NAVIGATING DIVERSE FORMS OF WORK:
How to Advance Decent and Fair Work
Output of the Reshaping Work Dialogue Project
Jovana Karanovic, Jelena Sapic and Zachary Kilhoffer
Table of Content
Executive Summary
The European economies and labour markets are undergoing an unprecedented digital transformation that has accelerated the rise of diverse (non-standard, new) forms of work (DFW). While the labour market transformation has been underway for decades, rapid technological advancements and, more recently, the COVID-19 pandemic, have expedited the trend, compelling policy makers around the EU member states to devise adequate responses.
Technologically-empowered solutions, and particularly algorithmic management, have introduced novel ways for organising and coordinating workforces. Markedly, data is becoming a key asset for companies and workers. The COVID-19 pandemic has further normalised remote working, resulting in the digital economy taking a foothold.
The European regulatory landscape is undergoing major revisions of the existing laws and regulations. The most recent initiatives aim at improving the working conditions of people working through digital labour platforms1, granting some categories of solo self-employed workers collective bargaining rights2, granting those working digitally to disconnect outside their working hours3, implementing harmonised rules on artificial intelligence4, and ensuring adequate minimum wages in the EU5.
Striking a balance between fair and decent working conditions and unlocking the innovative xpotential of DFW is a key challenge ahead for policy makers.
Crucially, a comprehensive outlook on DFW and the road towards ensuring such working conditions requires input from various stakeholders, such as companies, startups, unions, research institutions, and advocacy groups. To tackle the complexities of the challenges that lie ahead, Reshaping Work facilitated a multistakeholder dialogue tackling four key topic areas of paramount relevance for DFW: access to social protection Proposal for a Directive of the European Parliament and of the Council on improving working conditions in platform work, COM(2021)762 final.; worker representation Communication from the Commission: Guidelines on the application of EU competition law to collective agreements regarding the working conditions of solo self-employed persons (C(2021)8838 final).; algorithmic management and transparency European Parliament resolution of 21 January 2021 with recommendations to the Commission on the right to disconnect (2019/2181(INL)).; and re-skilling, upskilling, and micro-credentialsProposal for a Regulation of the European Parliament and of the Council Laying Down Harmonised Rules on Artificial Intelligence (Artificial Intelligence Act) and Amending Certain Union Legislative Acts, COM(2021)206 final..
The report presents the outcome of twelve roundtable discussions facilitated by the Reshaping Work Dialogue project, supported by a systematic literature review of the topic and the knowledge of independent experts that partook in writing and reviewing this report.
Reshaping Work is committed to continuing to gather a multitude of stakeholders in order to provide timely and relevant information on topics concerning DFW by promoting the principles of diversity and inclusion.
Policy Pointers
- Ensure baseline social protection for all workers, regardless of their legal status.
- Collective bargaining to be extended to all workers, regardless of their employment status.
- Stimulation of social dialogue that incorporates the views of all parties with a stake in the debate, including unions, companies, consumers, and others.
- Workers should receive more information on algorithms affecting them, as foreseen by the proposed platform work directive. Information on algorithmic systems should be a part of an onboarding process for new workers, which can easily be implemented by labour platforms.
- Workers should have greater access to their own data, while respecting genuine privacy concerns.
- Credential recognition requires a European-scale solution. A centralised authority, which can “certify the certifications”, would help ensure trust, and promote inter-European mobility, data portability, and the interoperability of credentials.
- The bottom-up approach, including the worker voice and social dialogue, is essential for developing adequate re- and up-skilling initiatives.
Introduction
The world of work is undergoing a startling change. Technological advancements, cloud computing, and broadband connectivity, in combination with changing attitudes towards life-time careers, are attracting the attention of researchers, policy makers, and business professionals alike. Conceivable transformative effects on working life and the economy at large are soliciting reimagination of the way our labour markets are structured and governed.
The rapidly changing nature of employment is blurring the distinction between its standard and non-standard forms. Non-standard work arrangements, such as contract work, temporary agency work, and platform work cover a large proportion of work arrangements, referred to as ‘diverse forms of work’ (DFW)1 to capture their representativeness. They denote work arrangements that go beyond full-time, open-ended contracts with a single employer (OECD, 2019a).
