Fair
                       Pay” point, we therefore deduct the         competitors. They may be able to

evidence concluded,    costs workers must pay in order to          raise income and reduce costs given
                                                                   evidence linking living wage payments
                       work from their gross pay: e.g. petrol
“a very muted effect   and vehicle maintenance for drivers,        to improved worker productivity and
                       transport costs for domestic workers.       performance, lower worker turnover/
of minimum wages       On that basis, we were unable to            absenteeism, and better manager—
                                                                   worker relations.14 But they might also
on employment,         demonstrate that workers’ net pay
                       at six of the eleven platforms we           need customers willing to pay some

while significantly    assessed were above minimum wage            premium; in recognition of the better
                                                                   service and wider social benefits –
                       levels.
increasing the                                                     reductions in poverty and inequality –
                       With criticism of the low level of the      that living wages can bring. Ultimately,
earnings of low paid   minimum wage in South Africa, we            as platform users, it’s important
                       have also investigated the implications     to ask ourselves whether we are
workers”.12            of a ‘living wage’: defined as enough for   happy supporting industries in which
                       a basic but decent standard of living       workers are paid below what they can
                       for a worker and their family including     reasonably live on.
                       “food, water, housing, education,
                       health care, transport, clothing, and
16   |   Fairwork South Africa Ratings 2020

Impact
                                                 Our first and most direct pathway to
                                                 improving working conditions in the
                                                 gig economy is by engaging directly

and Next Steps
                                                 with platforms operating in South
                                                 Africa. Many platforms are aware of our
                                                 research, and eager to improve their
                                                 performance relative to last year, and
                                                 to other platforms. Platforms have the
                                                 ability to improve conditions for their
                                                 workers, while continuing to provide
This is the second annual round of               income opportunities. Where positive
                                                 practices exist, Fairwork has had some
Fairwork ratings for South African               success at seeing them encoded and
                                                 formalised. GetTOD’s inclusion of its
platforms, and we are seeing impact begin        disciplinary process in its terms and

to build. As Fairwork’s reach and visibility     conditions is one such example. While
                                                 it seems like a small step, it allows
increases, we see four avenues for               workers to know and assert their rights,
                                                 and hold the platform accountable to
contributing to continued improvement in         its policy. In addition, the freelance
                                                 platform NoSweat has created detailed
the South African gig economy.                   health and safety guidelines that
                                                 clients must sign up to, providing an
                                                 extra layer of recourse and security for
                                                 workers.

                                                 Fairwork’s theory of change also
                                                 draws on the understanding that
                                                 human empathy is a powerful
                                                 force. Given enough information,
                                                 many consumers will be intentional
                                                 about the platforms they choose to
                                                 interact with. Our yearly ratings give
                                                 consumers the ability to choose the
                                                 highest scoring platform operating
                                                 in a sector, thus contributing to
                                                 pressure on platforms to improve their
                                                 working conditions and their scores.
                                                 In this way, we enable consumers
                                                 to be workers’ allies in the fight for a
                                                 fairer gig economy. Beyond individual
                                                 consumer choices, our scores
                                                 can help inform the procurement,
                                                 investment and partnership policies
                                                 of large organisations. They can serve
                                                 as a reference for institutions and
                                                 companies who want to ensure they
                                                 are supporting fair labour practices.

                                                 We also engage with policy makers and
                                                 government to advocate for extending
                                                 appropriate legal protections to all
                                                 platform workers, irrespective of
                                                 their legal classification. In late 2019,
                                                 for example, Fairwork engaged with
                                                 senior officials in the Department of
                 Fairwork’s Pathways to Change   Employment and Labour on creating
                                                 a floor of legally enforceable rights for
                                                 South African gig workers. In coming
Labour Standards in the Gig Economy |                     17

Fairwork’s Principles: Continuous
Worker-guided Evolution
                                                          Fairwork
                                                          Principles

                                                 Changes to Principles
                                             (agreed at annual Fairwork symposium that
                                                  brings together all country teams)

