Industrial Conflicts in the Gig economy
Industrial conflicts arise when there are disagreements between the employer and employees. Employees express their dissatisfaction in the management and employee relationship. Differences and dissatisfaction may arise as a result of various factors such as appraisal terms, working conditions, and even the terms of the contracts. Industrial conflicts are expressed in different manners. Employees may use formal means or informal means to air their grievances. Formal methods are whereby employees plan while the casual approach is whereby grievances are aired spontaneously. Some employees may choose to riot while others may choose to have negotiations with the employer. Just like in any other economy, the gig economy also experiences industrial conflicts. A gig economy is a free market structure whereby organizations work with independent workers for a short period. Positions are usually temporary in the gig economy. Even though the workers are engaged for a short period, conflicts may arise between them and the employer.
In the gig economy, labor platforms exist. Labor platforms connect the user and the client. The labor platforms are free, and the user pays the platform to use it. The user chooses the kind of clients they want to work with. Gig economy creates a sense of self-employment because of the freedom in those labor platforms, but in the real sense, the user is dependent on those platforms (Wood & Lehdonvirta, 2019). Labor platforms charge fees to the users. Conflicts arise between the users and the owner of the platforms. Users of the platforms feel that they are charged exorbitant prices, and they are being taken advantage of by the owners of the platform. Workers feel the urge to have more magnificent voices and desire for representation to air their grievances. Conflicts arise, and users form groups and unions to air their grievances. The users may also go on a strike and boycott the platforms. Industrial relations are affected, and business in general.
Legislation grounds may result in industrial conflicts in the gig economy. The government may opt to regulate the economy. The government may impose taxes that may adversely affect the gig economy. Employers in the gig economy are forced to adjust their modes of operations to be in line with the rules and to remain afloat. Unfavorable legislation terms may cause friction between the players in the gig economy. The employer may feel that the demands of the employees are too high and cannot be met in the current business climate. At the same time, the worker feels that the employer is unfair. Legislation requirements may force the employer to review the terms and conditions of engagement, such as forcing the workers to upgrade their tools of business and may not turn out to be friendly to the worker. When dissatisfaction arises in any of the players in the industry, then industrial conflicts occur.
In the gig economy, workers feel overwhelmed and that their social needs are not being taken care of. Under the gig economy, workers feel that they do not enjoy employment protection (Poon, 2019). The employer does not provide other benefits such as insurance and sick leave to the workers. Workers are dissatisfied with the working conditions and in turn, form up groups to demand what they feel is their right. Workers may boycott the platforms and discourage others from joining the industry, which may be detrimental to the gig economy. Workers need their social needs to be taken care of by the employer, and at the same time, the employer needs to make money, and remain in business. This causes a conflict between the players in the industry.
Participants of industrial relations are the employer, the employee, and the government. Employees seek better terms and conditions of employment, an increased bargaining power whereby the employees are allowed to bargain on a one-on-one basis with an individual employer. Workers also seek to improve democracy in decision-making at various levels of management. The employer aims at ensuring commitment by employees, retaining employees, and maintaining a higher level of efficiency. The government is interested in collecting revenue as it can from businesses and protecting citizens from exploitation by the firms (Molina, 2014). The employer, the employee, and the government contribute to industrial conflicts. The government may impose policies that may result in disputes. The employer may also have unfavorable terms, and the employees may act in a manner that brings industrial conflicts such as organizing strikes and workers unrest.
In the event of Industrial conflicts, the employees may benefit or may be disadvantaged. Industrial disputes make employers lose business and may pass the costs to the employees by reviewing their working conditions. Workers may be forced to work for longer hours to cover for the losses incurred during the conflict. Workers may benefit from industrial conflicts when employers opt to address their grievances. During industrial disputes, the government may chip in and try to solve the dispute. The government may order the employer to grant the employees their wishes or force the employer to agree with the employee. The government may bargain for a better deal on behalf of the workers. The government loses revenue during industrial conflicts. Industrial conflicts also make employers have a bad reputation. In a bid to salvage their image, employers are forced to give in to the demands of the employees.
