Gig Economy Project – Open letter to EU Commission: Don’t ‘water down’ plans to regulate platform work

Ministers from Belgium, Spain, Portugal, Germany and Italy apply pressure onto EU Commission a week before the platform work directive legislation is to be announced

Yolanda Díaz, Spanish Labour Minister and signatory to open letter (picture by the Spanish Government)


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This series of articles concerning the Gig Economy in Europe is made possible thanks to the generous support of the Andrew Wainwright Reform Trust.



MINISTERS from five EU member-states have signed an open letter calling on the EU to avoid a “watered down solution” to regulating platform work and instead ensure a complete end to ‘false-self employment’. 

The letter, which was also signed by European trade union leaders and a raft of MEPs, comes just over a week before the EU Commission, which is a non-elected body, will announce its legislative proposal for a platform work directive on 8 December, which if it becomes law will be applicable to all member-states. 

In September, the European Parliament overwhelmingly backed a motion calling on the EU Commission to deliver a directive which guarantees labour rights for platform workers through a legal presumption of employment “in combination” with “reversing the burden of proof”, which means that it would be for platforms to go to court to prove a platform worker is not an employee, rather than visa-versa, as it is currently in most member-states.

That position was backed up by today’s [29 November] open letter, which argues that “a presumption of wage-earning which fixes the status of employee as a starting point” is necessary.

The letter adds: “The burden of proof should be shifted from the worker to the digital platform. Steps have been taken in this direction in various European states. This means that workers in platform companies are in principle employees unless the platforms can prove self-employment. This would change from the current situation of presumed self-employment where platform workers are deliberately misclassified as self-employed and have to prove that they are in fact in a salaried employment relationship.”

To emphasise the point, the letter warns against “a watered down solution” because it “would bring little or no change as the most vulnerable part of the employment relationship – the worker – would have to initiate the process.”

At the European Trade Union Institute’s conference on digital labour rights in October, Leïla Chaibi MEP, a leading campaigner on platform workers’ rights and a member of France Insoumise, said there was some suggestion that the Commission may pursue an approach which would “give the impression that something is being done without doing much, which is simply to change the burden of proof without the presumption of employment”.

Chaibi, who is also a signatory to today’s open letter, added that this would be “better than nothing” but it would mean that workers would still “have to go to court” to try to secure their labour rights.

The Gig Economy Project reported exclusively in September that the EU Commissioner for jobs and social rights, Nicolas Schmit, and his senior staff had collectively been lobbied on 10 separate occasions in 2021 by platform companies over its plans to regulate platform work. 

The Financial Times has today reported on a confidential draft of the EU Commission’s proposals which, according to the paper, remains under debate among EU Commission officials, and is getting “push back” from platform lobbyists in the final week before publication.

“The draft says that the criteria to classify workers as employees will be defined by member states, leading to concerns of a lack of certainty for platforms or platform workers,” the FT reports.

The five Ministers represented in the open letter are Pierre-Yves Dermagne, Deputy Prime Minister for the Economy and Labour in Belgium, Yolanda Díaz, Minister of Labour and Social Economy in Spain who introduced the “Riders’ Law”, Ana Mendes Godinho, Minister of Labour, Solidarity and Social Security in Portugal, who was very close to introducing employment status for platform workers earlier this month before a snap election was announced for January; Hubertus Heil, Federal Minister of Labour and Social Affairs in Germany, and Andrea Orlando, Labour and Social Policies Minister in Italy.

The full letter and list of signatories is published below.

——-

On December 8, the European Commission will present its long-awaited directive on improving the working conditions of digital platform workers.

Often, digital platform workers do not even earn the minimum wage, are not covered by collective agreements, are not entitled to any paid leave, are exposed to health and safety risks, are not entitled to sick leave or do not benefit from social security protection. Often working hours are long, and in some platforms a large gender pay gap and other types of discrimination are either tolerated or reinforced through algorithmic biases. These companies attract workers from vulnerable groups who are forced to accept low wages knowing that otherwise someone else will take their job.

Digital work platforms are only sustainable if they offer quality jobs and respect workers’ rights. Very few platforms only work with truly independent workers. It is therefore necessary to define rules to ensure that digital work platforms cannot exploit the loopholes in the legislation allowing them to reap significant profits by employing bogus self-employed in order to avoid sectoral obligations in terms of employment. fair remuneration, working conditions and social security. This practice is not only unfair to workers but also to a large majority of companies, which follow the rules, and to society as a whole.

Meal delivery, taxi services and housework are just the tip of the iceberg: digital work platforms are growing in the commerce, engineering, nursing, construction and service industries. We are also witnessing a so-called “platformisation” in other sectors where practices such as job fragmentation of jobs and extreme flexibility are gaining ground. This is one more reason for the need for European legislation. The European Parliament, the Member States, in Europe, an overwhelming majority of court decisions have demonstrated very clearly that platform companies are employers and that their workers should enjoy the same rights as employees. The announced directive must conform to this approach. The starting point for legal and policy measures should be that every digital workplace is or can become an employer.

The European Commission must establish a presumption of wage-earning which fixes the status of employee as a starting point. The burden of proof should be shifted from the worker to the digital platform. Steps have been taken in this direction in various European states. This means that workers in platform companies are in principle employees unless the platforms can prove self-employment. This would change from the current situation of presumed self-employment where platform workers are deliberately misclassified as self-employed and have to prove that they are in fact in a salaried employment relationship.

A caveat is in order to avoid potential misunderstandings: A rebuttable presumption of wage employment does not mean that all workers will be considered employees. The business model of platform companies operating with true self-employed workers will not be affected as long as they can prove that there is no dependency relationship.

