Social Europe

  • EU Forward Project
  • YouTube
  • Podcast
  • Books
  • Newsletter
  • Membership

The platform economy—time for decent ‘digiwork’

Maria Mexi 26th November 2020

Unless the platform economy becomes embedded in social norms about decent work, it threatens to rewrite society in its own image.

platform economy
Maria Mexi

When the platform economy launched a decade ago, proponents claimed it would revolutionise the world of work. Optimistic expectations proved febrile, however, as positive stories have not taken off. On the contrary, the companies at its heart face severe criticism over inadequate employment protections (unfair work), freeriding on conventional businesses (unfair competition) and inadequate consumerprotection. A big reset is necessary, as the balance has tipped too far in the platforms’ direction.

People choose such work because they value more freedom and autonomy, digital platforms say. Yet there is strong evidencethat freedom and autonomy do not always reach their apogee there. Excessive surveillance through algorithmic controls, combined with reduced bargaining power, effectively undermines the freedom the firms tout and their workers desire.

This power imbalance is also manifest in the arbitrary way platforms act to build profit on data generated by workers for free. The companies need to manifest a compelling vision of data justice, providing fair compensation and workers’ control of the terms of their engagement with data.

Fundamental imbalances

Core to these fundamental imbalances are freeriding mindsets, embedded deep within the platform economy. Throughout the years, in markets across the globe, platforms have been benefiting from freeriding on the security provided by conventional employment.

The pandemic has further exposed this dark side. During the early lockdowns, digital platforms successfully externalised responsibilities on to governments for financial support and on to platform workers for their own protection. Some have even increased surveillance of workers during the pandemic—with the potential this will become ‘normalised’ in its aftermath.

As certain platform-type practices degrade the norms that define decent employment and responsible business conduct, we need to look at where an economy dominated by an ever-growing class of digital freeriders—and an underclass of insecure ‘freelances’—will take us. We need public debate about the limits of platform markets, reasoning together about the right ways of embedding the platform economy in the digital age, distilling what principles governing work we want to protect rather than let perish.

Such an agenda of decent digiwork would engender a robust, democratic dialogue about the moral foundations of the platform economy—with the primary goal a more equitable and engaged society, which rebalances power in digital workplaces.

Mutual interdependence

Securing decent work is above all a call for political action and social activism, recognising our shared responsibilities and mutual interdependence. As we report in a recent International Labour Organization research brief on social-dialogue outcomes reached globally during the early phase of the pandemic, there has been only a vague focus on platform workers and other groups particularly vulnerable to the impacts of the Covid-19 crisis—such as women, migrants and informal workers.

Yet vulnerability has no borders; nor has solidarity. As platform workers’ precarity has grown during the pandemic, we can no longer afford indifference to the many pariahs of the digital economy. Nor can we consume platform services without regard to effect. The evidence calls for new types of vigilance, where institutions and citizens alike have a role to play.

Mobilisation on the part of social partners—which have valuable, sector-specific knowledge—is also vital to level the playing-field, by bringing pressure for more fine-tuned regulation or by pushing digital platforms to come to thenegotiation table. This in turn makes it critical that we enable platform workers to have a voice at work.

Governments and international agencies also need to put in place effective frameworks of due diligence on labour issues, covering the platform economy, and support a formal role for labour and civil societyin these frameworks. In the case of globalised crowdwork platforms, such arrangements can lead to rebalancing power asymmetries in their cross-border operations. All these issues will soon be put on the table more intensely, as telecommuting and virtual service delivery are triggering an acceleration of the globalisation of services—in which crowdwork platforms play an important role.

Pressing platforms to adopt voluntary codes of good conduct is also important for addressing imbalances. In the long run this could bring together existing initiatives in a broader and coherent global framework, which could be actively endorsed by organisations such as the ILO and the European Union. While voluntary codes are no ‘silver bullet’ for fixing problems, they can have a more immediate impact than ‘hard’ law, which tends to move more slowly.

Transparency and justice

The time has come also to embed transparency and justice in labour markets and societies increasingly defined by data. Workers’ demands for data compensation are likely to become one of the most confrontational issues with platforms in the years to come. New trade union strategies will be needed to push forward a data-as-labour agenda, which could enable ‘data labourers’ to organise and collectively bargain with platforms. All this requires, on one hand, global trade union co-operation and, on the other, country-specific action.

Today, as the platform economy evolves, governments worldwide struggle to put in place far-reaching solutions, with international and multilateral co-ordination weak. Considering the cross-border aspects and heterogeneity of platform work and markets, a global observatory dedicated to the platform economy could strengthen synergies and add policy coherence.

Such an observatory could be entrusted with monitoring and providing country-level support on such issues as working conditions, algorithmic management and control, or cross-border social-security co-ordination. It could be administered by an existing international institution with a strong normative labour-standards agenda, such as the ILO.

One of the most worrying tendencies of our time is the diffusion of the undesirable mindsets and attitudes that govern most platform-type work and markets—by their very DNA less equitable and inclusive—into other spheres of life, devaluing the solidarity on which democratic citizenship depends. There is no bigger challenge today than the need to offset the risk of a platform economy gradually becoming a ‘platform society’. We can still reverse this but it will take a lot of work—individual and collective.

An agenda of decent digiwork is as much about identifying the agents of transformation as it is about articulating new ideas. It is, above all else, about people and their aspirations for a future of work which takes a big turn for the better.

This is part of a series on the Transformation of Work supported by the Friedrich Ebert Stiftung

Pics 7
Maria Mexi

Dr Maria Mexi serves as a special adviser to the president of Greece, a consultant at the International Labour Organization and a senior researcher and fellow at the United Nations Research Institute for Social Development and the Albert Hirschman Center of Democracy of the Graduate Institute Geneva.

