Background:
Although digital platforms may offer opportunities for women to work freelance and thereby with flexibility, they also pose a significant risk of trapping them in a cycle of debt. Realities of workers in the context of digitalisation share lack of job and income security, social protection, occupational safety and health, social reproduction work considerations, and the traditional employer-employee relationship, as well as due to the very meagre wages per hour. All these result in increased household debt, which thus becomes a class and gender struggle that needs to be documented and addressed.
This research examines digitalisation and how it contributes to the mounting debts of digital women workers in various industries, specifically food delivery in Sri Lanka, the media and creative industry in Indonesia, Business Process Outsourcing (BPOs) in the Philippines, and domestic cleaning, beauty and wellness in Thailand.
Key findings:
The shift towards a digitalisation regime has resulted in a rise of informal, precarious and contractual jobs, deviating from universal decent work standards. Furthermore, the digitalisation of work is discriminatory especially towards women, as it exploits and devalues their work as a means to gain a competitive edge, reinforcing patriarchal gender roles and social stigmas. This perpetuates the unjust sexual and gender-based division of labour and reinforces gender inequalities and violation of women’s human rights in the workplace.
Women in digital jobs face several challenges, including job insecurity, low pay, inadequate facilities in their place of work, social reproduction and lack of support for Occupational Safety and Health (OSH), unclear employee-employer relationship as well as difficulty in exercising their rights to Freedom of Association (FoA). This leaves them vulnerable to exploitation by the platform and employers who compel them to work long hours for poverty wages. They are also not considered as employees, but rather as independent contractors, and as such, are deprived of their labour rights and social protection such as social and health protection, thus putting them at risk of facing financial difficulties such as in times of accidents and other emergencies.
Gig economy offers new “opportunities” but doubles the burden of women
The gig economy claimed that it has opened up new economic opportunities for women seeking employment. However, it does not give consideration in any way to the fact that society still expects women to fulfil their caregiving responsibilities without any pay or social support, making it a daunting and costly task.
The challenges faced by women in balancing their productive work and reproductive responsibilities can leave them more exposed to digital vulnerabilities. In such situations, finding alternative solutions to fulfil their work-related obligations becomes imperative due to inadequate support from their employers, alongside managing their reproductive duties.
In Sri Lanka and many other countries, it is customary for women to fulfil the role of primary caregivers at home without receiving any compensation. Women’s care responsibilities typically start before sunrise (to prepare children for school, and male family members for their work) and continue till the end of the day. Additionally, women are responsible for picking up their children from school, even if their husbands are available to do so. Unmarried or childless women often extend their care to family members who need them. Unfortunately, many women do not have the space to question this traditional role.
Thus, platform work has become popular for women seeking to work from home. However, the employers of digital work have passed on the burden to arrange care responsibilities on women (especially in the context there is a lack of employer-employee relationship and subsequent labour rights), which results in the rights violations of workers and violence such as privileges and even encounter gender-based biases such as pregnancy discrimination, limited break times, a lack of breastfeeding facilities, and exposure to health risks due to working or commuting at night/in the early hours. These show that the gig economy is designed to systemically exploit women’s bodies by reinforcing gender roles such as care duties/work.
Digital platforms offer job/income opportunities, but largely lead to greater labour exploitation and poverty wages
Digitalisation has created an employment landscape not only with greater labour flexibilisation and informality, but also unequal job opportunities. While companies benefit from uncertain, insecure employment arrangements, workers lack job security and access to benefits.
The gig economy has erased the employer-employee relationships. Delivery partners, as in the case of Sri Lanka often face difficulties in defining their employment relationship with their employers, as they are frequently classified as independent contractors. This classification can cause confusion over their entitlements and benefits, leading to mistreatment and decreased motivation. The wages earned by women drivers are dependent on the number of orders they complete and the distance they cover. During peak hours, they have the potential to earn up to USD 311.22 (LKR 100,000) per month.
The BPO industry, on the other hand, offers flexible employment terms that can affect job security. Agents may experience temporary unemployment without pay due to downsizing, and workloads can be unpredictable.
Employees of Alorica West also reported that they experienced “hot seating” or no fixed workstations in their workplace, requiring employees to find available spaces quickly upon arrival, often resulting in tardiness. Floating status, a precarious situation, involves temporary unemployment with no pay until workers are placed in another account. Interlocutors shared that even those who are regular employees could lose their job if they do not hit their work metrics, or if their company loses their clients.