     Periodic International                    Annual Country-level                         Yearly Fieldwork
          Stakeholder                              Stakeholder                              across Fairwork
         Consultations                            Consultations                                Countries
     (involving gig workers’, workers’        (involving gig workers’, workers’            (involving surveys and in-depth
     organisations, cooperatives, etc)        organisations, cooperatives, etc)               interviews of gig workers)

                                              Ongoing Advocacy Efforts
                                             (involving campaigns for worker rights and
                                                 support to workers’ organisations)

   years, Fairwork will continue our          A key challenge in the gig economy            There is nothing inevitable about poor
   policy advocacy efforts to help ensure     is that workers are often isolated,           working conditions in the gig economy.
   that workers’ needs and platforms’         atomised, and placed in competition           Notwithstanding their claims to the
   business imperatives are effectively       with one another. The platform work           contrary, platforms have substantial
   balanced.                                  model presents challenges for workers         control over the nature of the jobs that
                                              to connect and create networks of             they mediate. Workers who find their
   Finally, and most importantly, workers     solidarity.15 But many of the workers         jobs through platforms are ultimately
   and workers’ organisations are at          we talked to are already starting to          still workers, and there is no basis
   the core of Fairwork’s model. First,       organise. This can start with something       for denying them the key rights and
   our principles have been developed         as simple as establishing stokvels            protections that their counterparts in
   and are continually refined in close       (contingency funds, which everyone            the formal sector have long enjoyed.
   consultation with workers and their        contributes small amounts to) which           Our scores show that the gig economy,
   representatives. Our fieldwork             provide some collective cover in the          as we know it today, already takes
   data, combined with feedback               event of injury or deactivation. Many of      many forms, with some platforms
   from workshops and consultations           those we interviewed said they would          displaying greater concern for workers’
   involving workers, informs how we          want to join a union if one existed. Our      needs than others. This means that
   systematically evolve the Fairwork         principles can provide a starting point       we do not need to accept low pay,
   principles to remain in line with          for envisioning a fairer future of work,      poor conditions, inequity, and a lack
   their needs. Second, through               and setting out a pathway to realising        of agency and voice as the norm. We
   continual engagement with workers’         that. Principle five in particular, on the    hope that our work – by highlighting
   representatives and advocates, we aim      importance of fair representation, is a       the contours of today’s gig economy
   to support workers in asserting their      crucial way in which we aim to support        – paints a picture of what it could
   rights and requirements in a collective    workers to assert their collective            become.
   way.                                       agency.
18   |   Fairwork South Africa Ratings 2020

Appendix:

Fairwork Scoring
System
 The five Principles of Fairwork were        Each Fairwork Principle is divided       a given point. Where no verifiable
 developed through an extensive              into two thresholds. Accordingly, for    evidence is available that meets a given
 literature review of published research     each Principle, the scoring system       threshold, the platform is not awarded
 on job quality, stakeholder meetings        allows one ‘basic point’ to be awarded   that point.
 at UNCTAD and the ILO in Geneva             corresponding to the first threshold,
 (involving platform operators, policy       and an additional ‘advanced point’       A platform can therefore receive a
 makers, trade unions, and academics),       to be awarded corresponding to the       maximum Fairwork Score of ten points.
 and in-country stakeholder meetings         second threshold (see Table 1). The      Fairwork scores are updated on a
 held in India (Bangalore and                advanced point under each Principle      yearly basis; the scores presented in
 Ahmedabad), South Africa (Cape Town         can only be awarded if the basic point   this report (see Page 11) were derived
 and Johannesburg) and Germany               for that Principle has been awarded.     from data pertaining to the 12 months
 (Berlin). This appendix explains the        The thresholds specify the evidence      between March 2019 and March 2020,
 Fairwork scoring system.                    required for a platform to receive       and are valid until March 2021.

Table 1 Fairwork Scoring System

Principle                                             Basic point              Advanced point                     Total

         Fair Pay                                          1            +             1             =               2

         Fair Conditions                                   1            +             1             =               2

         Fair Contracts                                    1            +             1             =               2

         Fair Management                                   1            +             1             =               2

         Fair Representation                               1            +             1             =               2

                                           Maximum possible Fairwork Score                                      10
Labour Standards in the Gig Economy |                        19

                                                period over the previous twelve
                                                months.

