Labour protections for gig workers

Opinion

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This article was published 06/07/2024 (456 days ago), so information in it may no longer be current.

British Columbia will enact groundbreaking regulations Sept. 3 aimed at providing fairness, minimum-wage measures, and essential protections for app-based ride-hailing and delivery workers. This initiative, the first of its kind in Canada, targets those known as gig workers, who work for apps such as Uber, Lyft, Uber Eats, SkipTheDishes, DoorDash and others.

“All companies should be providing basic fairness like minimum wage for their workers,” stated Harry Bains, minister of labour for the province of British Columbia. “Everyone working hard to support their families should have basic protections so if they’re injured on the job, they won’t lose their homes. That is what we are doing with these regulations — providing fair pay and basic protections for these workers.”

These new measures, developed through extensive consultations with workers, platform companies, labour organizations, and the public, aim to balance the needs of gig workers while maintaining the availability and affordability of app-based services in the province.

Challenge of gig work

The gig economy has transformed the labour landscape by offering flexible work opportunities through digital platforms. However, this shift has also exposed workers to precarious employment conditions. Gig workers often face low wages, lack of job security, and inadequate access to benefits that are standard for traditional employees.

Unpredictable pay, vehicle expenses

One of the primary issues gig workers encounter is low and unpredictable pay. After deducting their vehicle expenses, many app-based workers find themselves earning less than the minimum wage. The new regulations in B.C. address this by setting a minimum wage for “engaged time” — the time when workers are actively completing for a job. Additionally, a per-kilometre vehicle allowance will be introduced to cover the costs associated with operating a personal vehicle for work.

Absence of

workers’ compensation

Gig workers traditionally have been excluded from workers’ compensation schemes, leaving them vulnerable in case of injury. Under the new regulations, all ride-hailing and delivery workers will be covered by WorkSafeBC, ensuring they have financial support if injured while on the job. This provision offers a significant safety net, which many gig workers have lacked.

Transparency, fair treatment

Another critical aspect of the new regulations is the emphasis on transparency. Companies will be required to provide gig workers with information about job locations and estimated pay before they accept assignments. This transparency allows workers to make informed decisions about the tasks they choose to undertake. Additionally, protections against unfair “deactivations” and suspensions are being implemented. Companies must now provide reasons for any disciplinary actions, and workers terminated without cause must receive notice or compensation.

Protection of tips

Gig workers often rely on tips as a significant portion of their income. The new regulations mandate that companies pass 100 per cent of customer tips directly to the workers. This ensures that tips serve their intended purpose — as a reward for the worker’s service — rather than subsidizing company expenses.

Voices from the gig economy

Sandeep Singh Chhina, a full-time app-based ride-hailing and delivery worker in B.C., expressed his relief at the upcoming changes: “Inflation is high and it’s hard to afford everyday things my family needs. The security of a minimum wage will be game-changing for me. What also stands out is the peace of mind my family and I will have in knowing that if I’m ever injured on the job, I will have workers’ compensation coverage.”

Should Manitoba follow suit?

As British Columbia leads the way with these significant reforms, it is imperative that other provinces, including Manitoba, follow suit. Manitoba must not lag behind in protecting its gig economy workers. Here’s why Manitoba should urgently adopt similar regulations:

Rising numbers of gig workers

Manitoba, like many regions, has witnessed a surge in the number of gig workers in recent years. With the growing popularity of ride-hailing and delivery services, it is crucial to ensure fair treatment and adequate protection for these workers. Implementing regulations akin to those in B.C. would provide essential safeguards for Manitoba’s gig workers who deserve access to the safety net that other employed Manitobans enjoy.

Addressing economic vulnerabilities

Gig workers in Manitoba face the same economic vulnerabilities as their counterparts in B.C., including low and inconsistent earnings and the absence of benefits. Adopting similar protections — such as minimum wage guarantees, vehicle expense allowances, and workers’ compensation coverage — would provide a more stable and secure financial environment for these workers. This stability is essential not only for the workers but also for the economic health of Manitoba. Ensuring fair pay and benefits will allow gig workers to better support their families and contribute more effectively to local economies.

Enhancing economic and social justice

The implementation of these regulations in Manitoba is a matter of economic and social justice. Gig workers are often among the most vulnerable in the labour market, and without these protections, they are at risk of exploitation. Ensuring they receive fair compensation, transparency, and protections against unfair treatment is not just a practical necessity but a moral imperative. It upholds the principles of fairness and equity that should be the foundation of Manitoba’s labour policies.

Conclusion

Manitoba has a compelling opportunity — and indeed, a responsibility — to follow British Columbia’s lead in implementing robust protections for gig workers. These regulations are not merely a set of guidelines but a critical framework that addresses the vulnerabilities of gig workers, ensuring they receive fair treatment and financial security. As the gig economy continues to expand, Manitoba must act swiftly to adopt similar measures, setting a standard of fairness and equity for the future of work in the province.

Broader implications and future adjustments

These regulations represent a significant step forward in addressing the unique challenges faced by gig workers. With an estimated 11,000 ride-hailing drivers and 35,000 delivery workers in B.C., the impact of these protections will be substantial. The B.C. government plans to monitor the sector closely to determine if further adjustments are needed.

British Columbia’s new regulations set a strong precedent for protecting gig workers in Canada. As Manitoba and other provinces consider their next steps, the focus must be on ensuring fair and equitable treatment for gig workers, balancing the flexibility of gig work with the need for basic worker protections.

Tory McNally, CPHR, BSc., vice-president, HR consulting, is a human resource professional, radio personality, speaker and problem solver. She can be reached at tory@legacybowes.com