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Gig economy 'like quick sand' for vulnerable workers who face insecurity and indignity, report says

Deliveroo rider - AFP
Deliveroo rider - AFP

Workers in Britain’s gig economy are struggling to escape from a toxic combination of pervasive financial insecurity and indignity as temporary jobs leave them with little certainty over their future, a new report has claimed.

The rise of the gig economy in recent years has seen apps like Uber, Deliveroo and others offer flexible working opportunities, with at least one in ten Brits taking a job on a digital platform at least once a week.

But the report published today by Doteveryone, a think tank started in 2015 by Martha Lane Fox, the co-founder of online travel firm Lastminute.com, suggests people working short-term jobs are at growing risk being left “on the fringes” of the nation's economy.

The report warns that “the app has become a trap” for many who fail to secure the benefits of regular employment, with work often intermittent and few protections in place for workers from their employers.

The report, based on research into UK-based gig workers, suggests that poor pay and a lack of opportunity to develop new skills leaves many gig economy workers locked in a “precarious hand-to-mouth existence”.

It calls for a minimum wage for gig workers to tackle financial insecurity that sees a number of people working around the clock to meet basic requirements. It also called for apps to strengthen governance and give workers greater say.

“The platform economy enables flexible work but not everyone benefits equally,” said Catherine Miller, interim chief executive of Doteveryone.

"The recommendations set out in this report can happen immediately and show that, in shaping the future of work, technology can and should be used responsibly to create a fair, inclusive and sustainable democratic society.”

For many of Britain’s gig economy workers, the rapidly growing number of jobs available through apps has created the chance to earn some money when they are between permanent jobs.

One worker said the gig economy "feels like quick-sand”, which needs “a lot of support to get out of". Another claimed that the jobs have left them feeling disrespected as people think “you don’t really deserve respect”.

Last year, European lawmakers approved new rules to ensure minimum rights were put in place for gig workers, such as compensation for cancelled jobs.