With the European Commission set to adopt their proposal for a Directive on improving working conditions in platform work on December 8, the issue of the gig economy and platform work has been brought into focus.
This imminent adoption of a proposal for legislation also underlines the lack of understanding that exists towards the sector and the positive impact that the Platform Economy has for individuals and businesses, as well as the economy and the broader society. These realities are often lost behind the negative headlines and one-sided image spread by groups that want to discredit the Platform Economy movement which is experiencing exponential growth.
What’s in a name?
In the European Commission proposal “digital platform work” is defined broadly and covers services that are provided – at least in part – through electronic means.
Although it is difficult to put exact figures on the size of the Platform Economy in Europe, a COLLEEM II survey data found that an average of 11% of the adult population has performed platform work at least once. This figure is accepted by the European Institutions. Those who rely on platform work for their main income are currently far fewer, however. Based on the findings of different studies this is between 1% and 5% of the adult working population in Europe. The European Commission estimated this to be worth €14 billion to the EU economy in 2020 and some researchers calculate that 30-50% of the European population could be involved in some form of platform work by the end of the decade.
The Platform Economy has grown rapidly during the COVID-19 pandemic and can also boast a number of advantages from supporting the European Single Market, facilitating self-employment and helping to combat the black economy, to addressing housing, overcrowding issues and environmental concerns. In addition, the labor market in Europe is changing. Flexibility and workers deciding over their own time are increasingly important elements as more workers shun the traditional 9 to 5 model.
Getting the approach right
Regarding the proposal for EU legislation, it is clear that a one size fits all approach will not work across all countries in Europe. Different regimes will be needed across the European Union to reflect national sentiment and local rules while allowing the Platform Economy to flourish. An ultra-liberal free-for-all will not be possible or welcomed in Europe: it will be crucial that workers’ rights, social protection and the quality of jobs available are addressed. Similarly, the platforms themselves will need to pay taxes, take responsibility and engage in human contact with workers. Understanding this paradigm – and adapting to it – is important for the success of the Platform and Gig Economy as a whole in Europe.
Similarly, it is vital that we do not stifle the growth of a new economic sector. It is crucial that companies work with legislators to establish a new approach to defining “employers” and “employees”; as well as adopt an industry-wide Code of Conduct, ensure a level playing field and avoid a two-tier society. It is equally vital that the rules of the road are established to ensure algorithmic transparency: platforms must take responsibility and control the systems they use while upholding security and privacy.
The European Commission, European Parliament and national politicians need to enter into a dialogue with platforms, dedicated trade associations and gig workers in order to harness the power and potential of this wave that is transforming the world of work and the potential that is being created for European citizens. We have a golden opportunity in our hands: let’s not waste it. The future of work and European prosperity depends on us taking the right path.
