Speaking to South First, Minister Santosh Lad said the state is hoping to do what aggregator apps are refusing to do for gig workers - care for the welfare of those helping companies earn millions.
Published Oct 19, 2024 | 11:40 AM ⚊ Updated Oct 19, 2024 | 11:40 AM
Gig workers. (Representational/ iStock)
The Congress government in Karnataka is planning to levy one to two percent transaction fees on aggregator platforms as part of the welfare fund for gig workers. The welfare fund is a part of the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill.
This fee collected from the customers through the platforms will be transferred to the welfare board, which is in charge of introducing social security measures like the ₹4 lakh insurance cover for each gig worker, announced by Chief Minister Siddaramaiah previously.
To understand the importance of the transaction fee, and how will it be charged and used, South First, exclusively spoke to Karnataka Labour Minister Santosh Lad.
Santosh tells us that this is primarily a welfare fee on the transaction point. He clarified that “It is only on the transaction of a transportation,” and people should not get confused with this fee.
Explaining how it works, he says, “For example, if a product is being delivered, it has an X value. I am not charging for the product at all. I am only charging the fee on the transportation.”
The state cabinet is expected to discuss the bill on 24 October. He added that this bill is already with the Cabinet sub-committee and will be introduced in the next assembly session.
The additional levy on each transaction may seem small — ₹1 to ₹5 per transaction — but could add up quickly, changing the way people spend online.
Santosh has requested aggregators to consider this bill and fee. “The only fundamental point is that the aggregators are not providing any vehicle to anybody. The aggregator only provides an app. The gig workers are on the roads most part of the day, consuming kilos of CO2, affecting their health. They are not worried about that and do not talk about that,” he complained.
When asked if aggregator platforms have accepted this wholeheartedly, Santosh says, “A gig worker is already losing 10 years of their life, and yet the aggregators are finding issues.”
“I have had 32 meetings in the last 16 months and honestly, I have made an effort to call everybody. But they always try to find some flaws. I am requesting all the interested parties over here, we do not want to have any inspections. We just want to see gig workers get minimum wages. Our focus is only on a welfare fund,” he notes.
Santosh also had one message for the aggregator platforms: “Have sympathy and empathy for the people who struggle on the road and help them (companies) make millions a year.”
South First also spoke to Mohammed Mohsin, Principal Secretary, of the Labour Department who said, “The cabinet sub-committee has to take a view on the Gig workers bill. Once the cabinet gives its approval, it will be decided. A minimum one percent and maximum 2 percent fee is being thought of.”
In a bid to enhance transparency and accountability in the gig economy, the state government previously proposed the implementation of a Central Transaction Information and Management System (CTIMS).
This proposed CTIMS system aims to track and monitor all payments generated on platforms, including those made to gig workers and the welfare fee deducted.
The CTIMS will be administered by the state government and monitored by the Board and will serve as a central repository for all transactions related to platform-based gig workers.
Every payment made to gig workers and welfare fee deducted will be recorded on the system, ensuring that all transactions are traceable and accountable.
Furthermore, the CTIMS will provide transparency on the utilisation of the welfare fee, with details of the amount collected and spent at the gig worker level readily available on the system.
(Edited by Sumavarsha Kandula)
