Companies classify gig workers as independent contractors and deny them benefits such as insurance cover.
Published Nov 04, 2024 | 9:06 AM ⚊ Updated Nov 07, 2024 | 4:49 PM
Gig workers continue in their jobs hoping for a 'good day' that would bring them better income. (Wikimedia Commons)
Even as Tamil Nadu has been hard selling itself as a hot destination for investment to boost its economy and create jobs, several people, especially gig workers, are struggling to stay afloat.
Take the case of Arun, a deliveryman, who works around 12 hours a day. “On a good day, I make ₹800-₹1,000,” he said.
However, “good days” are few and far between. “But on most days, it’s less, especially during off-peak hours. What makes it harder is the fluctuating earnings. Sometimes you earn well, but on other days, it feels like you’re running around the city for nothing,” he told South First.
Going under the weather is hard for people like Arun. “There are no fixed benefits — no health insurance, no paid leave. If I fall sick, I lose a day’s pay,” he painted a grim picture of gig workers.
Despite the uncertainty, Arun has been staying put, delivering goods irrespective of the weather conditions.
Arun has a reason for continuing in the job. The pay in urban areas is better compared to rural Tamil Nadu. “I used to work as a farmhand and I earned even less—maybe ₹300 a day. Here, at least there’s a chance to make more, even if it’s not guaranteed.”
It is the hope of making more money on a “good day” that has been keeping Arun going. “There’s no other stable work available for someone like me with no education or skills,” he added.
Arun is not an aberration. Ravi (name changed on request) has been driving for Uber Moto for over a year.
“The earnings are inconsistent, and the rising fuel costs make it harder to save anything,” he told South First.
“The worst part is the lack of any benefits — no health insurance, no compensation for accidents. If I get into an accident, I’m on my own. But the immediate cash keeps me going because I don’t have any other job lined up,” the young man said.
The contract with Uber Moto offers him only borderline benefits. The lack of other benefits and minimal job security is common among gig workers. Companies have classified them as independent contractors rather than employees so they need not provide basic benefits like insurance to the workers.
Kavitha (name changed), another delivery worker, faces additional challenges as a woman in the field.
“It’s hard being a woman in this job. Customers don’t always treat me with respect, and safety is a big concern, especially at night. The pay is okay if you meet the targets, but the pressure to deliver within 10-15 minutes can be stressful. Sometimes, I have to rush through traffic, which is dangerous,” she said.
Other women in the gig economy can identify themselves with Kavitha as they navigate societal expectations and heightened safety concerns.
A 2024 report emphasised that many unskilled workers in Chennai find it difficult to save or invest in skill development due to high living costs and limited incomes.
It also noted that a significant section of the workforce, particularly migrant workers, faces similar challenges, often spending most of their earnings on essentials.
For Kavitha, despite the risks, her job offers more income than her previous role as a housemaid. “I can at least earn more on good days,” she said.
“The lack of benefits is a problem, but I can’t find a regular job that pays well. If I get a permanent job, maybe I’ll leave, but for now, I need this to support my family,” she added.
A 2023 report from the Ministry of Labour and Employment indicated that over 78 percent of unskilled workers in Tamil Nadu are employed in informal or contract roles, further exacerbating their vulnerability.
The Economic Survey 2024 emphasised the pressing challenge of skill shortages among India’s young population, where approximately 65 percent are under 35 years old.
This demography holds significant potential for economic growth, yet many lack the requisite skills for a modern workforce. The Economic Survey highlighted a critical need to create around 7.85 million non-farm jobs annually to meet the demands of this burgeoning population, especially as many unskilled workers transition from agriculture to urban settings.
Another report suggested that the gig economy has emerged as a temporary solution for many, but the lack of stable job opportunities exacerbates their vulnerability.
According to research by the Centre for Labour Studies, Tamil Nadu has a significant proportion of its workforce in the informal sector, which encompasses a wide array of occupations but lacks adequate protections under existing labour laws.
Tamil Nadu has witnessed substantial growth in high-value jobs in the electronics sector, with over 25 lakh jobs created recently. However, the vulnerabilities faced by unskilled workers remain unchanged.
“Today, Tamil Nadu offers a wealth of job opportunities, and I have personally conducted awareness sessions for several labour groups to help them access these roles,” CV Ganesan, Tamil Nadu’s Minister of Labour said.
“However, it’s essential to remember that jobs are provided based on qualifications to ensure the right match. Our Chief Minister MK Stalin has also actively expanded these opportunities, even building valuable connections abroad to benefit our workforce,” the minister added.
(Edited by Majnu Babu)
