An expert says proposed improvements for app-based gig-workers announced by Labour Minister Harry Bains Thursday (Nov. 16) take a “step in the right direction” but are insufficient.
Others offer more favourable, but still mixed assessments.
Bains announced that proposed regulations effective in early 2024 would apply 120 per cent of the provincial minimum wage to ride-hail and food-delivery workers while working. They would also become eligible for workers compensation benefits as part of other measures designed to create safe working environments.
Other proposed measures promise to protect the tips of workers and give them greater clarity about how much they earn when taking jobs over their respective apps. Platform companies must also share with workers pick-up and delivery locations for assignment, so they can assess the desirability and safety of assignments before accepting them.
More broadly, the province plans to define online platform workers as employees subject to some but not all of the standards and protections enjoyed by traditional workers.
Bains said the changes reflect detailed consultations with all players in the sector.
“We are solving the problems that matter the most to the ride-hail and food-delivery workers,” he said. “Our goal is to balance the needs of workers, while supporting the continuation of the services that so many of us have become accustomed to rely on.”
Véronique Sioufi, researcher for racial and socio-economic equity with the Canadian Centre for Policy Alternatives, BC Office, praised government’s decision to recognize gig-workers as employees. Platform companies have long used the misclassification of these workers to underpay them while burdening them with additional costs and risks, she said.
But if the proposed changes are a “step in the right direction,” they do not go far enough, she added.
“So if they deserve to be treated fairly, why are they getting fewer protections than everyone else?” she said. “They (government) says that they are offering up basic employment standards here, but the Employment Standards Act is already our basic. So if this is less than ESA, this is less than the basic.”
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In fact, Sioufi believes that some aspects of the proposed changes will have a contrary effect on workers. While they will be paid 120 per cent minimum wage while working, that extra amount won’t cover their costs while waiting to accept assignments, she said.
“What this does, it lets platform companies kind of flood the market with as many workers as they want, because they are not responsible for being efficient,” she said. “They are not responsible for all the time that all those workers are going to be out there waiting for the next assignment, so there is going to be lots more competition for those assignments, even though those assignments might be paid at a slightly higher rate now.”
Ultimately, more workers fighting over fewer assignments likely means that less money in their pockets, she said.
“Their hourly wage is most likely going to go down. This is something that the government was aware of ahead of time. Economist warned them and government put this out in their discussion paper. They knew that this would be a risk if they did not pay workers for all of of their work time (inclusive waiting to accept assignments).”
So why did government put this forward?
“I think this is a reflection of the strength of lobbying from platform companies,” Sioufi said. “I think there was a lot of thought and effort put into this and I think we shouldn’t minimize the fact that this is a really important in recognizing that these workers are employees…it’s still a really good first move.”
When asked about the influence of companies like Uber on the process, Bains rejected the suggestion that government gave the companies exactly what they wanted. Bains said his ministry looked at a wide range of possible solutions at great length.
“We believe this is the right balance,” he said. “But having said all of that, we will be monitoring going forward. This is a first step.”
He added that the proposed measures go beyond what companies like Uber wanted.
“So there are lots of different things (in the proposal), but there are certain things that the (companies) brought to our attention and we believe that we are taking the right balance, make sure that the jobs are preserved (and) at the same time workers are treated with fairness and dignity.”
With that last comment, Bains indirectly alluded to the decision by some platform companies to pull up stakes in jurisdictions after they had introduced tougher measures to protect workers.
Sioufi said she hopes Bains is right when he called the proposed measures a first step but questioned the narrative that frames this issue as a choice between tougher protection and preserving jobs.
“(If) you look at London (in the United Kingdom), where they have applied employment protections to workers, Uber is still super profitable,” she said. “They are doing just fine. So no, they don’t have to leave.”
Sussanne Skidmore, president of the BC Federation of Labour, said the proposed measure represent some progress for ride-hail and food-delivery workers, but still leaves them without the same set of protections provided to every other worker in B.C.
“We’re especially relieved that they heard us on the need for workers’ compensation coverage,” she said. “But we are deeply concerned over where this plan falls short, especially because it denies workers key protections under the law, like paid sick leave.”
Ian Tostenson, president and chief executive officer of the BC Restaurant and Foodservices Association, said food deliveries account for 30 per cent of his industry’s business. “So we rely on it,” he said. “So the approach of having a motivated workforce is really good.”
Tostenson said he likes the “balanced tone” of the legislation. “So we are happy but devil is in the details.”
Uber Canada said in an emailed statement that the company is supportive of policies that protect the flexibility and independence of app-based workers while offering benefits and job-tailored protections
“With the introduction of an ‘online platform worker’ category and offer of benefits and protections like a 120 per cent minimum wage guarantee and workers’ compensation coverage, today’s announcement by BC is encouraging,” it reads. “However, we will need to review the legislation and regulations closely once available.”
@wolfgangdepner
wolfgang.depner@blackpress.ca
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