Berliner Boersenzeitung - World's first gig economy treaty adopted at the ILO

The Decent Work in the Platform Economy Convention is aimed at extending labour protections to hundreds of millions of people worldwide who work through digital platforms, in areas like food delivery and car services.

The convention applies to "all digital labour platforms" and "all digital platform workers... whether they are in the formal or informal economy", according to the text adopted by ILO members.

Until now, labour practices have struggled to keep pace with the dramatic shifts in the way people work.

The World Bank estimated in 2023 there were up to 435 million online gig workers around the globe who had largely fallen outside regular labour protections.

Companies behind the apps control the gig work via algorithms that assign tasks, set pay, evaluate performance and even fire workers.

Despite largely controlling the tasks and pay, the platforms typically classify the workers as independent contractors rather than employees.

This allows them in many cases to ignore things like minimum wage requirements, workplace safety and access to social security.

"The ILO now has the first convention that focuses on the impact of digitalisation in the world of work," said the UN labour agency's chief Gilbert Houngbo.

- 'Major step forward' -

"This convention seeks to bring about tangible improvements in the lives of millions of workers around the world," Brazil's representative said at the adoption.

In Brazil, "around two million workers will see their opportunities, dignity and autonomy strengthened by this convention", she added.

Other countries, such as India, Bangladesh and the United States felt that the convention should be applied flexibly, depending on national contexts.

"We continue to urge extreme caution with respect to prescriptive binding regulations in fast-evolving areas of the economy," said the US representative Lorenzo Riboni.

Independent contractors control their own work and "lean into an entrepreneurial spirit that makes America great", he said.

The International Trade Union Confederation said the convention would help ensure that millions of platform workers can enjoy the rights, protections and dignity that all workers merit.

"This convention represents a major step forward," the ITUC's political director Jeroen Beirnaert told AFP.

He underlined, however, that the convention allows countries "to provide for certain limited exclusions from its scope".

Therefore, "there is a risk that certain categories of workers will be excluded", he said, but countries that choose to apply such exclusions would have to justify them.

The ITUC urged governments to ratify the convention quickly, saying the future of work had to be built on rights rather than precariousness.

The convention comes into force in member states 12 months after they ratify it, so long as two countries have ratified the text.

- Pay and social security -

Among other things, the convention calls on countries to ensure that gig workers are guaranteed fair pay and access to social security protections "on terms no less favourable than those applicable to other workers with the same classification of status in employment".

Countries should also ensure that digital labour platforms provide workers with "timely, verifiable and easily understandable information on the terms and conditions of their employment or engagement".

"Platform companies have built a business model that sidesteps labour protections and shifts risks and costs onto the workers," said Human Rights Watch's senior economic justice advisor Lena Simet.

The convention marks "a turning point for platform workers", setting "the first global standard to protect their rights and hold digital labour platforms accountable", she said.

The convention was adopted at the 114th annual International Labour Conference in Geneva.

The ILO is unique in the United Nations system in that its 187 member states are equally represented by governments, employers and workers.

(F.Schuster--BBZ)