Historically, labour markets have been characterised by multiple work arrangements, ranging from full-time and part-time work, to contract and seasonal work, and zerohour contracts. Digitalisation, however, has enabled the transformation of existing work arrangements and the rise of new ones. While some sectors that traditionally formed the cornerstone of DFW (e.g., the agricultural sector) have been in decline for some time, others (e.g., the tech sector) are on the rise.
It is estimated that one-third of the workforce in OECD countries (OECD, 2019a) and 40% of workers in the European Union (European Commission, 2020a) are engaged in some form of a diverse work arrangement.
Opportunities brought by DFW are worth noting. First, DFW are expanding the local markets by providing new job opportunities. Some work arrangements, those mediated by digital labour platforms for instance, provide relatively low entry barriers to the labour market, enabling workers to secure additional income streams. For individuals with reduced labour market opportunities (e.g., disabled or elderly individuals), DFW (e.g., online work) provide a chance to participate in the global labour market whilst not having to leave their home country (this also benefits home countries by e.g., preventing brain drain). Second, DFW can be a stepping stone towards new careers and a lifeline during times of economic hardship. Finally, DFW are in line with a decrease in job tenure, whereby younger generations prefer to try out multiple roles and generally place a higher value on work autonomy (OECD, 2019a).
Most notably, jobs mediated through digital labour platforms have seen an expansion in recent years. Digital labour platforms connect users (individuals and businesses) for the exchange of services through electronic means, whereby the matching happens online while tasks may be carried out on location or online.
1 ACCESS TO SOCIAL
PROTECTION
ACCESS TO SOCIAL PROTECTION
The European economies and labour markets are undergoing an unprecedented digital transformation that has accelerated the rise of diverse (non-standard, new) forms of work (DFW). While the labour market transformation has been underway for decades, rapid technological advancements and, more recently, the COVID-19 pandemic, have expedited the trend, compelling policy makers around the EU member states to devise adequate responses.
Box 1. How do platforms attempt to reduce waiting time?
The case of food delivery. Delivery Hero, a food delivery platform, has a shift model whose advantage is the anticipation of demand and thus predictability of working arrangements. By utilising this model, the platform can guarantee tasks and earnings, while minimising waiting time. Delivery Hero also guarantees a minimum number of paid tasks, which protects a worker if a task is cancelled. The downside in this case, however, is reduced flexibility of working time and reduced opportunities for workers unable to get a shift (though this may result in higher earnings for workers that do get a shift).
The case of a high-skilled platform. On the other hand, Roamler, a Dutch information technology company, which specialises in crowd-sourced solutions for businesses, offers an overview of tasks regardless of a sector. The platform estimates the average time required to complete a task, including the travel time. Based on this, the platform sets the price. Information on the pricing and time required gives workers a chance to make an informed decision on whether to accept the task. The downside in this case is the inability to set one’s own prices (which means reduced ability to compete based on price, but also less risk of a race to the bottom).
Technologically-empowered solutions, and particularly algorithmic management, have introduced novel ways for organising and coordinating workforces. Markedly, data is becoming a key asset for companies and workers. The COVID-19 pandemic has further normalised remote working, resulting in the digital economy taking a foothold.
The European regulatory landscape is undergoing major revisions of the existing laws and regulations. The most recent initiatives aim at improving the working conditions of people working through digital labour platforms1, granting some categories of solo self-employed workers collective bargaining rights2, granting those working digitally to disconnect outside their working hours3, implementing harmonised rules on artificial intelligence4, and ensuring adequate minimum wages in the EU5.
Striking a balance between fair and decent working conditions and unlocking the innovative xpotential of DFW is a key challenge ahead for policy makers.
