1 00:00:00,390 --> 00:00:06,209 So the gig economy is one of these the term the gig economy is one of these two are not entirely 2 00:00:06,210 --> 00:00:11,940 clear where the term came from and it's not entirely clear exactly what it's supposed to refer to. 3 00:00:11,940 --> 00:00:21,150 But what I'm going to talk about this evening is primarily these kinds of things, while sometimes called the digital platforms. 4 00:00:21,750 --> 00:00:33,300 So two of the most familiar ones are uncontroversial ones are Uber and Deliveroo, which you probably heard of Top TaskRabbit. 5 00:00:33,330 --> 00:00:40,830 I'm not entirely sure if TaskRabbit does business in the UK. No, it's all service like Airtasker, but the logo's a bit more interesting. 6 00:00:40,830 --> 00:00:43,649 So matter comment on a slide before kind of. 7 00:00:43,650 --> 00:00:50,220 I was curious, have any of you or do any of you were working in the gig economy for any of these platforms? 8 00:00:50,700 --> 00:00:56,339 I know Uber doesn't operate in Oxford. No, but I guess everyone who does go out on the street do their thing. 9 00:00:56,340 --> 00:01:04,680 Right. Okay. So I'm talking about we're going to talk mainly about the kind of platforms that have recently evolved, 10 00:01:04,680 --> 00:01:11,340 given advances in communications technology and which is a subject of some debate out in the in the real world. 11 00:01:11,970 --> 00:01:16,170 But it can be helpful to solving some of Wall Street's generalisations and definitions. 12 00:01:16,170 --> 00:01:22,780 So what I want to say roughly, but I think what I saw on the right track is that good gig work. 13 00:01:22,800 --> 00:01:25,050 When we talk about gig what, what, what we're all talking about, 14 00:01:25,050 --> 00:01:31,750 what we should be talking about is any kind of labour that that sort of soul to order, right? 15 00:01:31,800 --> 00:01:37,379 A kind of rolling basis whereby gig what gig workers are workers who are in the position 16 00:01:37,380 --> 00:01:41,640 of supplying labour according to kind of discrete instances of consumer demand. 17 00:01:41,850 --> 00:01:42,150 Okay. 18 00:01:42,360 --> 00:01:51,809 So in other words, they work when some specific consumer wants to consume the output of that, they okay on that and they just do it by rolling basis. 19 00:01:51,810 --> 00:01:57,810 They start and stop according to when the demand comes up and what the digital platforms do. 20 00:01:58,320 --> 00:02:00,620 But by and large is they just transmit live, 21 00:02:00,630 --> 00:02:07,270 enable the transmission of information in ways that makes this sort of thing happen a lot more readily than it used to. 22 00:02:07,770 --> 00:02:15,840 Okay. So over Deliveroo that they send workers information about demand, but they're in a position to respond to those and where to go. 23 00:02:16,470 --> 00:02:23,490 And they send information to consumers and to workers about about the quality, about the experience that transact is how to impart context. 24 00:02:23,790 --> 00:02:31,799 So Uber drivers and consumers, both in the kind of writing the platforms, enable this to move around. 25 00:02:31,800 --> 00:02:33,750 And that's a large part of their appeal. Right. 26 00:02:35,460 --> 00:02:42,660 But because that's really all because that's mainly what digital platforms are, they're not really about that. 27 00:02:42,690 --> 00:02:47,550 They perform a similar kind of role that has been performed for a long time, but by just older kinds of platforms. 28 00:02:47,770 --> 00:02:47,920 Right. 29 00:02:47,940 --> 00:02:58,220 So and insofar as any information around that, just a success of technologies, older, slower ways of doing that, like newspapers and the phone book. 30 00:02:58,230 --> 00:03:04,710 Right. Big thing that you start to shut off on your doorstep that that's a platform project for these purposes. 31 00:03:05,810 --> 00:03:13,980 I think another example. So really the digital platforms are just the kind of next level in the evolution of communications technology. 32 00:03:15,000 --> 00:03:17,040 So that's one thing. And what's really new here, 33 00:03:18,540 --> 00:03:24,479 the same with the economy of the thing with the digital platforms is we often people often talk about these things as if there's 34 00:03:24,480 --> 00:03:32,880 some kind of revolution in labour markets with respect to the kinds of services I think that they allow people to sell. 35 00:03:34,380 --> 00:03:39,030 This is true to some extent. So things like Uber have made they certainly make consumers better off. 36 00:03:39,780 --> 00:03:44,700 This sort of depends on where you live. I live in Melbourne. Taxi drivers are pretty awful. 