Fairwork Ratings: Will formalising the gig economy help improve workers’ conditions?
In this year's Fairwork Bangladesh report, 11 prominent online labour platforms were reviewed and scored. Five platforms, however, received no points at all
In 2021, when the first Fairwork Bangladesh report came out, only four of the 10 platforms scored one out of 10, the highest. This year, two platforms scored five out of 10, one company got four, and three companies were awarded one point each.
This is a clear improvement, and considering the 2022 scores, it is evident that the improvement is gradual, and not a fluke.
In this year's Fairwork Bangladesh report, 11 prominent online labour platforms were reviewed and scored. Five platforms, however, received no points at all.
Under the report titled 'Is Bangladesh Ready for a Policy and Regulatory Framework for Platform-Based Workers,' Daraz, Sheba, HelloTask, Chaldal, Pathao, Uber, Delivery Tiger, Foodpanda, Obhai, Paperfly and Truck Lagbe were assessed.
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Considering that the number of workers involved in online-based business platforms has now grown to over one million, many think this progress is not enough, and the workers on these platforms experience low wages, poor conditions, and a lack of job security because online gig works are not recognised by the labour laws.
Online entrepreneurs, of course, are in favour of allowing more time for this relatively new industry before bringing it under tough regulations.
Asif Ayub, joint-secretary general of Bangladesh Employers' Federation (BEF), and joint secretary-general at the Metropolitan Chamber of Commerce and Industry, Dhaka, thinks the rating is an eye opener.
"Through these ratings, we know where our lackings are, and where we can improve. The gig economy is a new and growing sector; if we take the ratings seriously at this initial stage, this will be beneficial for all of us in terms of future market expansion of this sector," Asif said.
"The ratings are still low because this sector falls under the informal economy. We don't have any regulation, [or] any policy framework for the gig economy. But the government is working on it and developing policy for it," he continued.
The MCCI official opined that it would be wrong to say this sector is non-compliant at this stage. "It will become compliant when we will have a guideline, a set rule to follow," Asif added.
Dr Wajedul Islam Khan, joint secretary general of the Bangladesh Institute of Labour Studies (BILS) agreed that the absence of a regulatory body is the main cause of poor facilities enjoyed by gig workers.
"In the wake of the fourth industrial revolution, the world will see more and more online-based businesses and services. So, a regulatory body must watch over these platforms' activities," he said.
"The other day, my wife ordered eggs from an online platform. When the delivery man came, she found that the eggs were smaller than advertised. She refused to take them. The delivery man pleaded that if she didn't buy the eggs, the company would deduct the price from his salary," Wajedul Islam recounted.
"You don't want the eggs, and you don't want the poor delivery man to suffer either. Who would control such events?" he posed a question, highlighting the need for bringing the sector under regulation.
The ratings' Principle 3: Fair Contracts has the provision for an additional point, which stipulates that workers should not carry a disproportionate amount of risk for engaging in a contract with the service user.
None of the assessed companies got this additional point. Only three top-scoring platforms were awarded the first point in this principle: terms and conditions were clear, transparent and accessible.
The points are awarded against five principles, namely, fair pay, fair conditions, fair contract, fair management and fair representation.
In Bangladesh, the platform economy started to expand in 2016 with the arrival of Uber. Since then, digital labour platforms have emerged in many major industries including transportation, food and grocery delivery, and domestic work.
One of the top scorers of this year's ratings is Sheba, a Bangladeshi platform providing home-based services primarily related to repair, maintenance and beauty-care services.
Ilmul Haque Sajib, COO and co-founder of this platform told TBS that the online platforms are working to improve work conditions and ensure workers' welfare.
"I appreciate that all the platforms are putting efforts into the gig economy for its betterment. We all know that the business will prosper when the workers perform well. So, everyone should pay attention to improving their conditions," he said.
Ilmul agreed that there should be guidelines for this sector in the long run but it needs some space at this moment.
"Since this industry is in the growing phase, applying strict laws to it might hamper its growth. Instead, we should focus on the challenges revealed by the Fairwork report, and figure out how to solve them," said the COO.
The Sheba COO explained that income depends on one's skills. If a gig fetches Tk10 for an hour of work, the worker cannot be paid Tk20. So, the law cannot help increase the earnings of the worker because it does not support the business in doing so.
Rather, he said, the platforms should focus on improving workers' skills. Workers also need the right tools. If they can be supported with loans or other processes to get the right tools, that will be helpful.
Ilmul also emphasised the adoption of technology. He said necessary training and education should be provided to the workers.
"The government or the association has to work closely with the platforms because the latter has the experience and knowledge on where the skills need to be improved. This way, we'll get the proper result," Ilmul Haque Sajib opined.
Sheba was awarded points for the principles of fair pay, contract management and representation this year.
The co-founder of the platform said that from the very beginning, their goal was to solve the problems of the service providers working for the platform.
"When you solve the problem of the service provider, it solves the problem of the customer, and the business succeeds automatically," Ilmul shared his insight.
To solve a problem, one has to have the knowledge of it. Sheba established easy communications between the service providers and management officials by making the latter's phone numbers available, plus by holding monthly 'town halls' where service providers can voice their concerns and raise their issues.
While opinions on bringing the gig economy under labour law are divided, Hazera Khatun, joint secretary (Labour Section) at the Ministry of Labour and Employment informed at the report launching ceremony that the online-based workers have been recognised in the draft revised labour law. She however mentioned that it is not final till the law is passed.
Daraz scored five out of 10 for ensuring fair pay, conditions, contracts and management. HelloTask was awarded a score of four, while Chaldal, Pathao and Uber scored one, respectively.
