China moves towards better protecting its gig workers

Those workers form the backbone of China’s rising consumer society, yet they enjoy few benefits, unlike full-time staff.

Technology-driven businesses have outrun legislation, which is now playing catch-up. Mobile shopping for all sorts of products and services has become too convenient. Companies’ advanced algorithms – some even use artificial intelligence – quickly take orders and assign deliveries under tight schedules.

Beijing has now issued a 12-point plan that calls for timely and fair wage payments, stronger social welfare, extreme-weather work rules and transparency in a platform’s algorithms covering orders, fees and time limits, among other measures. Platform practices have long been abusive and technology has made things worse. The authorities aim to standardise labour practices across platforms by next year. The new measures are part of the nation’s current five-year plan, released in October.

The nation’s gig economy has exploded, due in part to a shaky job market. More than 27 per cent of the workforce is now engaged in gig work. Urban youth unemployment is especially high, having edged up to almost 17 per cent in March, according to official figures. Many have little choice but to enter the gig economy. The jobless rate for those aged 25 to 29 also rose to 7.7 per cent, while overall urban unemployment stood at 5.4 per cent.

In recent years, many online platforms have faced criticisms over low pay, punishing schedules and unsafe working conditions. Some platforms overcharge for commission, including a flat fee plus a percentage of the fare, which significantly cuts into drivers’ earnings. Because many platforms, especially those offering food delivery, are locked in vicious price wars, workers’ earnings are severely squeezed.