37 00:03:47,130 --> 00:03:54,150 I mean I mean, they didn't really they are the new clients of Darwin either didn't know or claim not to know where you were trying to go. 38 00:03:55,190 --> 00:04:02,429 I'm not trying to charge you and I think there's a real although I talk much about this as a go back to the consumer and all of these platforms, 39 00:04:02,430 --> 00:04:06,540 which of course explains partly why they've become so successful. 40 00:04:06,960 --> 00:04:10,110 So that's definitely a new phenomenon, is a revolution now consumer side. 41 00:04:11,220 --> 00:04:19,600 But my feeling is that of the language about this being a new a new wave and a revolution is compared to the revolutions that happened in the past, 42 00:04:19,600 --> 00:04:23,160 like like the invention of the steam engine or the invention of electricity. 43 00:04:23,910 --> 00:04:28,660 It's, you know, it's just not quite left in the narrative. 44 00:04:28,660 --> 00:04:30,030 The revolution is, after all, 45 00:04:30,030 --> 00:04:35,609 being pushed partly by the owners of the platforms who really want to puff them up and to some extent by journalists who are in 46 00:04:35,610 --> 00:04:41,550 the unfortunate position of having to report on something that's really new the whole time that's quite hard for journalists. 47 00:04:41,940 --> 00:04:49,830 And journalists got to have a Brexit that's going to find some way, as I hear something new every day, and that's actually a lot of data. 48 00:04:51,870 --> 00:04:55,200 So we want to be a little bit sceptical about that, 49 00:04:55,800 --> 00:04:59,850 but nevertheless have these these platforms that there was a thing they were saying there are a lot control. 50 00:04:59,920 --> 00:05:03,600 Mercy moral controversy and asked. That's why we're here. 51 00:05:03,610 --> 00:05:08,640 Right. So coming up is what's going to happen. 52 00:05:11,220 --> 00:05:18,240 So I want to go through this to two somewhat distinct mobile concerns about gig work or 53 00:05:18,240 --> 00:05:24,870 about digital platforms that are floating around and that people try and articulate. 54 00:05:25,070 --> 00:05:31,620 I don't want to talk about both of these, but the first one I'm going to talk about and kind of set aside quite quickly and then try to fill 55 00:05:31,620 --> 00:05:37,410 the time talking about the second one is to keep this to a logical focus on the gig economy. 56 00:05:37,890 --> 00:05:42,540 The first one I'm going to set aside, the second one I'm going to try and expand one. 57 00:05:42,870 --> 00:05:50,740 And that's going to lead me to eventually offer some conclusions or suggestions perhaps about what the mobile problem actually is. 58 00:05:50,770 --> 00:05:54,660 I'm saying there is a moral problem and I try to get at it in this way. 59 00:05:55,860 --> 00:06:01,409 Uh, so that's just a heads up. Okay, so start with the first complaint. 60 00:06:01,410 --> 00:06:11,670 So it's very, very popular. People looked like it affected work that they were deliberately and I think it's exploitation. 61 00:06:11,820 --> 00:06:19,140 And what triggers this typically is what this involves when when it's articulated 62 00:06:19,340 --> 00:06:23,010 is some kind of view about people not getting paid what they're entitled to. 63 00:06:23,900 --> 00:06:25,040 For the kind of work I put in. 64 00:06:26,340 --> 00:06:33,480 Some people think Uber is exploitative because while the owners have over cash in a very extreme successful company is worth an enormous amount, 65 00:06:34,470 --> 00:06:41,130 the individual drivers don't typically don't earn very much and possibly don't earn as much. 66 00:06:41,220 --> 00:06:46,680 Many people work as possibly don't earn as much as they used to do doing some of the work before the platforms evolved. 67 00:06:47,160 --> 00:06:51,100 And so this isn't really a point of exploitation. It's worth being aware. 68 00:06:51,130 --> 00:06:59,160 There is a real mechanism here about how platforms might push out wages to two factors here that are of most, not all that well. 69 00:06:59,550 --> 00:07:04,890 What the platforms do is they mean that workers have got to approach consumers en masse. 