Any watered down solution would bring little or no change as the most vulnerable part of the employment relationship – the worker – would have to initiate the process.

Algorithms are used as management tools by digital work platforms which has a significant impact on rights and working conditions. The algorithms that set the price of services and decide the division of labor function like black boxes for workers. The constant control and importance of ratings generates extreme pressure and stress.

The central role of the algorithm is what distinguishes platform work from other types of work. If the European Commission is serious about improving the situation of platform workers, the regulation of algorithmic management should be a key part of its proposal. Digital platforms should be transparent about how their algorithm sets prices and allocates labor, including what factors are taken into account. Because it sets working conditions, workers and their unions should have a say in how the algorithm works. The latter should also never be able to dismiss workers.

To address the lack of information on how digital work platforms operate in the EU, they should be subject to the obligation to register with a public authority and ensure transparency key data of their activities.

Digital work platforms operate transnationally and therefore a European solution is needed. This would avoid fragmented legislation between Member States which would only aggravate the race to the bottom on rights. The signatories of this letter call on the European Commission to ensure that digital platforms are subject to the same rules as any other “offline” business operating in a cross-border framework, whether in labour law, social legislation or fiscal compliance.

In order for workers to have their fair share, and for a sustainable economic model to develop across Europe, through or without an “app”, high standards must be defined for digital platforms.

* Signatories: Pierre-Yves Dermagne (Deputy Prime Minister for the Economy and Labor, Belgium), Yolanda Díaz (Minister of Labor and Social Economy, Spain), Ana Mendes Godinho (Minister of Labor, Solidarity and Social Security, Portugal), Hubertus Heil (Federal Minister of Labor and Social Affairs, Germany), Andrea Orlando (Labor and Social Policies Minister, Italy), Luca Visentini (General Secretary of the European Trade Union Confederation, Italy), Ludovic Voet (Confederal Secretary of the European Trade Union Confederation, Belgium), MEP Iratxe García Pérez (S&D, Partido Socialista Obrero Español, Spain), MEP Sergei Stanishev (President of the Party of European Socialists, Socialist Party, Bulgaria), MEP Ska Keller (co-President of the Group of the Greens / European Free Alliance, Die Grünen, Germany),MEP Philippe Lamberts (co-President of the Group of the Greens / European Free Alliance, Ecolo, Belgium), MEP Manon Aubry (co-President of the The Left, La France Insoumise, France), MEP Martin Schirdewan (co-President of the GUE group, Die Linke, Germany), MEP Agnes Jongerius (S&D, Partij van de Arbeid, Netherlands), MEP Dennis Radtke (EPP, CDU, Germany), MEP Kira Marie Peter-Hansen (Greens / European Free Alliance, Socialistisk Folkeparti , Danmark), MEP Nikolaj Villumsen (The Left, Enhedslisten, Danmark), MEP Elisabetta Gualmini (S&D, Partido Democratico, Italy), MEP Kim Van Sparrentak (Greens / European Free Alliance, GroenLinks, Netherlands), MEP Leila Chaibi (The Left) , La France Insoumise, France)MEP Manon Aubry (co-President of the The Left, La France Insoumise, France), MEP Martin Schirdewan (co-President of the GUE group, Die Linke, Germany), MEP Agnes Jongerius (S&D, Partij van de Arbeid, Netherlands) , MEP Dennis Radtke (EPP, CDU, Germany), MEP Kira Marie Peter-Hansen (Greens / European Free Alliance, Socialistisk Folkeparti, Danmark), MEP Nikolaj Villumsen (The Left, Enhedslisten, Danmark), MEP Elisabetta Gualmini (S&D, Partido Democratico, Italy), MEP Kim Van Sparrentak (Greens / European Free Alliance, GroenLinks, Netherlands), MEP Leila Chaibi (The Left, La France Insoumise, France)MEP Manon Aubry (co-President of the The Left, La France Insoumise, France), MEP Martin Schirdewan (co-President of the GUE group, Die Linke, Germany), MEP Agnes Jongerius (S&D, Partij van de Arbeid, Netherlands) , MEP Dennis Radtke (EPP, CDU, Germany), MEP Kira Marie Peter-Hansen (Greens / European Free Alliance, Socialistisk Folkeparti, Danmark), MEP Nikolaj Villumsen (The Left, Enhedslisten, Danmark), MEP Elisabetta Gualmini (S&D, Partido Democratico, Italy), MEP Kim Van Sparrentak (Greens / European Free Alliance, GroenLinks, Netherlands), MEP Leila Chaibi (The Left, La France Insoumise, France), MEP Dennis Radtke (EPP, CDU, Germany), MEP Kira Marie Peter-Hansen (Greens / European Free Alliance, Socialistisk Folkeparti, Danmark), MEP Nikolaj Villumsen (The Left, Enhedslisten, Danmark), MEP Elisabetta Gualmini (S&D, Partido Democratico , Italy), MEP Kim Van Sparrentak (Greens / European Free Alliance, GroenLinks, Netherlands), MEP Leila Chaibi (The Left, La France Insoumise, France), MEP Dennis Radtke (EPP, CDU, Germany), MEP Kira Marie Peter-Hansen (Greens / European Free Alliance, Socialistisk Folkeparti, Danmark), MEP Nikolaj Villumsen (The Left, Enhedslisten, Danmark), MEP Elisabetta Gualmini (S&D, Partido Democratico , Italy), MEP Kim Van Sparrentak (Greens / European Free Alliance, GroenLinks, Netherlands), MEP Leila Chaibi (The Left, La France Insoumise, France)

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