Behind the Bright Yellow Jackets: Blinkit Strike Highlights the Plight of India's Gig Economy
The gig workforce in India, which comprises over 15 million workers, is currently facing a mounting sense of dissatisfaction, with many feeling excluded by the Union government. This had led to fiery protests, effigy burnings, and thousands of striking workers wearing bright yellow jackets, transforming the Delhi National Capital Region into a conflict zone as delivery workers of Blinkit, the online
grocery shopping business, clashed with the company, protesting against a new rate card that would dramatically reduce their earnings.
The week-long saga of the strike by Blinkit's delivery executives has brought the desperate plight of gig workers in India to the forefront. Blinkit's payout structure has undergone a transformation from ₹50 per delivery to ₹25 per delivery (plus ₹7 during peak hours) to now a minimum fee of ₹15 per delivery.
Arun (name changed), for instance, used to earn between ₹6,000-7,000 per week under the previous payout system. Now, with the new payout structure, he will barely scrape by with a measly ₹4,000 per week, struggling to make ends meet after paying for petrol and his bike's EMI. Unfortunately, with no other viable options available, he is forced to continue working under these unjust conditions.
In the race to outdo one another, Indian e-commerce companies are operating at a breakneck speed, often at the cost of treating their workers with empathy and equity. The Blinkit strike serves as a striking example of how rapid growth and intense competition can result in disgruntled workers, putting businesses at risk.
From a graduate student who drives for a ride-hailing app in his free time to a stay-at-home parent who moonlights with a part-time job, and even a high schooler who takes on odd jobs on food delivery apps, the gig economy has been touted as the future of modern work. But despite being hailed as a revolutionary new industry, gig workers in India are finding themselves left out in the cold.
These workers are demanding secure wages and better working conditions, and they are not alone. Labour rights movements around the world have shown that these demands are not unusual. What sets these workers apart, however, is that they are not recognized as employees by the platforms they work for, such as Swiggy and Urban Company, but rather as partners.
According to Ritwik Raj, Convenor of the App Karamchari Ekta Union (AICCTU), the use of euphemistic language such as "partners" denies these workers their rights and forces them to work in deplorable conditions. The solution, he argues, is to grant gig workers the constitutionally mandated rights they deserve. Despite the introduction of four new labour codes, gig work is only referenced in the Code on Social Security, leaving gig workers without access to essential benefits like minimum wages, occupational safety, and overtime pay. They are also barred from forming legally recognized unions and accessing the national minimum wage that applies to all types of employment.
Gig workers are also left without a legal leg to stand on when it comes to resolving disputes with their employers, as they are excluded from the specialised redressal mechanism under the Industrial Disputes Act of 1947. The absence of collective bargaining rights, a crucial principle of modern labour law, further undermines their position in the face of employer power imbalances. Despite receiving presidential assent, their implementation has been stymied for three years due to state rules framing delays. As gig work gains prominence worldwide and legislation expands beyond social security benefits, gig workers will likely continue to face challenges in protecting their rights until the law is amended to safeguard their interests.
These workers are demanding secure wages and better working conditions, and they are not alone. Labour rights movements around the world have shown that these demands are not unusual. What sets these workers apart, however, is that they are not recognized as employees by the platforms they work for, such as Swiggy and Urban Company, but rather as partners.
According to Ritwik Raj, Convenor of the App Karamchari Ekta Union (AICCTU), the use of euphemistic language such as "partners" denies these workers their rights and forces them to work in deplorable conditions. The solution, he argues, is to grant gig workers the constitutionally mandated rights they deserve. Despite the introduction of four new labour codes, gig work is only referenced in the Code on Social Security, leaving gig workers without access to essential benefits like minimum wages, occupational safety, and overtime pay. They are also barred from forming legally recognized unions and accessing the national minimum wage that applies to all types of employment.
Gig workers are also left without a legal leg to stand on when it comes to resolving disputes with their employers, as they are excluded from the specialised redressal mechanism under the Industrial Disputes Act of 1947. The absence of collective bargaining rights, a crucial principle of modern labour law, further undermines their position in the face of employer power imbalances. Despite receiving presidential assent, their implementation has been stymied for three years due to state rules framing delays. As gig work gains prominence worldwide and legislation expands beyond social security benefits, gig workers will likely continue to face challenges in protecting their rights until the law is amended to safeguard their interests.
The Blinkit strike must serve as a wake-up call for companies to take a hard look at their practices and put in place measures that ensure the welfare of their workers. Ensuring fair wages, safe working conditions, and transparency in incentives are not luxuries but essential ingredients for a healthy and sustainable work environment for delivery workers, like the countless Aruns on the frontline today. E-commerce enterprises must acknowledge that their delivery partners are not mere cogs in the machine but are an integral part of their ecosystem. It is high time for these companies to recognize their responsibility towards their employees and take concrete actions to improve their physical and emotional well-being.
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