It’s regrettable that Zomato, Swiggy, Zepto, Uber etc will now have to deduct 5% of commissions paid to delivery/driver folks and pay that to the state Govt 🙏🙏 The Govt says, they will put it into a welfare fund! Social security for gig workers - sounds noble. But, it’s a textbook case of good intentions paving the way to chaos. .. First, the problems. - As per Karnataka Govt’s economic survey, Bengaluru has ~2 lakh gig workers working for such platforms - A 5% fee will either squeeze workers’ earnings or get passed to consumers like us as platforms try to ensure that the in-hand made by gig workers does not fall Also, the bill promises to end arbitrary terminations. But how? Take any of the platforms. They don’t employ gig workers. They call them business partners who can log in and out any day or time, while platforms determine their income accordingly. It’s a promise the Govt can’t hold 🙏🙏 .. Second, the administrative nightmare. The Gig Workers’ Welfare Board will collect and manage funds, but history shows that these boards are often dysfunctional. - Times of India had reported in Dec, how Karnataka Govt’s own Labour Welfare Fund spent only 28% of its funds on workers’ schemes from 2019-24, with 40% going to admin costs like salaries - Economic Survey of 2023 had also mentioned that the Building and Other Construction Workers’ Welfare Fund has Rs 50k crore unutilized - 70% of its corpus - due to poor outreach and red tape And, we trust this new fund to be any different? .. Sure, there are few positives. The bill’s grievance redressal mechanism could help workers fight unfair treatment, a real issue in a sector with no job security. If implemented as promised, state Govt might offer gig workers healthcare or insurance. Karnataka’s move could also set a precedent, pushing other states to prioritize gig workers’ rights. But the harsh truth is that most such Govt funds in India fail because of inefficiency and corruption. Lack of awareness, complex processes, and bureaucratic apathy ensure funds remain unutilized while workers suffer 🙏🙏
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