A Call for Evolution in the Gig Economy

Vikrum Aiyer, formerly the vice president of global public policy and strategic communications at Postmates, has issued a memo to industry peers and stakeholders detailing his vision for the future of the gig economy.

Aiyer argues that superficial adjustments to worker classification, or the success of a single state-level ballot initiative, will not establish a lasting solution to the concerns of American workers. These concerns center around securing employment, supporting families, and achieving financial stability.

The Need for Collaborative Progress

He observes that both technology platforms and labor organizations appear unwilling to compromise on their existing operational models. This inflexibility, according to Aiyer, hinders the possibility of advancements that simultaneously empower on-demand workers and strengthen the social safety net.

Aiyer advocates for an end to the contentious conflict that divides workers and investors, technology companies and labor unions, and differing political ideologies.

Recommendations for On-Demand Companies

Within his letter, Aiyer presents several recommendations for companies operating in the on-demand technology sector.

• He proposes granting workers voting rights through representation on company boards.
• He suggests adopting portable benefits systems “designed to bridge the disparity in benefits available to W2 employees and independent contractors.”
• He also explores the potential of sectoral bargaining specifically tailored for gig workers.

Despite his previous support for California’s Proposition 22 – which classified gig workers as independent contractors – Aiyer does not believe a nationwide replication of this model is desirable.

Beyond Proposition 22

Aiyer clarified to TechCrunch that while Proposition 22 represented progress in balancing worker flexibility with enhanced benefits for those classified as 1099 contractors, further considerations are essential to chart a comprehensive path forward.

He highlights two key factors. First, on-demand work has gained significant traction, particularly in the wake of widespread job losses caused by the COVID-19 pandemic. Second, it is crucial to actively solicit input from workers when developing similar legislation at either the state or federal level.

Aiyer illustrates this point by contrasting the needs of Postmates couriers in Los Angeles, who primarily use cars, with those in New York City, who frequently rely on bicycles. The insurance standards established by Proposition 22 may not adequately address the requirements of those utilizing alternative transportation.

“Proposition 22 set a baseline for California, but it should not be considered the ultimate standard for broader safety net reforms or a national policy framework,” he stated.

The Desire for Employee Status

However, some gig workers have consistently expressed a preference for employee status, even if it means foregoing certain benefits associated with independent contractor roles. These workers seek the full spectrum of benefits typically afforded to W-2 employees.

Aiyer believes the current framing of the debate – a choice between employee benefits and independent contractor flexibility – is a false dichotomy.

A Hybrid Approach

“Why not offer both a traditional W-2 employee model and simultaneously elevate the standards for independent work, providing enhanced benefits for both categories?” Aiyer questioned. “Achieving this requires a renewed dialogue involving workers and labor advocates, a conversation that has largely stalled since the implementation of AB 5.”

Aiyer, having concluded his tenure at Uber-owned Postmates in early January, expressed his hope that his letter will stimulate renewed discussions among stakeholders in the gig economy. He intends to dedicate his future professional endeavors to public interest work.