We are hearing more about the ‘gig economy’ as it proliferates around the world. In advance of this Saturday’s federal election, for employers, it’s another issue to consider. Although it could be mistaken that the gig economy refers to live music, it actually refers to workers who are not full-time, not part-time, not casual, but using digital-based platforms for flexible, temporary or freelance work.
Examples of the gig economy include Uber, Freelancer, Upwork, and Airtasker. There are in fact over 100 platforms operating in Australia, and growing.
Political leaders around the nation have been discussing this as part of their workplace relations campaigns. Although it has not been a central platform for either major party, we need some fact-checking on the record.
Firstly, the scale of the gig economy. In August 2020, the HILDA social survey stated that those using digital-based platforms for work accounted for just under 100,000 Australians. This figure has been estimated to be as high as 250,000, but is still a relatively small portion of Australian workers when casual employees in other industries currently account for 2.6 million workers.
Secondly, calling gig economy workers ‘small businesses’ is not correct. Gig economy workers do not neatly fall into the definition of an independent contractor or an employee. Recent decisions in courts around the globe have shown the divergence of opinion relating to that. Australia’s Fair Work Commission concluded that they are not employees and we use the independent contractor model, whereas the UK Supreme Court declared them employees. A Dutch judge ruled that Uber drivers should be classified as employees and entitled to the benefits of that status. The European Commission is wading into the debate, with potential precedent-setting across the Continent. Going the other way in Florida, legislation has confirmed that Uber drivers are independent contractors.
Meanwhile, our peak body in Canberra, the Australian Chamber of Commerce and Industry, quite rightly said we are currently experiencing the most significant labour shortage in Australia in nearly 50 years. Many of the South Australian Business Chamber’s members echo that same sentiment here in South Australia.
With the gig economy only likely to grow over coming years, employers will be closely watching how the industrial relations environment plays out here in Australia. As we come out of the global pandemic and into more uncertain times, we must support business owners and employers in keeping their doors open and growing into the future. After all, business owners are the major employer in South Australia. Our nation has plenty of work, and in this tough labour market with further challenges ahead, the flexibility of the gig economy is one way to get the job done.
With the federal election this Saturday, the South Australian Business Chamber encourages its members and those interested in a more prosperous South Australia to carefully consider the election policies of the major parties. We believe that South Australia has significant economic potential as our state emerges from the turbulence of the global pandemic and we want to see the next Federal Government supportive of those opportunities.