                                                Threshold 1.2 – Pays the
Principle 1:                                    minimum wage plus costs (one                   Principle 2:
Fair Pay                                        additional point)                              Fair Conditions
Threshold 1.1 – Pays at least
                                                Workers earn at least the local                Threshold 2.1 – Mitigates task-
                                                minimum wage after work-related                specific risks (one point)
the local minimum wage (one                     costs, or there is a policy which
point)                                          requires payment above this level              There are policies to protect workers
                                                                                               from risks that arise from the
Irrespective of the employment status           The threshold for the minimum wage             processes of work
of the worker, workers earn at least            plus costs varies between different
a local minimum wage, or there is a             kinds of platform work. In order to            This threshold requires the platform
policy which requires payment above             establish a threshold, the platform is         to ensure that there are safe working
this level                                      asked to provide an estimate for work-         conditions, and that potential harms
                                                related costs, which are then checked          are minimised.21 For 2.1, this means
The threshold for 1.1 is based on the
                                                (by the Fairwork team) through worker          identifying the task-specific risks
level for a local minimum wage.16
                                                interviews.20 To be awarded this point,        that are involved for the worker,
Workers on the platform must earn
                                                there must be either:                          for example, if a vehicle is used, or
more than the minimum wage rate in
                                                                                               there is interaction with customers.
their working time, 17 and this can be          •      A policy that guarantees workers        The specific practices leading to the
evidenced by either:                                   earn at least the local minimum         awarding of this point may vary by the
                                                       wage plus costs; or                     type of work and the risks involved.
A policy that guarantees the workers
receive at least the local minimum              •      Evidence from the platform that         To be awarded a point for 2.1, the
wage in their working time;or                          workers earn at least the local         platform must be able to demonstrate
                                                       minimum wage plus costs.                that:
The provision of summary statistics of
transaction data.                               If the platform has completed Table 2,         •      There are policies or practices in
                                                the mean weekly earnings minus the                    place that protect workers’ health
In the case of (b), the platform is asked
                                                estimated work-related costs must be                  and safety from task-specific risks
to submit a weekly earnings table (see
                                                above the local minimum wage (see
Table 2) that averages worker earnings
                                                Table 2 below).
and worker hours for any three month

                                                                                              Table 2 Weekly earnings table

                                                                                    X to
    Weekly earnings                                                      2X
                                                                                  (X+(X/2))

    Active hours less than 40 hours/week (part-time)                     %           %                       %                 %

    Active hours between 40 and 48 hours/week (full-time)                %           %                       %                 %

    Active hours more than 48 hours/week (full-time plus overtime)       %           %                       %                 %

  Note: X = the local minimum wage, calculated at 45 hours per week. This row is filled
  out by the Fairwork team, before submitting it to the platform for completion.19
20   |   Fairwork South Africa Ratings 2020