Crucially, a comprehensive outlook on DFW and the road towards ensuring such working conditions requires input from various stakeholders, such as companies, startups, unions, research institutions, and advocacy groups. To tackle the complexities of the challenges that lie ahead, Reshaping Work facilitated a multistakeholder dialogue tackling four key topic areas of paramount relevance for DFW: access to social protection Proposal for a Directive of the European Parliament and of the Council on improving working conditions in platform work, COM(2021)762 final.; worker representation Communication from the Commission: Guidelines on the application of EU competition law to collective agreements regarding the working conditions of solo self-employed persons (C(2021)8838 final).; algorithmic management and transparency European Parliament resolution of 21 January 2021 with recommendations to the Commission on the right to disconnect (2019/2181(INL)).; and re-skilling, upskilling, and micro-credentialsProposal for a Regulation of the European Parliament and of the Council Laying Down Harmonised Rules on Artificial Intelligence (Artificial Intelligence Act) and Amending Certain Union Legislative Acts, COM(2021)206 final..
The report presents the outcome of twelve roundtable discussions facilitated by the Reshaping Work Dialogue project, supported by a systematic literature review of the topic and the knowledge of independent experts that partook in writing and reviewing this report.
Reshaping Work is committed to continuing to gather a multitude of stakeholders in order to provide timely and relevant information on topics concerning DFW by promoting the principles of diversity and inclusion.
Policy Pointers
- Ensure baseline social protection for all workers, regardless of their legal status.
- Collective bargaining to be extended to all workers, regardless of their employment status.
- Stimulation of social dialogue that incorporates the views of all parties with a stake in the debate, including unions, companies, consumers, and others.
- Workers should receive more information on algorithms affecting them, as foreseen by the proposed platform work directive. Information on algorithmic systems should be a part of an onboarding process for new workers, which can easily be implemented by labour platforms.
- Workers should have greater access to their own data, while respecting genuine privacy concerns.
- Credential recognition requires a European-scale solution. A centralised authority, which can “certify the certifications”, would help ensure trust, and promote inter-European mobility, data portability, and the interoperability of credentials.
- The bottom-up approach, including the worker voice and social dialogue, is essential for developing adequate re- and up-skilling initiatives.
Introduction
The world of work is undergoing a startling change. Technological advancements, cloud computing, and broadband connectivity, in combination with changing attitudes towards life-time careers, are attracting the attention of researchers, policy makers, and business professionals alike. Conceivable transformative effects on working life and the economy at large are soliciting reimagination of the way our labour markets are structured and governed.
The rapidly changing nature of employment is blurring the distinction between its standard and non-standard forms. Non-standard work arrangements, such as contract work, temporary agency work, and platform work cover a large proportion of work arrangements, referred to as ‘diverse forms of work’ (DFW)1 to capture their representativeness. They denote work arrangements that go beyond full-time, open-ended contracts with a single employer (OECD, 2019a).
Historically, labour markets have been characterised by multiple work arrangements, ranging from full-time and part-time work, to contract and seasonal work, and zerohour contracts. Digitalisation, however, has enabled the transformation of existing work arrangements and the rise of new ones. While some sectors that traditionally formed the cornerstone of DFW (e.g., the agricultural sector) have been in decline for some time, others (e.g., the tech sector) are on the rise.
It is estimated that one-third of the workforce in OECD countries (OECD, 2019a) and 40% of workers in the European Union (European Commission, 2020a) are engaged in some form of a diverse work arrangement.
Opportunities brought by DFW are worth noting. First, DFW are expanding the local markets by providing new job opportunities. Some work arrangements, those mediated by digital labour platforms for instance, provide relatively low entry barriers to the labour market, enabling workers to secure additional income streams. For individuals with reduced labour market opportunities (e.g., disabled or elderly individuals), DFW (e.g., online work) provide a chance to participate in the global labour market whilst not having to leave their home country (this also benefits home countries by e.g., preventing brain drain). Second, DFW can be a stepping stone towards new careers and a lifeline during times of economic hardship. Finally, DFW are in line with a decrease in job tenure, whereby younger generations prefer to try out multiple roles and generally place a higher value on work autonomy (OECD, 2019a).
Most notably, jobs mediated through digital labour platforms have seen an expansion in recent years. Digital labour platforms connect users (individuals and businesses) for the exchange of services through electronic means, whereby the matching happens online while tasks may be carried out on location or online.