When most people think of the “gig economy”, they tend to think of the big companies behind them, Uber, Menulog, Foodora etc. In fact, many investors discuss the ‘success stories’ behind these companies as business models to replicate.
However, the grim reality of the boots on the ground contractors for these giants is, they are at the bottom of the food chain and are open for exploitation.
Significant research has contributed to an increasing understanding of the worker exploitation embedded in these company structures.
“the gig economy is not one homogenous industry with a uniform business model.”
Freelancer.com CEO Matthew Barrie
What is often missed in public discussion is the vulnerability of other ‘Gig economy’ workers: the digital platform worker. At SMLS, we have many clients who find work through Gumtree, Airtasker and Facebook, and are typically working as drivers, cleaners, carers and trades people.
Abdul’s* Story
Sam* was a principle contractor on a housing estate construction site. He advertised on gumtree for temporary labourers. Abdul replied to the Gumtree post and Sam engaged him to undertake a large plastering job. He also required Abdul to have an ABN. Sam promises Abdul $350/day for the job. Abdul also asked his friend to work as well, as it was a two person job.
Abdul was paid on the first 2 days, however once the job finished, he wasn’t paid for the final 4 days of work. Abdul then couldn’t pay his friend either.
*Name has been changed
The typical sub-sub contractor is one of the most vulnerable workers in the country. Often a they face barriers finding work through more traditional systems, such as language, visas, or generational poverty. This vulnerability is exploited, in a manner that has been defined as modern day slavery.
An additional challenge that digital platform workers face is the lack of paper trail, and often their employers’ full names and identities remain unknown. This makes it difficult for CLC’s to assist in getting back the money owed to the workers, and almost impossible for the worker to do it themselves.
At SMLS we assist the unpaid contractors with letters of demand, and applications to VCAT. In most instances the principle contractor does not bother to turn up to the VCAT hearing, and our clients successfully obtain an order against them. However this does not automatically mean that our clients get paid! They have to chase the contractor through the legal system and often clients are unable to enforce the order and are left without their money and with diminished faith in our legal system.
What our service and many others would like to see is that these forgotten gig economy workers are included in any new regulations that emerge in Victoria. In particular, we would welcome new dispute resolution avenues for these workers, who are so often forgotten through existing legislation and court processes.
We are looking forward to future changes to regulations and oversight of the entire Gig economy so some of the most vulnerable workers are no longer left behind.