 Threshold 2.2 – Actively                 form.22 Platforms must demonstrate          To be awarded a point for 3.2, the
 improves working conditions              that the contracts are accessible           platform must be able to demonstrate
                                          for workers at all times, whether           that:
 (one additional point)
                                          through the app itself or direct
                                          communication with the worker.              •   The employment status of the
 There are proactive measures to
                                          This is necessary for workers to                workers is accurately defined
 protect and promote the health and
                                          understand the requirements of their            in the contract issued by the
 safety of workers or improve working
                                          work. The contracts should be easily            platform; and,
 conditions
                                          understandable by workers, and
                                                                                      •   There is no unresolved dispute
 For 2.2, the threshold is higher,        available in the language/languages
                                                                                          about the nature of the
 involving practices that go beyond       commonly spoken by the workers on
                                                                                          employment relationship; or,
 addressing the task-specific risks       the platform.
 addressed by 2.1. This means a                                                       •   The self-employed status
 policy that goes beyond ameliorating     To be awarded a point for 3.1, the
                                                                                          of the worker is adequately
 the direct task-specific risks, by       platform must be able to demonstrate
                                                                                          demonstrated and free from
 promoting greater health and safety or   all of the following:
                                                                                          unreasonable clauses.
 improvements in working conditions,
                                          •   The contract is written in clear and
 beyond what is specified by local
                                              comprehensible language that
 regulations for employment. For
                                              the worker could be expected to
 example, an insurance policy that
                                              understand; and,
 covers workplace accidents would
 meet the threshold for 2.1, while one    •   The contract is issued in the
 that also covers the worker or their         language/languages spoken by
 family outside of work would meet            workers on the platform; and,           Principle 4:
 2.2. As policies and practices may be
 focused on the specific form of work,    •   The contract is available for
                                                                                      Fair Management
 the examples that meet the threshold         workers to access at all times.
                                                                                      Threshold 4.1 – There is due
 may vary by the type of work.
                                          Threshold 3.2 – The contract                process for decisions affecting
 To be awarded a point for 2.2, the
                                          genuinely reflects the nature of            workers (one point)
 platform must be able to demonstrate:
                                          the employment relationship                 There is a documented process
 There is a documented policy (or         (one additional point)                      through which workers can be heard,
 policies) that promotes the health and                                               can appeal decisions affecting them,
 safety of workers or improves working    The party contracting with the worker       and be informed of the reasons
 conditions, going beyond addressing      must be subject to local law and must       behind those decisions. There is a
 task-specific risks                      be identified in the contract. If workers   clear channel of communication to
                                          are genuinely self-employed, the terms      workers involving the ability to appeal
                                          of service are free of clauses which        management decisions or deactivation
                                          unreasonably exclude liability on the
                                          part of the platform                        The threshold for 4.1 involves a
                                                                                      platform demonstrating the existence
                                          The threshold for 3.2 involves the          of clearly defined processes for
                                          platforms demonstrating that the            communication between workers and
 Principle 3:                             contract issued to workers accurately       the platform. This includes access by
                                          describes the relationship between
 Fair Contracts                           the platform, the workers, and the
                                                                                      workers to a platform representative,
                                                                                      and the ability to discuss decisions
                                          users. In the case where there is an        made about the worker. Platforms must
 Threshold 3.1 – Clear terms              unresolved dispute over the nature of       be able to evidence that information
 and conditions are available             the employment relationship, a point        about the processes is also easily
 (one point)                              will not be awarded.                        accessible to workers.
 The terms and conditions are             If workers are genuinely self-              To be awarded a point for 4.1, the
 transparent, concise, and provided to    employed,23 platforms must be able to       platform must be able to demonstrate
 workers in an accessible form            demonstrate that the contract is free       all of the following:
                                          of clauses that unreasonably exclude
 The threshold for 3.1 involves           liability on the part of the platform       •   The contract includes a
 demonstrating that the terms and         for harm caused to the workers in the           documented channel for workers
 conditions of the contract issued to     course of carrying out their duties.            to communicate with a designated
 workers are available in an accessible
                                                                                          representative of the platform; and,
Labour Standards in the Gig Economy |                   21