(BIEN country research report, 2024)
In Indonesia, media and creative industry workers face challenges negotiating employment agreements. One worker’s health deteriorated due to prolonged typing and coursework. The current state of social protection and health support is insufficient, primarily due to the absence of employment contracts. Many workers find themselves earning low wages that do not provide adequate financial stability or access to health services. This support deficit leaves them with limited financial resources, forcing them to rely on their parents’ financial support.
Algorithmic Discrimination leads to unfair decision-making process on orders and wages
In the platform economy, many companies heavily rely on algorithms to automate various aspects of workforce management. These algorithms assign shifts to workers, handle human resources tasks such as pay calculations and performance reviews, and closely monitor and even discipline workers based on predefined criteria. The impact of algorithmic decisions, such as deactivating workers’ accounts, appears to have a gendered dimension in digital domestic work. This suggests that algorithms may inadvertently perpetuate or exacerbate gender discrimination in the workplace. Workers subject to algorithmic management have reported experiencing various forms of manipulation in their working arrangements and conditions. This can range from unfair or inconsistent pay practices to scheduling that fails to account for individual circumstances or preferences.
Women workers in Thailand feel guilty about declining client requests because they are struggling between their care duties and clients during those times and struggling to earn income. Unfortunately, it affects how this may impact the platform’s reward-based algorithm. They worry that refusing offers could reduce their chances of attracting future clients. They believe that accepting more clients will result in higher ratings and more favourable feedback, ultimately enhancing their opportunities to gain additional clients.
Platform workers face challenges in earning a sufficient income, often requiring them to work more than 12 hours a day, yet they still lack a decent livelihood. The algorithms that dictate their work are not neutral; they specifically target young people by offering incentives to attract them. This creates a cycle that traps these workers in a new form of informality, ultimately leading to poverty. The companies are prioritising newly joined workers; “initially, we could work as much as we wanted, but now there’s a maximum limit of 12 hours due to increased riders. This ensures everyone gets a fair share of work” (Sri Lankan women workers, interviewed by CEPA 2023).
The organisation of platform workers is crucial for facilitating meaningful social dialogue and fostering robust industrial relations within the platform economy. However, accomplishing this objective presents significant challenges, as it involves navigating scattered workers who operate independently, compete with each other to grab shared consumers, and lack employment structures that include social protection. All of these factors have been caused by algorithm management.
Using algorithms in workforce management raises essential questions about fairness, transparency and the potential for bias in decision-making processes. The research in Thailand strongly recommends the Thai government to understand algorithmic automated decision making processes because they lack knowledge and understanding of algorithms and platform-controlled work, resulting in platform workers losing various rights, such as access to minimum wage, social protection and collective bargaining as labour unions.
Characteristics of the gig economy exploit and push women further into poverty and indebtedness, as well as worsened occupational health and rights to organise
The digitalisation of work is closely related to the debt cycles of women workers. Many women working in media and creative industries, BPO and platform industries are struggling to make ends meet, facing financial challenges due to their low wages and mounting household debts.
According to the accounts of women workers that our research partners in Indonesia have collected, there is a strong correlation between low wages, erratic income patterns in platform work; and snowballing household debt in Indonesia. Due to the financial pressures from wage conditions and the cost of living, Indonesian women in the digital industry often resort to private loans.
In Sri Lanka, many workers are seeking out delivery services to bolster their earnings and tackle their debts. Unfortunately, the digital labour market can be opaque, leading to workers being deprived of their rights and safeguards, which can hamper their work equipment, social security, and career growth. As a result, some labourers are forced to resort to borrowing to cope with the challenges that arise.
In Thailand, women workers expressed that being engaged as a worker in the gig economy meant they were expected to cover their own work-related expenses such as travel and transportation, equipment, as well as access to a phone and internet services. This makes the gig work an additional burden rather than an income opportunity especially for women who provide care work for their families. Yui, a 47 year old domestic worker, had the responsibility of taking care of her niece because her brother refused to care for her. Women working in the platform are expected to financially support their parents, including shouldering their parents’ debts. Even a tiny change in their usual monthly expenses can upset their budget, making it hard to make ends meet. However, they find it hard to obtain loans or mortgages from private loans due to the unpredictable nature of their income. In Thailand, banks regularly require applicants to prove financial stability such as monthly income slips from employers. Some women are unable to provide bank account details and either rely on their husbands’ accounts or cannot access them. For the former, this can lead to husbands monitoring every expense and earnings, creating a problematic situation.