Harvard University Press Advertisement

Social Europe Ad - Promoting European social policies

We need your help.

Support Social Europe for less than €5 per month and help keep our content freely accessible to everyone. Your support empowers independent publishing and drives the conversations that matter. Thank you very much!

Social Europe Membership

Click here to become a member

Most Recent Articles

u421983ae 3b0caff337bf 0 Europe’s Euro Ambition: A Risky Bid for “Exorbitant Privilege”Peter Bofinger
u4219834676b2eb11 1 Trump’s Attacks on Academia: Is the U.S. University System Itself to Blame?Bo Rothstein
u4219834677aa07d271bc7 2 Shaping the Future of Digital Work: A Bold Proposal for Platform Worker RightsValerio De Stefano
u421983462ef5c965ea38 0 Europe Must Adapt to Its Ageing WorkforceFranz Eiffe and Karel Fric
u42198346789a3f266f5e8 1 Poland’s Polarised Election Signals a Wider Crisis for Liberal DemocracyCatherine De Vries

Most Popular Articles

startupsgovernment e1744799195663 Governments Are Not StartupsMariana Mazzucato
u421986cbef 2549 4e0c b6c4 b5bb01362b52 0 American SuicideJoschka Fischer
u42198346769d6584 1580 41fe 8c7d 3b9398aa5ec5 1 Why Trump Keeps Winning: The Truth No One AdmitsBo Rothstein
u421983467 a350a084 b098 4970 9834 739dc11b73a5 1 America Is About to Become the Next BrexitJ Bradford DeLong
u4219834676ba1b3a2 b4e1 4c79 960b 6770c60533fa 1 The End of the ‘West’ and Europe’s FutureGuillaume Duval
u421983462e c2ec 4dd2 90a4 b9cfb6856465 1 The Transatlantic Alliance Is Dying—What Comes Next for Europe?Frank Hoffer
u421983467 2a24 4c75 9482 03c99ea44770 3 Trump’s Trade War Tears North America Apart – Could Canada and Mexico Turn to Europe?Malcolm Fairbrother
u4219834676e2a479 85e9 435a bf3f 59c90bfe6225 3 Why Good Business Leaders Tune Out the Trump Noise and Stay FocusedStefan Stern
u42198346 4ba7 b898 27a9d72779f7 1 Confronting the Pandemic’s Toxic Political LegacyJan-Werner Müller
u4219834676574c9 df78 4d38 939b 929d7aea0c20 2 The End of Progess? The Dire Consequences of Trump’s ReturnJoseph Stiglitz

S&D Group in the European Parliament advertisement

Cohesion Policy

S&D Position Paper on Cohesion Policy post-2027: a resilient future for European territorial equity”,

Cohesion Policy aims to promote harmonious development and reduce economic, social and territorial disparities between the regions of the Union, and the backwardness of the least favoured regions with a particular focus on rural areas, areas affected by industrial transition and regions suffering from severe and permanent natural or demographic handicaps, such as outermost regions, regions with very low population density, islands, cross-border and mountain regions.

READ THE FULL POSITION PAPER HERE

ETUI advertisement

HESA Magazine Cover

What kind of impact is artificial intelligence (AI) having, or likely to have, on the way we work and the conditions we work under? Discover the latest issue of HesaMag, the ETUI’s health and safety magazine, which considers this question from many angles.

DOWNLOAD HERE

Eurofound advertisement

Ageing workforce
How are minimum wage levels changing in Europe?

In a new Eurofound Talks podcast episode, host Mary McCaughey speaks with Eurofound expert Carlos Vacas Soriano about recent changes to minimum wages in Europe and their implications.

Listeners can delve into the intricacies of Europe's minimum wage dynamics and the driving factors behind these shifts. The conversation also highlights the broader effects of minimum wage changes on income inequality and gender equality.

Listen to the episode for free. Also make sure to subscribe to Eurofound Talks so you don’t miss an episode!

LISTEN NOW

Foundation for European Progressive Studies Advertisement

Spring Issues

The Spring issue of The Progressive Post is out!


Since President Trump’s inauguration, the US – hitherto the cornerstone of Western security – is destabilising the world order it helped to build. The US security umbrella is apparently closing on Europe, Ukraine finds itself less and less protected, and the traditional defender of free trade is now shutting the door to foreign goods, sending stock markets on a rollercoaster. How will the European Union respond to this dramatic landscape change? .


Among this issue’s highlights, we discuss European defence strategies, assess how the US president's recent announcements will impact international trade and explore the risks  and opportunities that algorithms pose for workers.


READ THE MAGAZINE

Hans Böckler Stiftung Advertisement

WSI Report

WSI Minimum Wage Report 2025

The trend towards significant nominal minimum wage increases is continuing this year. In view of falling inflation rates, this translates into a sizeable increase in purchasing power for minimum wage earners in most European countries. The background to this is the implementation of the European Minimum Wage Directive, which has led to a reorientation of minimum wage policy in many countries and is thus boosting the dynamics of minimum wages. Most EU countries are now following the reference values for adequate minimum wages enshrined in the directive, which are 60% of the median wage or 50 % of the average wage. However, for Germany, a structural increase is still necessary to make progress towards an adequate minimum wage.

DOWNLOAD HERE

Social Europe

Our Mission

Team

Article Submission

Advertisements

Membership

Social Europe Archives

Themes Archive

Politics Archive

Economy Archive

Society Archive

Ecology Archive

Miscellaneous

RSS Feed

Legal Disclosure

Privacy Policy

Copyright

Social Europe ISSN 2628-7641