•   The contract includes a                      determine access to work               Threshold 5.2 – There is a
    documented process for workers               or remuneration, these are             collective body of workers
    to appeal disciplinary decisions or          transparent and do not result in
                                                                                        that is recognised, and that
    deactivations; and,                          inequitable outcomes for workers
                                                 from historically or currently
                                                                                        can undertake collective
•   The platform interface features              disadvantaged groups; and              representation and bargaining
    a channel for workers to                                                            (one additional point)
    communicate with the platform;           •   It has mechanisms to reduce the
    and,                                         risk of users discriminating against   There is a collective body of workers
                                                 any group of workers in accessing      that is publicly recognised and the
•   The platform interface features              and carrying out work.                 platform is prepared to cooperate
    a process for workers to appeal                                                     with collective representation and
    disciplinary decisions or                                                           bargaining (or publicly commits to
    deactivations; and,                                                                 recognise a collective body where none
                                                                                        yet exists)
•   In the case of deactivations, the
    appeals process must be available                                                   This threshold requires the platform to
    to workers who no longer have
    access to the platform.                  Principle 5:                               engage with, or be prepared to engage
                                                                                        with, collective bodies of workers
                                             Fair Representation                        that could take part in collective
Threshold 4.2 – There is equity                                                         representation or bargaining. The
in the management process                    Threshold 5.1 – There are                  collective body must be independent
(one additional point)                       worker voice mechanisms and                of the platform. It may be an official
                                             freedom of association (one                trade union, or alternatively a network
There is evidence that the platform                                                     or association of workers. Where such
is actively seeking to prevent
                                             point)
                                                                                        organisations do not exist, the platform
discrimination against workers from          There is a documented process              can sign a public statement to indicate
disadvantaged groups.                        through which worker voice can be          that they support the formation of a
                                             expressed. There is no evidence of         collective body.
To be awarded a point for 4.2 the
                                             freedom of association being prevented
platform should demonstrate the                                                         To be awarded a point for 5.2, the
                                             by the platform. There is no evidence
following:                                                                              platform must:
                                             that platforms refuse to communicate
•   It has a policy which guarantees         with designated representatives of         •   Publicly recognise an independent,
    that the platform will not               workers                                        collective body of workers or
    discriminate against persons on                                                         trade union and not have refused
                                             The first step for the justification of
    the grounds of race, gender, sex,                                                       to participate in collective
                                             5.1 is establishing the platform’s
    sexual orientation, gender identity,                                                    representation or bargaining;
                                             attitude towards and engagement
    disability, religion or belief, age or                                                  If such a body does not exist, it
                                             with workers’ voice. This includes both
    any other status which is protected                                                     must:
                                             listening to and responding to worker
    against discrimination in local law;
                                             voice when raised with the platform,       •   Sign a public statement of
    and,
                                             as well as clearly documenting for             its willingness to recognise a
•   Where persons from a                     workers the process for engaging               collective body of workers or trade
    disadvantaged group (such as             the platform in dialogue. Workers              union.
    women) are significantly under-          should be able to freely organise and
    represented among its workers, it        associate with one another, regardless
    has a plan to identify and remove        of employment status. Workers must
    barriers to access by persons from       not suffer discrimination for doing so.
    that group, resulting in improved        This includes the freedom to associate
    representation; and                      beyond the remit of organisational
                                             spaces (for example, via instant
•   It takes practical measures to           messaging applications). 24
    promote equality of opportunity
    for workers from disadvantaged           To be awarded a point for 5.1, a
    groups, including reasonable             platform must be able to demonstrate
    accommodation for pregnancy,             that:
    disability, and religion or belief;
                                             •   There is a documented process for
    and
                                                 the expression of worker voice.
•   If algorithms are used to
22   |   Fairwork South Africa Ratings 2020

Credits and                                                                            A collaboration
                                                                                          between:

Funding
 Fairwork draws on the expertise and        Special Thanks to: Duncan Passey,
 experience of staff at the University of   John Gilbert, Katia Padvalkava,
 Oxford, the University of Cape Town,       David Sutcliffe, Eve Henshaw and
 the University of the Western Cape,        Sharron Pleydell-Pearce at the
 the University of Manchester, the          University of Oxford for their extensive
 International Institute of Information     administrative support for the project
 Technology Bangalore, and the              since its inception. Alison Gillwald
 Technical University of Berlin. Project    and Anri van der Spuy (Research
 staff work to translate our principles     ICT Africa), Trebor Scholz (The New
 into measurable thresholds, conduct        School), Six Silberman (IG Metall),
 rigorous research to evaluate platforms    Christina Colclough (UNI Global), Niels
 against those thresholds, and publish      Van Doorn (University of Amsterdam),
 our results in a transparent manner.       Anna Thomas (Institute for the Future
                                            of Work), Janine Berg (ILO), Martin
 Authors: Kelle Howson, Srujana Katta,      Krzywdzinski (WZB), and Eva Kocher
 Mark Graham, Jean-Paul Van Belle,          (European University Viadrina) for their
 Richard Heeks, Darcy du Toit, Sandy        help and guidance in this project.
 Fredman, Paul Mungai, Abigail Osiki
                                            The project team is deeply grateful
 Fairwork team: Arturo Arriagada,           to Elisabeth Hobl, Mortiz Hunger,
 Adam Badger, Maria Belen Albornoz,         and Linda Gabel for helping us to
 Alessio Bertolini, Gautam Bhatia,          launch the project, and to Shakhlo
 Maren Borkert, Sonata Cepik,               Kakharova, Kathleen Ziemann,
 Aradhana Cherupara Vadekkethil,            and Amelie Kircher at GIZ for their
 Darcy du Toit, Trevilliana Eka Putri,      continuing support and guidance as
 Fabian Ferrari, Sandra Fredman,            we take our work to the next stage.
 Mark Graham, Richard Heeks, Kelle
 Howson, Srujana Katta, Paul Mungai,
                                            We would like to thank the University        Funded by:
                                            of Oxford’s Business Engagement and
 Mounika Neerukonda, Abigail Osiki,         Partnerships Development Fund for
 Balaji Parthasarathy, Janaki Srinivasan,   supporting some of our workshops
 Pradyumna Taduri, Pitso Tsibolane,         and outreach activities. Finally, we
 Funda Ustek-Spilda, Jean-Paul Van          would like to acknowledge a very
 Belle, and Klemens Witte.                  large number of workers and platform
                                            managers in South Africa for taking
 Please cite as: Fairwork. (2020).          the time to help us build our platform
 Towards Fair Work in the South African     ratings. Their roles are understated by
 Gig Economy. Cape Town, South Africa;      a simple acknowledgement. All of the
 Oxford, United Kingdom.                    work in this project was shared not just
                                            amongst our research team, but also            Federal Ministry
 Designers: One Ltd.                                                                       for Economic Cooperation
                                            amongst the stakeholders who our               and Development
 Funders: Fairwork is financed by           ratings ultimately affect.
 the Federal Ministry for Economic
 Cooperation and Development (BMZ),
 commissioned by the Deutsche
 Gesellschaft für Internationale
 Zusammenarbeit (GIZ), and the
 Economic and Social Research
 Council through the Global Challenges
 Research Fund (ES/S00081X/1).
Labour Standards in the Gig Economy |                                            23

