The modern world promotes hybridity, flexibility and convenience by creating structures that allow easy access to goods and services. The digital economy, and in particular the platform economy, has significantly affected our daily lives. Although the use of platforms and applications is convenient, working in this sector comes with many challenges. They concern a social group called the precariat, that is, people who work in unstable conditions.
The use of digital technologies by platforms, technology entrepreneurs and users is today a driver of economic growth, which has a significant impact on the labour market and employment conditions. Before discussing the experiences of the precarious group, it is worth introducing some key concepts related to the digital economy.
Digital economy
The digitalisation of the labour market has introduced new concepts that clarify various aspects of this field. The digital economy is a broad concept, encompassing all economic models that use digital technologies. It consists of:
- Platform Economy: An economic model based on digital online platforms that connect product and service providers with consumers (e.g. Uber, Airbnb).
- Gig Economy: A segment of the platform economy in which work is based on single or short-term orders (e.g. Upwork).
- Economy of online platforms: Part of the digital economy that focuses on networked platforms that enable commerce, communication or other online services. It includes platforms such as Amazon, eBay, or Allegro.
The forms of these economies are familiar to any of us who use applications such as Uber, Glovo or Airbnb. Platforms with which we can order a ride, eat or make a short-term rental are very popular today and often become synonymous with comfort and even a certain independence. Digitization has made it increasingly rare for us to directly confront those who provide services or products, as applications allow you to configure contact preferences or allow you to complete the entire online purchase process. At the same time, such applications eliminate from the market traditional intermediaries, behind which a real institution stands. The most emblematic example is the displacement of taxi companies by Uber or Bolt. So, on the one hand, we have the direct connection of suppliers and recipients, and on the other hand, we can easily change the settings for the actual contact. The exclusion of traditional intermediaries has its consequences: as well as the convenience of using applications such as Uber is known to us, so are the controversies associated with this company, such as precarious working conditions, the lack of legal control (regarding both passenger safety and local transport regulations) or the destabilization of local transport companies.
Precariat: a new working group
Unprecedented changes in the use of new technologies in the economy have contributed to the emergence of a new society. Increasingly, we talk about the lack of stability, while valuing freedom and independence, especially at work. Digitalization has had a strong impact on the economy, resulting in the emergence of a new social class, called the precariat. The term comes from the English words “precarious” and “proletariat” (working class — today referred to as the class working in bad, unstable conditions).
This group consists of people working in the so-called precarious conditions, which are characterized by:
- low and irregular pay,
- job insecurity (lack of job and income stability)
- limited access to social security,
- limited representation of collective interests.
These characteristics can be compared with the forms of labor market flexibility highlighted by the Institute of Labor and Social Affairs in its report on the unified employment contract (2022):
- Flexibility of employment,
- flexibility of working time,
- Flexibility of wages,
- Flexibility of labor supply.
Those most at risk of working in precarious conditions are young people entering the labour market, people with a lower level of education, immigrants and workers in the creative sector. Studies of temporary work platforms showed that 42% of them were 18—29 years old, and another 39% were in the 30—49 age range (Dependence and Precarity in Platform Economy, 2020).
Additional characteristics of precariousness include the lack of safety and health at work and the lack of opportunities for professional development, which prevents promotion. One of the main problems of the precariat is working on contracts, which often do not guarantee protection against dismissal, do not regulate working hours or provide for the right to leave. Although in Poland this situation has improved somewhat, still contract and work contracts provide little stability and security. This makes the problem of precariousness not only a labor market issue, but also a social problem in which this group of workers is marginalized.
Uber's example shows that the platform is theoretically only an intermediary sharing driver and customer data, allowing a ride to be carried out as a transaction between parties. In practice, however, Uber is mainly treated as a data provider rather than a formal employer. Drivers work in a system where their work depends on customer recommendations, unregulated working hours and dynamic ride prices, which significantly affects their income. This problem becomes especially serious for people for whom Uber is the main source of income, and not just a casual job.
The myth of labor flexibility is partially refuted by the statements of participants in the Theory and Society study (Dependence and Precarity in Platform Economy, 2020):
Uber... in a way forces people to... They say you don't have to be online at certain times, but if you don't accept certain rides, your acceptance rating drops... They require at least a 95% acceptance rate. If you fall below 95%, you may be deactivated... This applies not only to acceptance rates, but also to cancellation of rides. Even though they say you have every right to cancel your ride... When they have excess drivers or want to get rid of bad drivers... they have the right to remove you.
Uber is a symbol of this situation, which can be applied to other forms of collaboration on platforms, such as work in cultural institutions on a B2B basis or a work contract.
To paint a complex picture of the platform's work, it's worth looking at data collected by World Development Perspectives 34 (The Gig Economy: The Precariat in a Climate Precarious World, 2024) on couriers from companies like Uber.
Reasons why drivers choose to work on the platform:
- Comfort and flexibility — 64%
- Job appropriate to personal skills and interests — 39.3%
- Jobs available to all, regardless of gender and age — 32.3%
- Safe and clean working conditions — 12%
- Because I didn't find another job — 9.3%
Although most drivers choose this job because of its flexibility, it is worth paying attention to a rarely chosen aspect, which is work safety. It is also important that initial optimism about work flexibility may not hold over time.
