Boots & Sabers

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Owen

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0750, 18 Sep 17

Sharing Wealth and Risk in the Gig Economy

It does take two to tango… even in an employment relationship.

First, job insecurity is has always existed; it was once the historical norm. The construction industry has always been project-based and seasonal like agriculture; seafarers were traditionally hired for a voyage. The entertainment industry was literally the “gig economy”. These are among the industries that routinely discarded workers when the job was done.

What is new is the extension of insecure work into industries where it was not previously common. This has been facilitated by new technology and the widespread use of contractual arrangements that seek to limit workers’ rights.

Second, the vision of a brave new world of portfolio, boundaryless, and protean careers was intended for professionals who could sell high-value parcels of work. It suits those with enough economic confidence to fly without the safety net of a regular income. These ideas were not dreamed up for the bicycle courier, the taxi driver or the peripatetic care worker, and certainly not for those trapped in a low-pay, no-pay cycle.

Third, the career management rhetoric lost sight of the distinction between is and should. Growth in atypical working patterns does not imply a moral imperative that workers should facilitate this development by shaping themselves into the desired mould. Particularly where some employers might be seeking to offload responsibility for sick pay, holiday pay, and travel between jobs.

Flexibility in human resources allows employers to scale operations up and down rapidly, and with minimal cost. This is not just about keeping wage bills down, but also about employers reducing levels of economic risk, while workers increase their share of risk bearing. The challenge of global competition may be inevitable, but an unquestioning compliance with employer regimes for sharing wealth and risk is not.

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0750, 18 September 2017

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