In the Philippines, BPO women workers face financial difficulties due to incredibly low salaries and familial responsibilities. As such, they often rely on various forms of credit. Credit cards help secure groceries and food and be used for emergency expenses. Online lending is another popular option, as it is easy to access and has minimal requirements. Some women juggle multiple loans from different online lending companies to manage payment deadlines and avoid high-interest rates. Others take out simultaneous loans from various companies to cover expenses adequately. Bank loans are less common, but some women opt for them to make significant investments like purchasing a home. This is often done jointly with their partners. Some companies also offer office loans, allowing workers to receive their salary in advance or take advantage of other lending options. Repayment for these loans is usually deducted from their salary, depending on their chosen payment programme. As a result, women often become stuck in a borrowing cycle, covering expenses by borrowing from different online lending companies.
They, however, often face obstacles when trying to obtain loans or mortgages from traditional financial institutions due to the unpredictable nature of their income, forcing them to turn to unregulated, non-formal financial institutions or to friends and family.
Organising platform women workers is necessary for improving industrial relations within the platform economy. However, this is challenging due to scattered, independent workers who compete for the same consumers and lack social protection. These issues primarily stem from algorithm management. As women workers find it challenging to join workers’ unions in precarious work conditions to demand better working conditions, they must find ways to escape debt at the individual level, which too often results in women digital labourers becoming trapped in a cycle of debt, making it challenging for them to break free from the “gali lubang tutup lubang” mechanism (digging a hole to cover another hole).
Digital platforms perpetuate unfair/unsafe working conditions and sexual exploitation of women, offer no access to justice and remedies.
Gender discrimination is a pervasive issue that women platform workers face, as massage workers in Thailand have explained to our research partners. They have been expected to provide sexual services by customers and sexually harassed by clients without any recourse from the digital platform. Customers who have harassed women workers are not banned from using the platform again, allowing for the possibility of further sexual harassment and violence to continue.
Others mentioned that some of their daily payments were deducted as an insurance premium. One woman who delivered for Company B shared that she only received a part of the lump sum payment she believed she was entitled to, due to an accident. This unfairness leads to dissatisfaction among delivery partners, ultimately impacting their work performance and overall job satisfaction.
Women in digital jobs are not covered by labour law, which results in further rights violations of workers. Women in digital jobs in Indonesia and Thailand lack health insurance, making them vulnerable to occupational diseases. Employers must provide social security benefits, including health insurance, to their employees. However, not all women workers receive these benefits either because they are not contracted and the partnership agreement is not covered by the strict definition of employer-employee relations under labour laws, or because employers do not enforce it even when these provisions are in place. In Indonesia, Mia has been employed with an Indonesian digital company for eight months but has not received BPJS Kesehatan, the government-mandated health insurance. This is against Law 24 of 2011 of the Social Security Agency, which mandates that employers register themselves and their workers as BPJS participants for specific social security programmes. In Sri Lanka, delivery partners are often classified as independent contractors. Unfortunately, this designation means they may not be entitled to the full range of employee benefits.
While one app in Sri Lanka does offer insurance coverage for a nominal daily fee of USD 0.047, it is not a guarantee for all registered partners. Additionally, some of the women workers and partners were uncertain about the specifics of the provided coverage. Finally, women workers must provide documentation of hospitalisation and treatment to take advantage of the insurance, which becomes burdensome for rideshare and delivery partners.
In addition to occupational safety and health difficulties, digital workers face uncertainties and risks. They may encounter a lack of time to explore different loan options when purchasing work tools and legal issues beyond their jurisdiction and as a result, they often resort to loans with high-interest rates that become challenging to repay. Digitalisation/the gig economy evades workers’ rights to Freedom of Association (FoA), Collective Bargaining (CB) and Right to Organise
Workers are often classified not as employees but as contractors or partners, which is a strategic move by companies and app owners. This classification significantly undermines fundamental workers’ rights, such as freedom of association, collective bargaining, and the right to organise or strike. The gig economy is failing to provide workers with the basic freedom of association and collective bargaining rights necessary for decent working conditions. Furthermore, employer discouragement makes it difficult for women workers to join unions and engage in collective action. In the Philippines, for instance, only a few BPO industry workers belong to a union, diminishing their bargaining power. To prevent worker exploitation, enforcing workers’ rights and establishing transparent employment relationships is crucial. As a result, we see a fragmented labour market where workers may have multiple employers (i.e., customers or clients). This shift places the responsibilities typically held by corporations onto individuals, affecting the protections and benefits that workers should receive as part of a corporate structure.