Endnotes
1.    Fairwork. 2019. ‘Fairwork: Labour Standards in the            Institute for Development Economics Research.                stipulates that employers shall be required “so
      Platform Economy’. Oxford, UK, Cape Town, South               https://www.wider.unu.edu/publication/racial-                far as is reasonably practicable, the workplaces,
      Africa, Bangalore, India: Fairwork Foundation.                inequality-and-demographic-change-south-africa.              machinery, equipment and processes under
                                                                    Accessed 12 March 2020.                                      their control are safe and without risk to health”,
2.    Heeks, Richard. 2019. ‘How Many Platform
                                                                                                                                 and that “where necessary, adequate protective
      Workers Are There in the Global South?’ ICTs for        11.   Uber South Africa, Uber B.V., Uber International
                                                                                                                                 clothing and protective equipment [should be
      Development (blog). https://ict4dblog.wordpress.              Holdings B.V. vs. Nupsaw Obo Herschelle Mostert.
                                                                                                                                 provided] to prevent, so far as is reasonably
      com/2019/01/29/how-many-platform-workers-                     2018. Cape Town Labour Court, C 449/17.
                                                                                                                                 practicable, risk of accidents or of adverse effects
      are-there-in-the-global-south/.Accessed 12 March
                                                              12.   Dube, Arindrajit. 2019. ‘Impacts of Minimum                  on health.”
      2020.
                                                                    Wages: Review of the International Evidence’.
                                                                                                                           22.   The ILO’s Maritime Labour Convention, 2006
3.    Combined calculations based on Heeks, Richard.                London, the UK: HM Treasury and Department for
                                                                                                                                 (MLC 2006), Reg. 2.1, and the Domestic Workers
      2017. ‘Decent Work and the Digital Gig Economy:               Business, Energy & Industrial Strategy.
                                                                                                                                 Convention, 2011 (C189), Articles 7 and 15, serve
      A Developing Country Perspective on Employment
                                                              13.   Global Living Wage Coalition. (n.d.). ‘What Is a             as helpful guiding examples of adequate provisions
      Impacts and Standards in Online Outsourcing,
                                                                    Living Wage?’ (n.d.). https://www.globallivingwage.          in workers’ terms and conditions, as well as worker
      Crowdwork, Etc’. No: 71. Working Paper Series.
                                                                    org/about/what-is-a-living-wage/. Accessed 12                access to those terms and conditions.
      SEED: Centre for Development Informatics Global
                                                                    March 2020.
      Development Institute; and Onkokame, Mothobi,                                                                        23.   ILO’s Employment Relationship Recommendation,
      Aude Schoentgen, and Alison Gillwald. 2017.             14.   See Wills, Jane, and Brian Linneker. 2012. ‘The              2006 (R198) recommends that member countries
      ‘What Is the State of Microwork in Africa? A View             Costs and Benefits of the London Living Wage’.               develop legal and regulatory frameworks
      from Seven Countries’. Paper No. 2. Policy Paper              London: Trust for London & Queen Mary: University            containing specific indicators that speak to the
      Series No. 5 After Access. https://researchictafrica.         of London;                                                   existence of an employment relationship, which
      net/2017/12/18/what-is-the-state-of-micro-work-               Ethical Trading Initiative. n.d. ‘A Living Wage for          might include:
      in-africa/. Accessed 12 March 2020.                           Workers | Ethical Trading Initiative’. n.d. https://         (a) the fact that the work is carried out according to
                                                                    www.ethicaltrade.org/issues/living-wage-workers              the instructions and under the control of another
4.    Statistics South Africa. 2020. ‘Quarterly Labour
                                                                    Accessed 12 March 2020 and Fairris, David, and               party; involves the integration of the worker in the
      Force Survey Quarter 3: 2019’. Pretoria: Statistics
                                                                    Michael Reich. 2005. ‘The Impacts of Living Wage             organization of the enterprise; is performed solely
      South Africa. http://www.statssa.gov.za/
                                                                    Policies: Introduction to the Special Issue*’.               or mainly for the benefit of another person; must
      publications/P0211/P02113rdQuarter2019.pdf.
                                                                    Industrial Relations: A Journal of Economy and               be carried out personally by the worker; is carried
      Accessed 12 March 2020. Note figures here are the
                                                                    Society 44 (1): 1–13.                                        out within specific working hours or at a workplace
      “expanded” unemployment rate, which includes
                                                                                                                                 specified or agreed by the party requesting the
      3m ‘discouraged work seekers’ who want work but         15.   Woodcock, Jamie, and Mark Graham. 2020. The                  work; is of a particular duration and has a certain
      have stopped actively looking for it.                         Gig Economy: A Critical Introduction. Cambridge,             continuity; requires the worker’s availability; or
                                                                    the UK; Medford the USA: Polity Press.                       involves the provision of tools, materials and
5.    Roodt, Marius. 2019. ‘SA’s Unemployment Crisis –
