Edinburgh task force driving change for the gig economy

The City of Edinburgh Council has pledged its support to Edinburgh’s vital gig economy workforce, a significant and growing aspect of the city’s labour market.

It comes as the City looks to promote better access to fair work standards for people following a series of discussions with workers, trade unions, academics, Scottish Enterprise officials, and civil servants from the Scottish Government.

This inquiry, led by Edinburgh’s Gig Economy Task Force and spearheaded by the Council, was the preliminary piece of work to understand the key issues as well as the immediate actions to be taken alongside the long-term legislative changes that need to be considered so gig workers feel empowered, are treated equally and are able to make a fair wage for a fair day’s work.

Next week (on 24 March) a report from the Task Force will feedback its seven recommendations* to the Housing, Homelessness and Fair Work Committee.

If agreed these recommendations will be developed into an action plan to be brought back to committee in Autumn this year (2022). This will focus on short, medium and long-term priorities which the Council and partners across the city will be asked to focus on to improve access to fair work for people working across the gig economy, including zero hours contract workers.

One key area recognised by the inquiry was to understand gig workers’ rights to accessing the data collected on them and what transparency exists on the way company algorithms use this data to determine how jobs are offered, how much workers earn, and other challenges workers face.

If agreed, as part of the recommendations the Council will build on the findings, and continue to work with gig workers, businesses and the Scottish Government to understand more about existing rights of access to worker’s’ data while also considering whether data driven innovation tools could be used to help gig workers analyse and better understand their earnings and conditions.

The other recommendations* focus on issues relating to licensing and regulation of the gig economy, public sector procurement, alternative business models and establishing a gig economy worker’s charter for Edinburgh.

The short-life Task Force was established in November 2021 as part of the work plan for the Living Wage City Action Group, and after the Council welcomed the UK Supreme Court’s decision to confirm the status of Uber drivers as workers.

Its objective was to understand the real experiences of workers in the gig economy in Edinburgh, while also looking to explore actions that will tackle the concerns and challenges they face and could improve working conditions, rights and quality of employment.

During its inquiry the Task Force recognised that flexibility and ease of access to employment can be a positive aspect of these roles for some workers, usually those using it as a ‘top-up’ to another income stream or those who have caring responsibilities, or for example students.

However, the growth of the sector has been associated with concerns over low rates of pay, poor income security, risk of in-work poverty, poor opportunities for progression, as well poor working conditions and worker safety.

It is recognised that a growing number of people are becoming reliant on gig economy work as the sole source of income, and they tend to be the people most impacted by poor working conditions and unreliable pay.

Councillor Kate Campbell, Convener of the Housing, Homelessness and Fair Work Committee and chair of the Gig Economy Task Force said: “As part of the action plan for the Living Wage City accreditation, and as part of our fair work agenda, I knew it was vital that we did some work to look at the gig economy in Edinburgh and the impact on pay, rights and working conditions.

“The Gig Economy Task Force was put together with the aim of getting a clear understanding of where the real issues lie, what powers the council has to improve conditions now, and where we need to focus on, and implement changes, in future.

“It’s pretty clear that there is a strong power imbalance. For many gig economy workers their shifts, performance monitoring and pay are controlled by an algorithm. This can be incredibly disempowering. We need to look at who has access to data, and how that data is used, and understand what reforms could empower workers.

“We also came to the conclusion that we need to look at current licensing powers, and procurement. And look at strengthening workers’ rights, raising awareness of those rights and understanding how the categorisation of workers impacts on their working conditions. For example gig economy workers are classed as ‘self employed’ – but the reality of their day to day working lives is very far from what most of us would consider self employment.

“I hope we’ll come together next week at Committee and agree the recommendations, so that we can get on with these actions, starting the journey to dramatically improving the working conditions for the growing number of gig economy workers in our city.”

Councillor Mandy Watt, Vice Convener of the Housing, Homelessness and Fair Work Committee said: “This task force was established in response to a motion that we raised regarding Uber and was widened to include other gig economy and zero hours workers by the convenor.

“Our intention is to highlight the rights that these workers should already have and to find ways of supporting their efforts to achieve safer working practices and fairer terms and conditions.”

The Gig Economy Task Force was chaired by the Convener of the Housing, Homelessness and Fair Work Committee, and comprised workers who have first-hand experience of the gig economy and precarious work in Edinburgh, as well as workers’ representatives, academics, alongside relevant policy leads from the Council, Scottish Government and its agencies.

*Gig Economy Task Force Recommendations:

1. A costed proposal for a dedicated workers’ hub in Edinburgh, providing access to advice and support.
2. A costed proposal for ongoing campaign work to provide information on and raise awareness on worker rights in Edinburgh, good working practices, and how to access support.
3. Licensing: The Council should facilitate and host further work with gig economy and precarious workers, businesses and government on issues relating to licensing and regulation of gig economy and precarious employment. 
4. Procurement: The Council should facilitate and host further work with workers, businesses and government on issues relating public sector procurement fair work and the gig economy. 
5. Data Rights and Access: The Council should facilitate and host further work with gig economy workers, businesses and government on issues raised during this inquiry relating data rights and access for workers in the gig economy. 
6. Alternative Gig Economy Business Models: The Council should facilitate and host further work with gig economy workers, businesses and government to hear more about examples observed in other European cities.
7. A workers’ charter for Edinburgh: Building on all of the above, the Council should facilitate further engagement with gig economy workers and businesses.

The development of this Task Force has been informed by the Council’s Fair Work Action Plan and Edinburgh Economy Strategy, both of which emphasise the importance of fair work that provide citizens with dignity and security of income.