Fairwork Indonesia Ratings 2021: Labour Standards in the Gig Economy

December 27, 2021 4:17 pm || By

In this study, the Fairwork Indonesia Team assessed digital platforms based on five decent work principles and gave each company a value from zero to ten. This study saw that most digital platforms failed to meet basic standards of fairness when compared to Fairwork principles, including:

Fair Pay – None of the six platforms could assure that workers would earn at least the regional minimum wage after work-related costs.

Fair Condition – Three of the six platforms (Gojek, Grab, Paxel) provide adequate protection from task-related risks in their daily work.

Fair Contract – Four of the six platforms (Gojek, Grab, Paxel, Maxim) provided clear and accessible proof of contracts or terms of service. However, no platform could prove these terms and conditions, such as risks and obligations, shared equitably between the workers (partners/Mitra) and the platform.

Fair Management – ​​Only two of the six platforms (Gojek & Grab) have a formal process where workers could appeal the decisions made by the platform.

Fair Representation – A workers’ association exist but was not formally recognized either in the Act or by the platform. Therefore, no platform shows a policy that recognizes the existence of formal legal representation of workers’ representatives.

CfDS UGM aims to voice the importance of protection and more decent labor standards on the Indonesian economic platform through this study. For example, this research found that an online motorcycle taxi driver must work more than 12 hours a day to achieve a decent level of income that matches the standard of living. In addition, female gig drivers also experience discrimination and are vulnerable to sexual harassment by customers. Therefore, the role of digital platforms is needed to address these problems. One example of a policy implemented is providing options for women workers to focus on food delivery services, package delivery, and not ride-hailing services.

The results of this research report can be accessed via: https://fair.work/en/fw/publications/fairwork-indonesia-ratings-2021-labour-standards-in-the-gig-economy/