A new report has revealed that more than half of gig economy workers in the UK are paid below the minimum wage, as the cost of living continues to rise. The study, led by the University of Bristol, found that 52% of gig workers in jobs ranging from data entry to food delivery were earning less than the minimum wage. The average hourly rate reported was £8.97, which is approximately 15% lower than the current UK minimum wage of £10.42. Additionally, 76% of the survey respondents experienced work-related insecurity and anxiety.
The study involved 510 gig economy workers who were surveyed last year, with representation from across the sector. Respondents overwhelmingly considered their work self-employment and thought extending labor rights to include the self-employed would significantly improve their working lives. Basic rights such as minimum wage rates, holiday and sick pay, and protection against unfair dismissal were the most requested improvements.
More than a quarter of respondents also felt that they were risking their health or safety while doing gig work, and a quarter experienced pain on the job. The findings suggest that the self-employed who are dependent on platforms to make a living are urgently in need of labor protections to shield them against the huge power asymmetries that exist in the sector. The study recommends the expansion of the current ‘worker’ status to protect them.
Respondents spent on average 28 hours a week undertaking gig work, which comprised 60% of their total earnings. Respondents overwhelmingly supported the creation of platform councils, similar to works councils in some European countries, to represent their needs and help influence how gig economy platforms operate and affect their working conditions. The study suggests that introducing such bodies would bring immediate benefits to the sector.
The findings also suggest strong support for European-style co-determination, whereby worker representatives are consulted on and approve changes that impact working conditions and employment. Works councils that exist in countries like Germany could therefore provide a model for platform councils and assemblies in the gig economy to facilitate workers having a say over the decisions which affect their ability to make a living.
