Only three e-commerce platforms have minimum wage policy: study

Fairwork principles like Fair Pay, Fair Conditions, Fair Contracts, Fair Management and Fair Representation were examined by drawing on desk research and worker interviews conducted in Bengaluru, Delhi, Kochi, and Thiruvananthapuram, and from evidence provided by these platforms

October 30, 2023 10:24 pm | Updated 10:24 pm IST - New Delhi

The fifth annual study conducted across 12 e-commerce platforms by Fairwork India, presents a grim picture of working conditions for India’s gig workers. Fairwork is a team of researchers part of International Institute of Information Technology, Bangalore’s Centre for IT and Public Policy.

Minimum wage

Only three platforms Bigbasket, Flipkart, and Urban Company had a minimum wage policy to ensure all workers earn at least hourly local minimum wage after factoring in work-related costs, the study said. No platform provided sufficient evidence that workers earn at least the local living wage after work-related costs.

This year, the study’s theme is worker alienation. The study has examined how working conditions lead to alienation, which is intertwined with discrimination workers face due to caste, class, gender, and religion. The research has found that only two companies, BluSmart and Swiggy, institutionalised conduct of regular, external audits to check for biases in their work allocation systems, in addition to adopting policies against discrimination.

Five Fairwork principles such as Fair Pay, Fair Conditions, Fair Contracts, Fair Management and Fair Representation were examined by drawing on desk research and worker interviews conducted in Bengaluru, Delhi, Kochi, and Thiruvananthapuram, and from evidence provided by these platforms. “Based on the scores and findings, some platforms have already expressed an interest in creating fairer working conditions for their workers,” the researchers said in a statement. “Consumers can use these scores to make informed decisions about which platforms to use,” they added. Two platforms – Ola and Porter – did not receive any points under the five principles.

Unions discouraged

No platform received points for Fair Representation. “It is disconcerting that despite the rise in platform worker collectivisation across the country over the past four years, there was insufficient evidence from any platform that showed a willingness to recognise a collective body of workers,” the study said.

Amazon Flex, bigbasket, BluSmart, Flipkart, Swiggy, Urban Company, Uber, Zepto and Zomato gained points in the survey for providing adequate safety equipment and periodic safety training for their workers.

Only bigbasket, Swiggy, Urban Company, Zepto and Zomato provide accident insurance cover at no additional cost to workers along with monetary compensation for income loss due to accidents or medical reasons.

While seven companies ensured accessibility and comprehensibility of their contracts with a protocol for data protection and management of worker data, five companies adopted a clause that sends prior notifications to employees when there is a change in contracts. Five companies also took measures to reduce worker liability by compensating workers for losses due to app malfunctions. Five companies provide due process in decisions affecting workers, and channels for workers to appeal disciplinary actions.

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