Conclusion and Recommendations:
Women, primarily burdened with unpaid care work, are financially challenged and seek income earning opportunities. Digitalisation has brought to life a ‘thriving’ gig economy that brags of providing work opportunities for women. True enough, it provides only work opportunities – mountains of work in fact – but with wages that are incredibly low and unsteady and working arrangements that pass on overhead costs unto workers, provide no social protection and benefits – trapping women in a never ending cycle of debt. Fundamentally, with employer-employee relations obscured, digitalisation has also disempowered women from associating, forming unions, and collectively bargaining for their fair share in the gig economy.
Recommendations:
- Stop privatising basic services to stop traditional gender roles reinforcement, male breadwinner bias and pregnancy bias
- Robust social and legal protection systems assist individuals and families, particularly women in the cross border, in preparing for and managing difficulties after leaving the formal labour market and moving into the digital platform economy.
- Employers must provide social security benefits, including health insurance, to employees at risk of work fatigue and health issues.
- Recognise digital/platform workers as workers and regulate companies accordingly. Also, ensure workers’ access to justice and the full exercise of their labour rights.
- It is useful for labour inspectors to understand how labour platforms operate, and transparency offers a window into the effects of digital platforms on workers’ working conditions and work environment.
- Governments urgently need to prioritise, ratify and implement the 11 fundamental labour rights, namely the Conventions on Employment Relationship Recommendation, 2006 (No. 198), Employment Policy Convention, 1964 (No. 122), Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144), Violence and Harassment Convention, 2019 (No. 190), Violence and Harassment Recommendation, 2019 (No. 206), Home Work Convention, 1996 (No. 177) and Social Protection Floors Recommendation, 2012 (No. 202).
Annex one: the Research Partners Profile
SINDIKASI, Indonesia
SINDIKASI is a union for media and creative industry workers in Indonesia. It was established on August 27, 2017, and officially recognised as a trade union on December 11, 2017. The union aims to fight for decent working conditions and welcomes people from diverse backgrounds. Its programs for 2021-2024 focus on decent work and gender equality. SINDIKASI conducts research and education, runs media campaigns, supports legal actions, and organises workers to join the union. It has a gender division on the executive board and an ethical code forbidding gender-based violence.
Website: www.sindikasi.org
BPO Industry Employees Network (BIEN), the Philippines
The BPO Industry Employees’ Network or BIEN is an independent network of employees, by the employees, and for the employees of the business process outsourcing (BPO) industry in the Philippines. It aims to promote BPO employees’ rights and welfare and provides platforms for workers in the BPO industry to come together, discuss issues and launch drives for the betterment of the employees and the industry.
Website: https://bienphilippines.wordpress.com
Just Economic and Labor Institute (JELI), Thailand
JELI empowers workers and communities from the working class to advance labour and economic justice. The organisation promotes solidarity, autonomy, and a strong movement within the working class by championing solidarity economy principles and advocating for worker-owned cooperatives. JELI is committed to promoting gender equality and women’s leadership within organised labour and worker organisations. The organisation focuses on empowering women’s leadership, raising awareness about gig workers’ health and safety, and addressing gender discrimination in platform-based gig work. JELI also advocates for policy reform to improve classification standards and enhance social protections for workers.
Website: https://justeconomylabor.org/
The Centre for Poverty Analysis (CEPA), Sri Lanka
The Centre for Poverty Analysis (CEPA) is an independent Sri Lankan Think Tank established in May of 2001 by Sri Lankan professionals working on poverty and development-related issues. CEPA carries out a range of client services, including research, consultancy, evaluation, impact monitoring, training and facilitation. Founded to institutionalise poverty impact monitoring and poverty analysis within the Sri Lankan institutional landscape, CEPA strives to fill a need for applied policy-relevant advice and has been providing practice-oriented services grounded in sound empirical research since then. Over the years, CEPA has responded to the needs of a constituency that included a variety of actors – state, non-state, international, national, civil society, community-based organisations, as well as the private sector – and has influenced policy making in the development field.
Website: https://www.cepa.lk/#
This multi-country research is part of APWLD’s Labour program. APWLD supported four research partners across four countries in the second half of 2023.
