A Study on the Concept of Gig Economy

Business Economics
Students Name
Institution

Gig Economy 1
A gig economy refers to the digital labor market activities. The fact that this economy
exists digitally and there is inadequate government regulation of the same, it necessitates
unionism to protect and advance the rights of gig workers to higher wages, better working
conditions, unemployment benefits, social insurance benefits and legitimacy as workers.
However, unionism might distort the freelance nature of the gig economy which makes it more
attractive. Overall, unionism benefits outlive the negative consequences it might impact on the
gig economy.
Similar to the offline economy, the gig economy is an avenue for worker-employer
conflict. From the pluralist perspective on employment relations, worker-employer conflict.is
inevitable. This necessitates the need for unionism to advocate for better terms and conditions for
online workers for their protection and satisfaction. Further, unions should exist to provide a
digital conflict resolution mechanism for gig workers (Johnston & Kazlauskas, 2019). The fact
that labor performed on an online platform is recognized as work entitles online workers to air
their grievances and operate under better working conditions which can be achieved through
unionism. Through unionism, collective bargaining for online workers can be advanced and
effected. Currently, most gig workers do not enjoy employment benefits due to the notion that
they are not recognized as employees. This makes gig workers vulnerable to exploitation.
Unfortunately, there is worker exploitation on the gig economy as it is an on-
demand economy. There are payment disparities for equal work on the same and different digital
platforms which contributes to economic inequalities. This situation can be rectified through
unionism through collective bargaining agreements between employers and employees on the
digital platform. The fact that the digital workplace in inadequately regulated by most

Gig Economy 2
government exposes gig workers to poor working terms and no unemployment benefits thus the
exploitation of these workers escalates. These worker's rights can be guaranteed through
collective bargain agreements advanced by trade unions where there are no adequate legal
regulations for the gig economy workplace ( Snider,2018).
A successful example of what unionism can achieve in the digital platform is the
recent American case of the Instacart. Following noises by trade unions, the grocery app's unfair
tipping policy was reversed. This is proof that unionism is necessary for the efficient and
productive running of the gig economy. Similarly, in the United Kingdom, judicial
pronouncements supporting online laborers have been won. A recent example is the Uber
Company which was called out for classifying its drivers as independent contractors while in
essence, they are employees (O’connor, 2019). These examples prove the assertion that online
labor is the same as offline labor hence the entitlement of online workers to employee benefits.L
Equally important, the formation of trade unions on the gig economy is an
expression of democracy which should be encouraged. (Hoque et.al, 2017). Essentially, trade
unions are considered a voice for the labor force. This is because trade unions possess the right to
conduct industrial strikes, negotiate better terms and working conditions and involve government
policies on employment relations. It is through unions that workers plight is voiced out. This
makes the unions a representation of the freedom of expression of workers' dissatisfaction thus
the same should be available for digital workers. It is a guaranteed constitutional right in most
economies that workers be subjected to a fair working environment and practices thus the same
should extend to the gig economy.
According to research findings conducted by Greenwich University, the
United Kingdom's economic output has declined due to the declining union density. Specifically,