In this lesson, you will analyze how new rules are changing work in the "gig economy." You will compare different approaches to protecting workers who are managed by algorithms and discuss what makes a system fair.
App-based workers operate in a system managed by algorithms.
Concept Map: The Algorithm as Manager
Think about popular apps that deliver food or give rides, like Uber, DoorDash, or Bolt. How do these platforms manage their workers without a human boss?
In pairs or small groups, brainstorm and discuss the following questions. Be prepared to share your ideas with the class.
- How does the app decide which worker gets a job (a "gig")?
- How does the app track a worker's performance? (Think about ratings, time, etc.)
- What happens if a worker gets low ratings or breaks a rule?
- What are the benefits of this system for the worker? What are the drawbacks?
Vocabulary
Before we continue, let's review some key terms for this topic.
| Word | Definition | Example |
|---|---|---|
| Algorithmic Management | Using automated systems and data to oversee workers, assign tasks, and measure performance. | The app uses algorithmic management to offer delivery jobs to the nearest courier. |
| Classification | The legal category a worker is placed in, which determines their rights. | The legal classification of drivers is the main point of debate. |
| Employee | A person who works for a company and receives benefits like sick pay and minimum wage. The company controls how they work. | As an employee, she is guaranteed 40 hours of work per week. |
| Independent Contractor | A self-employed person hired to perform a specific service. They have more flexibility but fewer protections. | The company hires graphic designers as independent contractors for specific projects. |
| Oversight | The supervision of a person or organization to make sure they are working correctly or legally. | The new law requires human oversight of any automated decisions that lead to firings. |
| Deactivation | The process of removing a worker's access to a platform, effectively firing them. | He was shocked by his sudden deactivation from the app without any warning. |
Listening: New Rules in Europe
You are going to watch a short news report about a new law in the European Union called the Platform Work Directive. This law creates new rules for companies like Uber and Deliveroo.
As you listen, take notes on these two questions:
- What are two new protections or rights that platform workers will get?
- What are two things the platform companies must now do?
New EU-wide rules for gig economy workers
Video Transcript
Below the offices of top EU officials, these gig economy workers are calling for reform. They're chauffeurs, food delivery drivers, and Airbnb hosts, but in most cases, they don't have the same employment safety net as other EU workers. "We have no social protection because, unfortunately, the gig worker framework doesn't provide that in Belgium. I once got into an accident on the highway, and the insurance from the delivery companies didn't cover anything." [ 00:31 ]
The gig economy follows a fractured rulebook across Europe. It's estimated to employ over 28 million people, but many countries have not adapted salary and social security laws to meet their needs. In other cases, regulations have led to all kinds of problems, and hundreds of legal cases are now on the docket at European courts. [ 00:55 ]
But after shying away from this issue for many years, Brussels is now ready to get involved. A new effort from the European Commission aims to regulate and boost the social economy with common rules for workers to be drawn up by 2023. On top of that, the bloc is aiming to help companies involved to scale up. [ 01:19 ]
Platform workers deserve the same level of protection as everyone in the EU. Under our social model, workers would be guaranteed the minimum wage, plus access to sick pay, holidays, and other employment rights. But it comes at a major cost to companies: more than 5 billion dollars extra each year, according to the EU's own estimates. [ 01:43 ]
Many in European government are happy to see some action but are wary that companies like Uber and Deliveroo could eventually influence the final policy. "We know they're ready for anything. They're ready to take out their big guns to avoid having to take on these new responsibilities as an employer. We'll be vigilant until the end of this fight, but today we're proving that the power of money is inferior to the power of people who are fighting." [ 02:08 ]
Despite the announcement, not all workers in the gig economy are celebrating. Emil has been out of work as an Uber driver since a Belgian court blocked the app from operating in late November. He's eager to start driving with them again but worries that too much regulation could push them away. [ 02:28 ]
"If the commission goes a bit too far, it's going to risk messing up the relationships that are currently in place. They need to find a middle ground for the worker, protecting their rights, their social rights, but not scaring away the platforms. The perfect compromise could take many years, or decades even, to come to fruition." [ 02:51 ]
Grammar: Passive Voice for Rules
In the news report, you heard sentences like:
- "Important decisions must be reviewed by a person."
- "Workers must be informed about how the algorithms work."
- "Tasks are assigned."
This is the passive voice. We often use it to talk about rules, laws, and official processes. The focus is on the action or the rule itself, not on who is performing the action. It sounds more formal and impersonal.
Form: [Object] + [be verb] + [past participle]
Active: The company classifies the driver as a contractor.
Passive: The driver is classified as a contractor. (Focus is on the driver and their status)
Active: A manager must review the decision.
Passive: The decision must be reviewed. (Focus is on the rule that the decision needs a review)
Compare: Two Different Worlds
Now let's compare the EU's new rules with a different approach from California, USA. In 2020, California passed a law called Proposition 22. It was recently upheld by the courts in July 2024.
Read the key points of each policy below. With a partner, discuss the similarities and differences. You can use a Venn diagram to organize your thoughts.
EU Platform Work Directive
- Status: Workers are presumed to be employees if the platform shows control.
- Rights: Entitled to minimum wage, sick pay, and unemployment benefits.
- Algorithms: Human oversight is required for major decisions like deactivation. Workers must be told how the system works.
California's Proposition 22
- Status: Workers are classified as independent contractors.
- Rights: Not entitled to full employee benefits, but get some new protections: a guaranteed minimum earning and a contribution towards health insurance.
- Algorithms: Platforms can continue to use algorithmic management, including for deactivation.
Discussion Questions:
- What is the biggest difference between the two systems?
- Which system offers more security to workers?
- Which system offers more flexibility to companies and workers?
Case Clinic: The Deactivated Courier
Work in small groups of 3-4. Read the following scenario about a food delivery courier named Alex. Your group will act as advisors.
Scenario
Alex has been a courier for a food delivery app for two years. Alex’s customer rating is usually very good (4.8/5.0). Last week, Alex had a bike accident and had to cancel two orders. Then, a restaurant made a mistake and an order was very late. A customer gave Alex a 1-star rating for the delay. This morning, Alex woke up and could not log into the app. A message said the account was deactivated due to "low performance standards." There was no other explanation.
Your Task:
Discuss the following questions in your group. First, analyze Alex's situation under the EU Platform Work Directive. Then, analyze it under California's Prop 22.
Under the EU System:
- What is Alex's likely worker classification (employee or contractor)?
- What rules did the company break when it deactivated Alex?
- What information can Alex ask the company for?
- What is the first step Alex should take to appeal the deactivation?
Under the California (Prop 22) System:
- What is Alex's worker classification?
- Did the company break any rules when it deactivated Alex? Why or why not?
- What are Alex's options for appealing the decision? Are they different from the EU system?
- What advice would you give Alex in this situation?
Be prepared to share a summary of your advice for Alex.
Reflection: What is 'Fair' Flexibility?
As a class, let's reflect on the big picture.
The main argument for the "gig economy" is flexibility—workers can choose when and how much they work. Companies also have the flexibility to manage their workforce based on demand.
- How do you define "fair" flexibility?
- Should workers give up security (like sick pay) for more flexibility?
- Can a system be both flexible and secure for workers? How?
Teacher's Note
Local Angle: Take a few minutes to introduce a popular ride-hail or food delivery platform in your city. Ask students if they know about any local rules or debates concerning these workers. Are they generally considered employees or contractors in your country? This connects the global topic to their local reality.