70 00:07:04,980 --> 00:07:11,040 Right. If you didn't have a digital platform and you were trying to get a ride somewhere, 71 00:07:11,100 --> 00:07:16,770 you wouldn't have a whole load of drivers kind of single tirelessly offering their services to you, and that would possibly be the process. 72 00:07:17,730 --> 00:07:19,350 Okay. So that's one one mechanism. 73 00:07:19,800 --> 00:07:26,880 And also digital platforms, the barriers to entry for workers wanting to sell their these platforms are pretty minimal. 74 00:07:27,660 --> 00:07:35,040 They're pretty minimal compared to some of the barriers that were associated with that kind of labour before the platform was around. 75 00:07:36,270 --> 00:07:41,309 Most familiar here is perhaps that the licensing requirements for things like taxi drivers become a taxi driver. 76 00:07:41,310 --> 00:07:45,840 In the old days you have got to pay good money and pass passports an time as well. 77 00:07:46,950 --> 00:07:49,450 To get your license. And Uber drivers don't really have to do this. 78 00:07:49,610 --> 00:07:55,890 You have to have a driver's license, but they don't have a license on top of that software to sell their life on the platform. 79 00:07:56,310 --> 00:08:00,960 Okay. So there's just two mechanisms that increase the number of workers. 80 00:08:01,300 --> 00:08:09,530 The second one is about accounts. A larger body of work is competing with each other, and the competition is in some ways more direct, 81 00:08:09,530 --> 00:08:12,320 more intense than it might be without the platform. 82 00:08:13,040 --> 00:08:21,019 But in terms of the moral substance of this, the tricky thing of exploitation, so a feeling that some of that exploitation is going on is very, 83 00:08:21,020 --> 00:08:27,560 very intuitive, but hard to sort of get to the bottom of what makes such claims true, if they often. 84 00:08:27,860 --> 00:08:37,670 So generally speaking is there's two kinds of factors that need to be present in order for the feeling that someone's being exploited to take hold. 85 00:08:38,360 --> 00:08:47,440 These are very roughly first of all, the idea that someone is being offered a wage that's just is just too low is just too low for low level to be. 86 00:08:48,320 --> 00:08:56,160 And secondly, people are accepting this offer only because they've got a really bad set of options about alternative options. 87 00:08:56,180 --> 00:09:02,600 Now, both of these conditions are important. I think the reason you need condition two is that. 88 00:09:02,930 --> 00:09:07,729 So I think eventually I'll take over a fair bit in Melbourne and I'll to try and I'll make a 89 00:09:07,730 --> 00:09:11,120 habit of trying to start a conversation with the driver and finding out what they think of it. 90 00:09:11,720 --> 00:09:15,290 And by and large, I think the two cars are driver watchers. 91 00:09:15,770 --> 00:09:24,410 There's there's the migrant workers. Right. Typically who would have been taxi drivers in a previous before the revolution. 92 00:09:26,050 --> 00:09:29,060 And they're they're doing it pretty tough that they don't get enough money. 93 00:09:30,740 --> 00:09:33,229 And they often complain and complain over this. 94 00:09:33,230 --> 00:09:38,040 Congress wants to make it clear that we're not going to give them one stop for saying this, but maybe it's not so much a little bit. 95 00:09:38,510 --> 00:09:47,630 But the other Karnataka is the sort of tends to be middle aged, middle class white guy who just kind of likes driving. 96 00:09:50,210 --> 00:09:56,600 I thought I was like his mom was like, oh, I just love this family car and I just love going around and shooting the breeze. 97 00:09:56,600 --> 00:10:03,710 And it's very unintuitive. That person is getting exploited even though they are getting paid the same as the market work. 98 00:10:03,900 --> 00:10:05,570 Okay, so you need condition two for that. 99 00:10:06,170 --> 00:10:12,590 But it's also true that that the wage level still matters because it's easy to think of cases where someone has a very, 100 00:10:12,590 --> 00:10:17,569 very bad option set apart from the offer they're in fact, accepted. 