      No End in Sight’. No: 7/2019. Johannesburg: IRR:        16.   The ILO defines minimum wage as the “minimum                 machinery by the party requesting the work’;
      South African Institute of Race Relations; Webster,           amount of remuneration that an employer                      (b) periodic payment of remuneration to the
      Dennis. 2019. ‘Unemployment in South Africa Is                is required to pay wage earners for the work                 worker; the fact that such remuneration constitutes
      Worse than You Think’. New Frame, 5 August 2019.              performed during a given period, which cannot be             the worker’s sole or principal source of income;
      https://www.newframe.com/unemployment-in-                     reduced by collective agreement or an individual             provision of payment in kind, such as food, lodging
      south-africa-is-worse-than-you-think/ Accessed                contract.” Minimum wage laws protect workers                 or transport; recognition of entitlements such as
      12 March 2020; Stats SA (2019) Youth graduate                 from unduly low pay and help them attain a                   weekly rest and annual holidays; payment by the
      unemployment rate increases in Q1: 2019,                      minimum standard of living. The ILO’s Minimum                party requesting the work for travel undertaken
      Statistics South Africa. 2019. ‘Youth Graduate                Wage Fixing Convention, 1970 C135 sets the                   by the worker in order to carry out the work; or
      Unemployment Rate Increases in Q1: 2019’. 15                  conditions and requirements of establishing                  absence of financial risk for the worker’.
      May 2019. http://www.statssa.gov.za/?p=12121.                 minimum wages and calls upon all ratifying             24.   See the ILO’s Freedom of Association and
      Accessed 12 March 2020.                                       countries to act in accordance. Minimum wage laws            Protection of the Right to Organise Convention,
                                                                    exist in more than 90 per cent of the ILO member             1948 (C087), which stipulates that “workers and
6.    Giddy, Julia Kathryn. 2019. ‘The Influence of
                                                                    states.                                                      employers, without distinction, shall have the right
      E-Hailing Apps on Urban Mobilities in South Africa’.
      African Geographical Review 38 (3): 227–39.             17.   According to the ILO’s (2018) report on “Digital             to establish and join organisations of their own
                                                                    Labour Platforms and the Future of Work”, for                choosing without previous authorisation” (Article
7.    See for a summary: Woodcock, Jamie, and Mark                                                                               2); “the public authorities shall refrain from any
                                                                    every hour of paid work, workers spend 20 minutes
      Graham. 2020. The Gig Economy: A Critical                                                                                  interference which would restrict the right or
                                                                    on unpaid activities, including, for example,
      Introduction. Cambridge, the UK; Medford the USA:                                                                          impede the lawful exercise thereof” (Article 3)
                                                                    searching for tasks and researching clients. In
      Polity Press, page 2.                                                                                                      and that “workers’ and employers’ organisations
                                                                    order to account for this additional time spent on
8.    IMF. 2020. ‘Six Charts Explain South Africa’s                 searching for work, as well as time spent between            shall not be liable to be dissolved or suspended by
      Inequality’. (blog). 30 January 2020. https://                work tasks, we define ‘working time’ as including            administrative authority” (Article 4). Similarly the
      www.imf.org/en/News/Articles/2020/01/29/                      both direct (completing a task) and indirect                 ILO’s Right to Organise and Collective Bargaining
      na012820six-charts-on-south-africas-persistent-               (travelling to or waiting between tasks) working             Convention, 1949 (C098) protects the workers
      and-multi-faceted-inequality. Accessed 12 March               hours.                                                       against acts of anti-union discrimination in respect
      2020.                                                                                                                      of their employment, explaining that not joining
                                                              18.   The “+1” is one unit of the lowest denomination of           a union or relinquishing trade union membership
9.    Webster, Dennis. 2019. ‘Why SA Is the World’s                 the currency, to ensure a boundary between the               cannot be made a condition of employment or
      Most Unequal Society’. New Frame, 19 November                 two figures.                                                 cause for dismissal. Out of the 185 ILO member
      2019. https://www.newframe.com/why-sa-is-the-                                                                              states, currently 155 ratified C087 and 167 ratified
                                                              19.   The table contains four columns of data. The first
      worlds-most-unequal-society/. Accessed 12 March                                                                            C098.
                                                                    is the percentage of workers earning less than the
      2020.
                                                                    minimum wage (2X). The rows represent less than
10.   Oosthuizen, Morné. 2019. ‘Racial Inequality and               full time, full time, and full time with overtime.
      Demographic Change in South Africa’. Research
                                                              20.   Taxes are not considered to be a work-related cost.
      Brief No: 5/19. SA-TIED: Southern Africa - Towards
      Inclusive Economic Development. Helsinki:               21.   The starting point is the ILO’s Occupational
      UNU-WIDER: The United Nations University World                Safety and Health Convention, 1981 (C155). This
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