Page 7 - Voice and representation of platform driver in VietNam

INTRODUCTION 1

INTRODUCTION

The benefits and costs of gig and platform work for
The way in which we have this flexible model employers, workers and society remain highly contested.
means that there are certain ways in which you can Advocates contend that digital labour platforms can
protect yourself. So things like collective bargaining economically benefit socially marginalised groups
and other things, because of the flexible nature of our including the unemployed, geographically isolated, and
work, because you can come on and off the platform, refugees (De Stefano, 2016; Byrne and Waters, 2015).
the purpose that collective bargaining was originally For firms, gig work combines technological innovation
structured for doesn’t necessarily hold. with various contractual relationships that can reduce
transaction and labour costs, provide ‘numerical
flexibility’ in the face of fluctuating demand, and
Amit Singh, Uber Head of Work-Policy and Research 1 increase competitiveness (Peck and Theodore, 2012;
ILO, 2016). However, like non-standard employment
Flexibility, as argued by this top researcher of Uber – more broadly, work content and arrangements in the
one of the largest firms in the global gig economy, is gig economy are diverse. Despite the possible benefits,
the reason platform workers can protect themselves jobs in the gig economy can also be structured in ways
(choosing to stay or leave the platform) without the that can negatively impact workers (unpredictable
need of traditional industrial relations institutions, such scheduling, inconsistent earnings, unreliable long-term
as through collective bargaining. Is it true, as argued by employment prospects) and firms (unfair competition,
the Uber manager, that platform workers can protect lower productivity and absenteeism) (Ibid, see also: Peck
themselves and that the usual mechanisms of collective and Theodore, 2012; ILO, 2016; De Stefano, 2016).
voice, representation, and collective bargaining have
become outdated in the gig economy? This research, In Vietnam, the emergence of work platforms started in
conducted by ERC and members of the VLRN and 2014 with the entrance of Grab and Uber, the two ride-
funded by Friedrich Ebert Stiftung Vietnam, sets out hailing platforms. Since then, despite work platforms
to answer these questions through examining the case mushrooming in Vietnam, the ride-hailing ones (which
study of platform drivers in Vietnam. have since extended to more than 20 additional
services) remain the most developed and engage the
Gig and platform-based work is one type of non- largest number of workers. By the end of 2019, the
standard work facilitated through technology and five biggest vehicle-sharing platforms (Grab, GoViet,
digital markets, on-demand. The number of digital FastGo, Be, and MyGo) collectively had 170,000 (car)
labour platforms, both online web-based and location- drivers and 400,000 (motorbike) riders. 6
5
based, has grown rapidly over the world over the
past decade. Online web-based platforms (microtask, Platform workers are those who are self-employed
freelance and competitive programming) and location- and responsible for their own social protection and
based platforms in the taxi and delivery sector, fulfilling their own tax obligations. Their employment
globally, saw at least 777 active platforms operating relationship with the platform companies, in
in January 2021 (ILO 2021). The number of platforms many countries including Vietnam, remains largely
in the delivery sector was the highest (383), followed ambiguous. As such, they can be defined as informal
by online web-based platforms (283), and the taxi workers or independent contractors, which means
sector (106). Estimates suggest that at least seven they are excluded from forming and joining unions
million platform workers worldwide perform work and engaging in collective bargaining. Despite these
worth approximately USD5 billion annually outsourced challenges, the platform drivers and riders in Vietnam
through applications or platforms. While platform have managed to mobilise for (informal) collective
2
economy work and workers currently comprise a small actions which, in many cases, went beyond one
share of employment and the overall labour force , this platform or locality. For instance, in 2018, thousands
3
form of work is growing exponentially. 4 of Grab drivers and riders organised collective actions

1 ILO Facebook Event on 21 November 2017 (Link: https://www.ilo.org/global/about-the-ilo/multimedia/video/video-interviews/WCMS_601901/
lang--en/index.htm).
2 Kuek, S.C., Paradi-Guilford, C., Fayomi, T., Imaizumi, S., Ipeirotis, P. (2015). The Global opportunity in online outsourcing, Washington DC,
World Bank.
3 In 2018, 36 percent of US workers joined the gig economy through either their primary or secondary jobs. This rate is expected to rise to more
than 50 percent by 2023. This figure in Europe was less than 10 percent (Pendell 2018; Choi 2019).
4 Berg, Janine.
5 https://www.tienphong.vn/xa-hoi/so-phan-hang-van-lai-xe-cong-nghe-di-ve-dau-1618303.tpo
6 https://laodong.vn/kinh-te/hang-tram-ngan-xe-om-cong-nghe-se-vuong-khau-tru-trong-thue-thu-nhap-752598.ldo

Voice and representation of platform drivers in Vietnam