Business Economics: Evaluating Unionism in the Modern Gig Economy

This essay examines the role of unionism in the gig economy, arguing that it is necessary to protect and advance the rights of gig workers, despite potential distortions to the freelance nature of the work. Drawing from a pluralist perspective, it highlights the inherent worker-employer conflict in both traditional and digital economies, emphasizing the need for unions to advocate for better terms and conditions, provide conflict resolution mechanisms, and facilitate collective bargaining. The essay cites examples such as the Instacart case and Uber rulings to demonstrate the positive impact of unionism in securing fair treatment and benefits for gig workers. It also addresses concerns about worker exploitation, payment disparities, and the lack of adequate government regulation in the gig economy, suggesting that unionism can help address these issues through collective bargaining agreements and policy influence. The essay further connects unionism to broader economic benefits, citing research indicating that declining union density has negatively impacted economic output. It also touches upon gender inequality in the gig economy and suggests that unionism can help standardize pay and reduce income disparities. While acknowledging arguments against unionism, such as potential interference with flexibility and individual identity, the essay ultimately concludes that the benefits of unionism in ensuring fair labor practices and economic justice outweigh the drawbacks.

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,

Gig Economy 3
the UK’s Gross Domestic product has reduced by1.6 % since 1975 to date following the
implementation of anti-union policies and laws. This goes to show that unionism boosts
economic outcomes as compared to suppressing unionism. Restoration of unionism is estimated
to boost the UK GDP by twenty-seven point two billion euros (Onaran et.al, 2015). This is an
indication that unionism will boost economic development and revenue if allowed in the gig
economy. Already the gig economy is an employer for massive laborers. This translates to
income. In case that the gig economy is properly recognized by law and unionized, the rates of
unemployment will reduce significantly.
Whereas some laborers get to choose their working schedule and tasks on the global
economy, their task performance is controlled by their temporary employer. For instance, take
the Uber app. While drivers choose their working hours and routes, their actions once on transit
are under scrutiny, monitoring, tabulated and controlled by the app. Essentially the UBER app
determines the performance metric of the driver, monitors how many trips the respective driver
undertook and decides the pay. In a sense, the activities of the driver are controlled by the app
hence the assertion that such drivers are not purely independent contractors but employees. All
employees are entitled to union representation benefits (Tran & Sokas,2017). Currently, gig
workers do not enjoy union representation in case of workplace grievances which is a
disadvantage to them as workers.
Through unionism, employees have a physical avenue to have their grievances
collectively addressed. For most countries, before an employee is laid off there must be notice to
the labor division and notice to the employee. This provides a sense of fairness, belonging and
representation in the case of unfair dismissal, redundancy for the employee. Further, unionized
employees have the backing and representation of the union in the case of workplace

Gig Economy 4
dissatisfaction, redundancy, and unfair dismissal. However, the same cannot be said for most
freelancers who rarely have contracts thus they are unlikely to enjoy procedural and fair
dismissal at the workplace. .For most freelancers, they are likely to represent themselves in such
disputes and some cases incur advocacy representation costs (Gandhi, 2012).
While trade unions are not a political organization, they influence government
policy in issues affecting employment. With the growing trend of evolution of the gig economy,
new risks and problems emerge from the platform to workers. For example, there is no fixed
wage for any given activity. There is no security, social benefits, therefore, leaving room for
exploitation of online laborers. Through unions, policies addressing such uncertainties and
addressing wage inflation can be addressed through government policy influenced by trade
unions (Kaine & Josserand, 2019). This makes it necessary for the gig economy to be
unionized(Dromer,2018). Further, trade union activity provides an avenue for its members to
engage in national politics through union campaigns.
Unionism in the gig economy will make it easier for gig workers to access unemployment
benefits, better wages and social security benefits. As it stands currently, gig workers are
misclassified as independent workers even though what they do work online (Emilio et.al,2019).
Through unionism, gig workers will access social security benefits that are entitled to workers
under collective bargaining agreements and employment laws. In essence, the gig economy is a
technologically advanced traditional workplace that should entitle gig workers to employment
benefits such as better wages and social insurance. Formation of unionism in gig economies will
lead to the recognition of gig workers as ordinary workers with the right to equal benefits of
employment (Vandaele, 2018). The gig economy is key to the economic growth of most nations.

Gig Economy 5
Further, drawing from a feminist perspective on employment relations, it is necessary
for the gig economy to champion equality in pay among different genders of workers. According
to recent research findings in the UK, women account for 16 percent of weekly gigs and there is
evidence of unequal gender earning on gig workers performing similar tasks on the digital
platform (Hunt & Samman, 2019). These findings support the fact that without proper collective
effort for regulation and organization, gender-based economic inequalities will continue to grow
in the gig economy. A worker's gender mustn't entitle them to lesser of greater pay for the same
amount of work. Through unionism, these digital platforms can be harmonized and standardized
to weed out the disparities of gender-based earning to the ridge the growing rate of income
inequality.
However, the Unitarist employment relation theory would argue that unions are not
needed at digital economic platforms because there is no conflict. This is further supported by
the fact that most gig laborers are considered independent contractors and therefore not entitled
to employment benefits. To some extent, trade unions might do more harm than good to the gig
workers. For instance, by setting minimum working hours unions to interfere with the flexibility
of working hours enjoyed by gig workers. Further, unionism will erode the individual identity of
a freelancer in the sense that their actions will be bound by the directions of the trade unions to
which they belong thereby erasing the individuality and freedom currently enjoyed by freelance
workers on the digital platforms.
Generally, the gig economy is a digitalized workplace that helps eradicate
unemployment by providing flexible working hours and payment. Currently, the gig economy is
unregulated and not unionized. Similar to the traditional workplace, gig workers are entitled to

Gig Economy 6
better working conditions, protection of the law full employment benefits because they are
indeed workers and not independent contractors.
References
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Emilio, R. C., Zamponi, L & Caciagli, C.(2019).Labour activism and social movement unionism
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Gandhi, R. (2012). Trade Unions: A Legal Succor to the Deprived Masses or a Travesty of
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