Recently I read something that really shocked me – I had to reread the paragraph three times to make sure I hadn’t misunderstood what was written. It was an article on the gig economy for healthcare workers. The app Shiftkey in America is a sort of ‘Uber for nursing’ that connects nurses and healthcare staff to hospitals that are short staffed, just like Uber connects passengers with empty taxis. Seems simple enough? What was shocking was the nurses that use the app will be offered a different hourly wage for the exact same shift in the exact same hospital. Shiftkey uses commercially available financial data to make decisions about the wage offered. Users that have high levels of debt and less money in their accounts will be offered lower wages, as surely they will need the money more. Just as shocking was that nurses can bid to win a shift by offering a lower hourly wage than their competition. When you do agree what pittance you will accept, Shiftkey then takes fees from this. A safety fee that is used to carry out background checks, accident insurance, malpractice insurance, and a finders fee for arranging the shift. If you want to be paid the same day, that’ll be another $2. A shift that was $23 an hour is quickly reduced to $13 an hour.

This is just the next stage in employees getting squeezed to the stage that every hard fought for gain is going to be lost. The aforementioned Uber led the revolution with their app. It was sold to drivers as a great way to make money with no obligations. No minimum hours, just work the hours you want to work. Uber would rely on the economic principles of supply and demand to set prices so if there are not enough drivers working late on a Friday night you up the price you charge customers to entice more drivers to work. Too many drivers on Saturday morning? Drop the price so drivers don’t come out. At face value this might make sense, but there was of course more to it. You weren’t classed as an employee, you were self employed. There would be no sick pay, no pension, no paid maternity or paternity leave, and no holiday pay. This model is the same used by the likes of Just-Eat and Deliveroo, YoungOnes, and Temper.
Despite what they may claim, capitalists hate risk. Capitalists dream of a world where the demand for their product is always high and matches their production levels, and consumers have to use their product. The real world doesn’t operate like that, and while advertising can be used to tempt us, they can’t force us to buy their goods. So an area ripe for exploitation is their employees. The employment offered by the gig economy is precarious work, it is typified by low wages, low job security, long hours, and an unstable income. These are the working conditions of Victorian Britain.
At the end of January employment rights minister Justin Madders wrote to YoungOnes and Temper asking they make sure they weren’t breaking employment law by classifying workers as self employed. If a worker is self-employed they are not entitled to the workplace benefits enjoyed by employees. Some may choose this option as the balance between freedom and lack of rights might work for them. The issue begins when workers who should be classed as regular or temporary employees, are classed as self employed. Justin Madders says he will “not hesitate to ask all relevant authorities to scrutinise employers or agencies whose behaviour appears to be exploitative” and it is unacceptable for businesses to claim people are self-employed “when it does not represent the reality of the relationship”. As workers we have one option – collective bargaining. When a boss decides it’s quiet and sends you home with no pay for the rest of the shift, that’s a unilateral decision with no input from the employee, who also has no chance of recourse. When a gig economy app sells your labour to a company that won’t give you a break, won’t let you accrue holiday pay, what can the worker do other than accept these conditions if they want to be paid. By standing together in a union workers have the strength to fight back against the exploitation they face on a daily basis. Unless we fight back, this precarious form of employment may become the norm, and all that the generations that preceded us fought for will be lost.
Uber championed itself as a disruptor, with a plan to ‘move fast and break things’. Unfortunately, the thing they broke was the rules. Many cities had strict rules around private hire drivers so they could keep people safe. Countries have rules around what an employer can demand of an employee, and who is to be defined as an employee. A quick Google of Uber will show that they have managed to evade a lot of trouble, even when in 2014 their then head of communication Nairi Hourdaijian stated in an email “sometimes we have problems because, well, we’re just fucking illegal”. Closer to home in Britain Uber fought a case brought by two of their drivers that established that those who drive cars for Uber, are Uber drivers. The implications for Uber were huge, so they fought tooth and nail to have its drivers classified as contractors and not independent drivers. They lost this case and all subsequent appeals meaning drivers were entitled to the national minimum wage and at least 28 days of holidays.
Uber also wasn’t charging VAT on their rides. The Good Law Project challenged this in court and in 2022 won. This eventually led to Uber receiving a £1.5 billion tax bill. That is a phenomenal amount of money that HMRC wouldn’t have gone after if the Good Law Project hadn’t forced their hand. At a glance it appears HMRC just took Ubers word that it was an agent running thousands of little companies, rather than a contractor. This was £1.5 billion that should have been in the public purse, and it makes me question what HRMC were thinking? How many opportunities were lost to improve the country with this money? How many other companies are underpaying because they have miscategorised themselves?
The governments of the world, by letting the likes of Uber get away with breaking the law and treating employees like garbage, have failed all citizens. It now looks like this ‘disruptor’ model of app is here to stay. It’s here to cut away at your rights. Use them at your peril.
Image credit – Navy Medicine. Link https://commons.wikimedia.org/wiki/Category:Nurses#/media/File:3rd_Medical_Battalion_nurses_and_Corpsmen_conduct_ICU_training_200424-M-RB959-1098_(49864579402).jpg