the gig is up on 21st-century exploitation
The Illusion of Innovation in the Gig Economy
The contemporary app-based, or “gig,” economy is often presented as a symbol of “modern innovation” and the future of employment. However, this portrayal masks a more troubling reality.
A History of Precarious Work
The concept of unstable, contingent work is not novel. Throughout history, jobs characterized by low wages, insecurity, and devaluation have existed. Systemic racism and a long-standing exploitative economic structure have consistently resulted in a disproportionate concentration of workers of color within the most detrimental industries.
The primary distinction today lies in the assertion by companies such as Uber, DoorDash, and Instacart that they are exempt from standard regulations due to their utilization of digital applications for workforce management.
Exploitation Under the Guise of Technology
Despite the fact that many of these technology companies remain unprofitable, they have been permitted to evade responsibility for providing secure and equitable working conditions for an extended period. This impacts workers’ well-being both on and off the job.
The challenges faced by gig and app-based workers, who are predominantly people of color, are frequently framed as a contemporary issue. However, to progress towards a just economy, it is crucial to draw lessons from the past.
Historical Exclusion of Workers
The federal government has historically failed to adequately address widespread worker exploitation. Following the enactment of the National Labor Relations Act, occupations like agricultural and domestic work – largely populated by workers of color – were specifically excluded from labor rights and protections.
Today’s “independent contractors,” who are also largely workers of color, find themselves in a similar position of exclusion from essential labor laws. Black and Latinx workers constitute less than 29% of the national workforce, yet they represent nearly 42% of those employed by app-based companies.
The Argument for Independence
Gig companies maintain that their drivers, delivery personnel, and other workers are essentially millions of small businesses that do not require fundamental benefits and protections. This argument serves to absolve them of responsibility for their frontline workforce.
Consequently, corporations avoid incurring costs associated with a minimum wage, healthcare, paid sick leave, workers’ compensation, and other vital employee benefits. These conditions contribute to the proliferation of inequality and perpetuate a flawed economy founded on worker exploitation.
A Broader Trend of Corporate Power
App-based companies represent a larger, more concerning trend. Over the past four decades, federal policies have diminished worker bargaining power and concentrated authority in the hands of corporations and the wealthy.
This has exacerbated racial wage and wealth disparities and contributed to the ongoing deterioration of working conditions for many individuals.
Demanding Fair Treatment
To construct an economy that benefits everyone, “gig” and app-based companies must not be permitted to exploit their workers under the pretense of “innovation.” While these companies claim their workers desire to remain independent contractors, the reality is a demand for fair pay, job security, flexibility, and full rights under federal law.
This is a reasonable and just expectation, essential for closing long-standing gender and racial wealth gaps.
Combating Misinformation
App-based companies are investing heavily in promoting policies that sustain their exploitative labor model. Uber, Lyft, DoorDash, Instacart, and similar companies are actively disseminating misinformation to state legislatures, city councils, and federal offices.
Elected officials at all levels must recognize these policies as corporate attempts to rewrite laws in their favor and reject the interests driving these changes.
The Need for Legislative Action
Congress must also reject exclusions that deny people of color basic employment protections and enact legislation to extend protections to all workers, including those in the app-based sector. The PRO Act represents a positive initial step, expanding bargaining rights to workers misclassified as “independent contractors.”
Worker Organization and Advocacy
App-based workers across the nation are organizing to safeguard their health, safety, and rights. Elected leaders must resist corporate propaganda promoting a false narrative of a “21st-century” work model.
Work in the 21st century remains work, and work organized through an application is still fundamentally work.
We urge Congress to acknowledge the labor rights and protections of all workers and to act decisively to prevent app-based companies from obstructing workers’ access to equal rights in the name of “flexibility” and “innovation.”