Co-Authored By Shreya Mrinal
The ongoing Blinkit e-commerce labour protests have been on the news and caught our attention. It’s a protest started by the Zomato delivery executives after Zomato implemented modifications to the remuneration arrangement for Blinkit workers.
What Are The Blinkit Protests About?
Under the updated remuneration structure, any delivery personnel will receive no less than ₹15 for each delivery within a 1 km radius, compared to the prior rate of ₹25 which initially started with ₹50. In addition, if the distance travelled for a delivery exceeds 1 km, the workers will be compensated based on the distance travelled, with a rate ranging from ₹10 to ₹14 per km.
The protests started on the 12th of April, mainly in Delhi and Gurugram. A company spokesperson on the above protests said “Only Gurgaon and Noida remain majorly affected currently. We are working with the authorities to ensure that those of our riders willing to work in these areas are allowed to work safely.”
A Delhi-based Blinkit delivery partner told Economic Times that the new structure results in a reduction of Rs 200-250 per day in their payout because most dark stores operate within a radius of 2 km. They also said how, for younger delivery boys who have just signed on to the platform, the new payout structure may work, but for those who have been doing it for some time, the change means a further reduction in earnings.
Let’s Dig A Little Deeper;
Blinkit is owned by Zomato and is a gig economy that refers to a labour market characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs.
While the gig economy can offer flexibility and opportunities for workers to earn income, it also raises concerns around job security, benefits, and worker rights.
The gig economy has been growing in recent years, driven by advances in technology that have made it easier for individuals to connect with clients or customers and offer their services on a freelance or contract basis.
According to private surveys, about one fourth of the workers participate in the gig economy. In India alone, it is estimated by industry sources that around 15 million people are engaged in freelance activities that broadly define the gig economy and their labour is being exploited as most gig jobs still fall under low income category.
It also said how the cases of ‘wage theft’ are at an all time rise and this isn’t a one off case and pertains to a bigger problem.
Challenges Faced By Gig Workers
This reminds me of a chat I had with a Zomato delivery worker who delivered my food late at night and asked for a tip. I said I didn’t have cash to which he told me how he’s struggling to make ends meet and Zomato pays very less even after 14 hours of work shift, which is the reason he asks for a tip from every customer no matter how small the amount is because to him every penny counts. I tipped him and kept thinking about how gig workers are heavily exploited by these big companies. It’s so unfortunate.
In a report by the Indian Express where almost 50 workers were interviewed, they talked about how this new remuneration structure will reduce 50% of their income. A worker said “For about 12 hours of work per day, we could earn around Rs 1,200 – but under the new structure, that came down to Rs 600-Rs 700 which is half of what we used to earn,” In another report they also mentioned how in the pursuit of finishing deliveries within 8-10 minutes, quick commerce firms push their delivery workers, threatening to cut their payments and encourage them to rash driving. Over the years workers from Swiggy and Zomato have gone on strikes for these rapid changes in payment structures overnight. Amidst these protests blinkit has also blocked the account of hundreds of workers, participating in these strikes.
While the gig economy can provide flexibility and allow individuals to work on their own terms, it also has several drawbacks because gig workers are typically classified as independent contractors rather than employees, they are not entitled to the same protections and benefits as traditional employees, such as minimum wage requirements, overtime pay, and access to health insurance and other benefits. This can leave gig workers vulnerable to exploitation and can make it difficult for them to make a living wage. This lack of stability can create financial insecurity and make it difficult for gig workers to plan for the future. Big MNCs exploit their labour by paying them minimum wages and making profit out of them.
A twitter thread exposed what a Blinkit executive said about an “ideal delivery partner”, off the record. He said “We don’t anticipate a delivery job to be someone’s aspiration for us, an ideal delivery worker is perhaps a student looking to make some money to pay for tuition or a model looking to make some money on the side to pay the bills”.
According to a report by Sattva, 99% of the gig workers are men, and 60% are below 30 years of age out of which only 37% are graduates and 73% earn less than 1000 per day and 88% work on one platform. This states how most of the gig workers are young people in need of money and how they’re dependent on such platforms for their livelihood.
What is the point of 10-minute services when the workers aren’t given fair pay and are encouraged to risk their lives for delivery? How is this not a violation of human rights and why aren’t these companies held accountable?
Not only just lack of pay but there are several other drawbacks of being a gig worker which includes:
Lack of job security: Gig workers typically do not have the same job security as traditional employees. They are often dependent on the demand for their services and may struggle to find work during slow periods. This can create financial insecurity and make it difficult for gig workers to plan for the future.
Lack of benefits: Because gig workers are usually classified as independent contractors rather than employees, they are not entitled to the same benefits and protections as traditional employees. This can include health insurance, retirement benefits, paid time off, and other salient benefits.
Uncertainty: Gig workers often have to deal with uncertainty around their income and workload. They may not know how much work they will have in the future, which can make it difficult to plan their finances.
Lack of labour protections: Gig workers are often not covered by the same labour protections as traditional employees. This can leave them vulnerable to exploitation, discrimination, and other forms of mistreatment.
Overall, the gig economy is a complex issue with both benefits and drawbacks. It’s important for policymakers and businesses to consider the needs and concerns of gig workers and work to ensure that they are able to earn a living wage and access important benefits and protections. These drawbacks highlight the need for policymakers and businesses to work together to ensure that gig workers are able to earn a living wage, access important benefits, and have the protections they need to thrive in today’s economy. As consumers of these services, we must speak up and start holding these companies accountable.