In pluralist theory, the employer and employee relationship is a conflicting one. The pluralist perspective views employers as organizations that have different interests, values, and objectives. Although the employer and the workers have various aspects, the pluralist theory advocates for negotiations between the two, and they arrive at an equilibrium. Trade unions fit in and negotiate on behalf of individual employees (Mzangwa, 2015). According to pluralist theory, conflicts may arise when the workers are not allowed to have a union that represents them. A union helps in reaching out to the employer in times of need. The pluralist believes in making sure that there is a connection between the employer and the employees. The union serves as a bridge between an individual employee and the employer, and when employees are denied that right, they become aggressive and tend to react negatively towards the employer resulting in industrial conflict.
The workers in the gig economy do not have bargaining power. Lack of work cooperatives, and a channel to communicate to the employer leads to conflicts in the industry. The organization structure of the gig economy organizations does not accommodate grassroots communication with the workers (Johnston & Land-Kazlauskas, 2018). Lack of a communication channel has lead to active campaigns for work centers and small unions to represent the workers. As a result of a lack of work cooperatives or unions, workers do not have a proper way to channel their grievances but resort to strikes and boycotts. The fragmented nature of the gig economy has also made it challenging to have collective bargaining power for the workers. Workers are subdivided into too many categories, and each category has its terms. Having one platform to champion their needs becomes a task.
Wage stagnation also leads to conflicts. In some organizations in the gig economy, rates are fixed. The organization rates may not match the market rates. Market rates changes depending on the inflation rates in a given country. When there is inflation, and the prices remain constant, the wages may not sustain the workers. Some organizations in the gig economy also do not have appraisal policies. Lack of social protection and appraisal also leads to dissatisfaction at work (Bregiannis, Bruurmijn, Calon, & Ortega, 2017). When workers are not contented, they may resort to a conflict with the management. Unemployment may also lead to disputes in the gig economy. Unemployed persons may join the gig markets with the expectation that their needs will be met. When the expectations are not met, they begin to complain about the platforms, and this may result in industrial conflict.
The pluralist theory explains the conflict in the gig economy as a result of the need for representation. Employers’ interests and employees’ interests vary. However, the employer and the employer is expected to meet the other party’s demand. According to pluralist theory, conflict is inevitable, but the employer and the employee must settle on a middle ground. The gig economy is very diverse, and workers do not have a platform to air their views and grievances. The bargaining power of workers is minimal, therefore leading to conflicts. The pluralist theory also provides a solution for industrial disputes. Pluralist theory entails negotiations. When there are negotiations between employers and employees, conflicts are avoided, and each party is contented.
Although the gig economy entails short-term and temporary positions, industrial conflict is still present. A relationship between the employer and employee exists even in the gig economy — the employers’ needs need to be met, and so do the employees’ needs. As a result of conflicting interests, a conflict may arise. Industrial disputes are still an issue even when there are new forms of work, such as the Gig economy.
References
Bregiannis, F., Bruurmijn, W. J., Calon, E., & Ortega, M. A. D. (2017). WORKERS IN THE GIG ECONOMY.
Johnston, H., & Land-Kazlauskas, C. (2018). Organizing on-demand: Representation, voice, and collective bargaining in the gig economy. Conditions of Work and Employment Series, 94.
Molina, O. (2014). Self-regulation and the state in industrial relations in Southern Europe: Back to the future? European Journal of Industrial Relations, 20(1), 21–36.
Mzangwa, S. T. (2015). DESCRIPTIVE ANALYSIS OF THE THEORETICAL PERSPECTIVES IN EMPLOYMENT RELATIONS. CORPORATE OWNERSHIP & CONTROL, 184.
Poon, T. S.-C. (2019). Independent Workers: Growth Trends, Categories, and Employee Relations Implications in the Emerging Gig Economy. Employee Responsibilities and Rights Journal, 31(1), 63–69.
Wood, A., & Lehdonvirta, V. (2019). Platform Labour and Structured Antagonism: Understanding the Origins of Protest in the Gig Economy. Available at SSRN 3357804.