The economy of online platforms and OSH
Three entities participate in the work of the platform: the person using the service, the person performing the service and the platform making it available. The presence of an additional entity in comparison with the traditional model causes the problem of determining responsibility for labor safety. The platform is often not treated as a formal employer, which makes them not covered by its health and safety regulations. In a study commissioned by the European Union in 2017, it was shown that 25% of workers who depend on the platform, that is, those for whom earnings from the platform account for the majority of income, are in a much worse situation than those who work casually on the platforms („Moderate Beneficiaries”) or use them occasionally („random netizens”). Platform dependents earned an average of 43% less than „Moderate Beneficiaries” and 62% less than „random internet users”. The earnings of these employees often depend on orders or rewards, which is especially noticeable in creative works. Since the platform is not a classic workplace, there is no way to resolve disputes when the client is not satisfied with the results, which deprives employees of the guarantee of earnings for the work done. In this way, the rules of labor safety are violated, and working people are deprived of social security.
A study conducted by ISSA (International Social Security Association) in 2021 found that:
- 40% of online platform employees have health insurance,
- Less than 15% have work or unemployment insurance,
- About 20% are insured for old age,
- For employees of on-site platforms, just over half have health insurance,
- Less than a third have protection in the event of an injury at work,
- Fewer than one in five have pension insurance.
Moreover, in the digital economy, there is often a lack of training in occupational safety. According to CIOP-PIB (Central Institute of Labor Protection - State Research Institute, 2021), the negative effects are due to the lack of legal and organizational norms, the coordination of work by algorithms focused on maximizing efficiency bypassing the principles of occupational health and safety, and the presence of specific psychosocial factors shaped by algorithms.
Another interesting aspect in the context of OSH is the comparison of platform work with the potential exposure of employees to climate change. A study published in the journal World Development Perspectives (2024) presents, among other things, the experiences of drivers related to the impact of climate change on their health. One of the quotes points to the health effects caused by the heat and the lack of protection on the part of the employer, resulting from the lack of formal status of the employee.
This year's hot season is special, which makes me sweat all the time and feel exhausted due to dehydration. Combined with air pollution and noise, lack of shade and greenery on the streets, I am often exhausted [...]. Still, if I get a heat stroke, I can't call them [the platform company] for help. If I call to tell you about my health, I will bring trouble on myself, and they will not respond responsibly, because I am their “service partner”, not an “employee” (Male, 46 years old, motorcycle driver, June 20, 2020).
Although the study was conducted in Vietnam, the context of rising temperatures is equally relevant in Europe. In connection with the growing need to protect workers from high temperatures, the Ministry of Family, Labor and Social Policy is preparing changes to the rules for working in hot weather. In July this year, the Ministry issued information package under the name A Good Climate at Work, which is a tool that serves as a mini guide to the legal aspects of working at high temperatures. At the beginning of the package we can read the statement of Ministry Agnieszka Dziemianowicz-Bąk:
The law must follow the changes that are taking place, including climate change. This also applies to the regulations that apply to our workplaces. We need regulations that comprehensively protect workers from the negative effects of high temperatures. Work must be safe and the health and life of employees protected.
For precarious workers, this is an important step that positively affects their situation, however, more detailed regulations on employment are still necessary, since it is the form of the contract that determines how the work is treated and the status of the person performing it.
European level: regulations and initiatives
The European Union has introduced the Digital Services Act (Digital Services Act, DSA), which regulates the safety of users on the Internet and the responsibility of online platforms. In Poland, a draft law is being prepared to implement these provisions into national law. The act is part of the broader 'Europe for the Digital Age' plan, which aims to harmonise rules for digital services across the EU, improve user safety and increase the accountability of platforms.
At EU level, there is also the EU Observatory on the Economy of Online Platforms, which monitors and analyses trends in this area. On the basis of the data collected, the European Commission formulates a policy on:
- Algorithms used by platforms
- access to data,
- rules on remuneration for content displayed on the Internet,
- Internet advertising,
- equal treatment of business users competing with the platform,
- limits imposed on business users on distribution conditions,
- potential negative effects for users of the platforms.
summary
The precariousness of the digital economy is exposed to uncertainty: despite the convenience, flexibility and earning opportunities that platforms offer, employment remains unstable and often lacks adequate OSH protection. However, properly implemented policies and regulations can significantly improve the working conditions of people employed in the digital economy, contributing to greater stability and security.
Sources
https://link.springer.com/article/10.1007/s11186-020-09408-y
https://www.sciencedirect.com/science/article/pii/S245229292400033X
https://www.issa.int/analysis/platform-workers-and-social-protection-international-developments
https://m.ciop.pl/CIOPPortalWAR/file/91914/20210407104952&BP_3_2021_10_14.pdf
https://www.prawo.pl/kadry/kiedy-maksymalna-temperatura-zostanie-uregulowana-w-prawie,528300.html
https://www.gov.pl/web/cyfryzacja/akt-o-uslugach-cyfrowych-digital-services-act
https://digital-strategy.ec.europa.eu/pl/policies/eu-observatory-online-platform-economy
https://czasopisma.bg.ug.edu.pl/index.php/maes/article/view/3911/3263
https://www.gov.pl/web/rodzina/dobry-klimat-w-pracy
