{"id":544618,"date":"2022-03-13T03:49:27","date_gmt":"2022-03-13T03:49:27","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/whatsnext\/could-digital-labor-platforms-provide-better-working-conditions-for-egypts-informal-workers\/"},"modified":"2022-03-13T03:49:27","modified_gmt":"2022-03-13T03:49:27","slug":"could-digital-labor-platforms-provide-better-working-conditions-for-egypts-informal-workers","status":"publish","type":"whatsnext","link":"https:\/\/enterpriseam.com\/egypt\/whatsnext\/could-digital-labor-platforms-provide-better-working-conditions-for-egypts-informal-workers\/","title":{"rendered":"Could digital labor platforms provide better working conditions for Egypt\u2019s informal workers?"},"content":{"rendered":"

<\/a> Digital labor platforms offer chances for fair work in Egypt\u2019s informal sectors, a new <\/strong>report concludes<\/strong> \u2014 but there\u2019s still a long way to go.<\/strong> Digital labor platforms represent a \u201cunique and flexible\u201d way for Egypt\u2019s informal workers to earn a living \u2014 especially considering our highly informal economy \u2014 but they also have plenty of wrinkles still to be ironed out, concludes a recently-published study (pdf)<\/a> conducted by Oxford University-based, GIZ-commissioned project Fairwork<\/a> and AUC\u2019s Access to Knowledge for Development Center (A2K4D)<\/a>.<\/p>\n

What exactly do we mean by digital labor platforms?<\/strong> Digital labor platforms<\/a> include both web-based platforms and location-based apps that outsource and allocate work, usually in service industries like driving, cleaning or running errands, the ILO notes<\/a>. Today, these platforms form a core part of the gig economy (characterized by<\/a> short-term contract or freelance work). Altogether, Egypt\u2019s informal sector makes up an estimated 50% of GDP and 60% of the total employed population, with some 90% of SMEs belonging to the informal sector. And our digital transformation \u2014 with the internet penetration rate rising rapidly from an estimated 30% in 2010 to 57.3% as of January 2021<\/a> \u2014 has accelerated the growth of flexible, online \u2018gig\u2019 work, the report notes.<\/p>\n

Fairwork aims to evaluate whether these platforms offer fair working conditions by examining them against its own five principles of fair work:<\/strong> Pay, conditions, contracts, management, and representation. Platforms are scored out of ten, with each of the five principles allocated two points.<\/p>\n

The Fairwork-A2K4D report examines seven platforms operating in Egypt:<\/strong> These are home service provider FilKhedma<\/a>, courier delivery companies Mrsool<\/a> and Mongez<\/a>, tutoring provider Orcas<\/a>, ride-hailing platforms Uber<\/a> and Swvl<\/a>, and food delivery platform Talabat<\/a>. The platforms were selected because they\u2019re large and influential within their respective sectors, offering a snapshot of working conditions within Egypt\u2019s digital labor environment, the report tells us.<\/p>\n

Out of a possible ten points, FilKhedma scored the highest with five.<\/strong> Mrsool and Orcas followed with four, Swvl with three, and Mongez, Uber and Talabat with one.<\/p>\n

Three platforms were awarded at least a point for fair pay: <\/strong>FilKhedma, Orcas and Swvl all pay their workers minimum wage or above \u2014 which for 2021 was EGP 2k per month, or EGP 333 per week, according to the report. The scores factored in work related costs \u2014 like vehicle maintenance, equipment, and waiting times. For the other platforms surveyed, these extra costs mean employees don\u2019t actually take home the minimum wage. Only Orcas and Swvl pay a fair living wage or above \u2014 assessed as EGP 3.5k per month or EGP 583 per week in 2021.<\/p>\n

Five were given points for fair conditions, by clearly taking action to mitigate risks faced by their workers:<\/strong> Mongez, Mrsool, FilKhedma, Orcas, and Uber all exhibit awareness of the risks their workers face, and take some action to protect them, the report tells us. Mongez provides workers with PPE \u2014 though it\u2019s at a reduced cost, deducted from their salary every month. Mrsool offers an accident reimbursement system, so workers are compensated for any road accidents and recovery costs. FilKhedma provides a safety manual and offers safety training to workers. Orcas has a cancellation policy that safeguards worker incomes. And Uber has ins, and other policies in place to protect its drivers.<\/p>\n

But none provide workers with a safety net:<\/strong> Not having a safety net is one of the biggest risks faced by gig workers, and none of the platforms examined by the study in Egypt fully addresses this, the report notes. Mrsool is the only one to address it even partially: it once reassigned a worker unable to perform his job due to workplace injury to another department while the injury lasted.<\/p>\n

Three get a point for their contracts having clear terms and conditions: <\/strong>FilKhedma, Orcas, and Swvl have clear and accessible terms and conditions, as opposed to the other four platforms, which don\u2019t notify workers of proposed changes within a reasonable timeframe before they take effect.<\/p>\n

But all impose at least some unfair contract terms: <\/strong>Each of these platforms stipulate that they don\u2019t bear any contractual liability, which the report considers an unfair contract term.<\/p>\n

Three score management points, because they provide due process for decisions affecting workers: <\/strong>FilKhedma, Mrsool and Talabat can show they provide due process for decisions that impact workers, including an avenue for appeals over disciplinary action. The other platforms either have an inadequate appeals process or workers are in some way \u201cdisadvantaged for voicing concerns.\u201d<\/p>\n

But only one offers anything close to equity in the management process, by taking meaningful steps to be inclusive of women:<\/strong> Though Egypt\u2019s maintenance work is usually undertaken by men, FilKhedma have taken some steps to address gender bias by offering cleaning services, which tend to attract women workers, the report notes.<\/p>\n

Still, two now appear to be taking steps to be more generally inclusive:<\/strong> In an encouraging move, both FilKhedma and Orcas have recently implemented anti-discrimination policies, after collaboration with the Fairwork Egypt team, the report tells us. The aim of this is to work towards greater equality and inclusion and commit to non-discrimination on the basis of characteristics including race, religion, gender, marital status and disability.<\/p>\n

Finally, only one platform scores points for fair representation: <\/strong>Mrsool was \u201cthe only platform that provided evidence of meaningful collective worker voice mechanisms,\u201d the report says. Workers can organize and show unity through regular forums and meetings, and the platform has publicly declared that it supports the establishment of a couriers trade union, with which it would willingly enter into negotiations.<\/p>\n

In short: Digital labor platforms offer important avenues for Egyptian workers to pursue employment prospects. <\/strong>The platforms offer job prospects to cohorts of otherwise unemployed informal workers. And because many are early-stage, they could serve as blueprints for Egypt\u2019s wider business sector to engage in fairer work practices, notes the report, which suggests that making them fairer is eminently possible.<\/p>\n

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