101 00:10:17,570 --> 00:10:26,510 So and the standard case here is something like imagine a on a star Brazilian soccer player from the favela who was looking down the 102 00:10:26,510 --> 00:10:33,500 barrel of an extremely impoverished life until some scout from Barcelona or whoever he saw them play offered him this big wage. 103 00:10:34,400 --> 00:10:38,930 Again, not really that person to exploit it because the wages, even though not for percent, was really bad. 104 00:10:39,260 --> 00:10:44,450 So in both of these things. And what's hot here is is coming up with song. 105 00:10:45,140 --> 00:10:52,670 I mean, this sort of easy sort of easy to identify cases where two sides find the hard part is giving the substance that really explains this. 106 00:10:52,980 --> 00:10:57,750 So some of political philosophers I've been trying for quite a long time, over 200 years. 107 00:10:57,750 --> 00:11:01,310 It's really very long time philosophy, but it's still quite a long time. 108 00:11:02,720 --> 00:11:11,090 And there is a really good thing you could say that has gotten a lot of flak arms going agree about this because philosophers tend not to agree but. 109 00:11:13,380 --> 00:11:17,700 My assessment. So there wasn't really a good theory of exploitation, of very powerful intuitions about exploitation. 110 00:11:17,700 --> 00:11:25,600 But the problem is no one's ever really been able to come up with a good account of what a fair price for labour is so that you can calculate, 111 00:11:25,620 --> 00:11:34,230 you can say why some offer for wages to low to low relative to some baseline of a fair wage, that's not really being done. 112 00:11:34,950 --> 00:11:43,300 Okay. If you can't set a reference point to calculate the degree to which exploitation has occurred, you haven't really got a theory of exploitation. 113 00:11:44,130 --> 00:11:47,730 There's a strong temptation to fall back on the impression that this is just 114 00:11:47,730 --> 00:11:50,460 exploitative when you look at what people are earning for certain kinds of work. 115 00:11:50,790 --> 00:11:58,169 But I think when when we're dealing with morally problematic market scenarios, 116 00:11:58,170 --> 00:12:02,999 we should at least try and find other means of diagnosing what the injustices rather than just rely on exploitation. 117 00:12:03,000 --> 00:12:09,329 So I don't want to be too dismissive about this, but I'm going to set this approach aside. 118 00:12:09,330 --> 00:12:11,970 Perhaps we can talk about it in the Q&A. All right. 119 00:12:12,420 --> 00:12:21,350 So the complaint I'm going to go for is what we might call what gets called misclassification of work as well. 120 00:12:22,560 --> 00:12:25,710 So the idea here and again, this is a complaint made by good workers, 121 00:12:26,040 --> 00:12:34,079 which is I know these platforms I over deliver and so on and the platforms I've managed to get away with declaring that workers as freelancers, 122 00:12:34,080 --> 00:12:37,830 self-employed or parties as opposed to employees. 123 00:12:38,770 --> 00:12:48,059 And I'm complaining that this is just wrong. This is just not what's going on in in the economy for at least on a wide range of platforms right now. 124 00:12:48,060 --> 00:12:52,800 Paul in the complaint is motivated by some concern about the wages being unjustly low. 125 00:12:53,220 --> 00:12:58,590 Why? Because if you were an employee rather than a freelancer, you'd have certain guarantees. 126 00:12:58,590 --> 00:13:06,420 And in most jurisdictions about minimum wage and certain other benefits that might make the overall package look fair. 127 00:13:06,750 --> 00:13:09,090 All right. But that's not all that's going on. 128 00:13:09,510 --> 00:13:18,840 So the suggestion of all the so I have is that if we can get to the bottom or nearer to the bottom of all of this complaint, 129 00:13:19,800 --> 00:13:24,420 we might have quite an interesting and interesting way of approaching the gig economy. 130 00:13:24,630 --> 00:13:34,170 Okay. So what I want to ask you about asking for an answer in real time is what's all this about this distinction between freelancers and employees? 131 00:13:35,310 --> 00:13:39,030 What is that? What we'll see. Also, distinction fall. Why do we have it? 132 00:13:39,120 --> 00:13:42,029 What do we want from it? What's its moral purpose? 133 00:13:42,030 --> 00:13:49,440 If they want to have a moral purpose, or it might make sense only when you cash out poorly in moral terms. 134 00:13:49,770 --> 00:13:57,030 Okay. So that's that's the that's the harsh that's the suggestion I'm going to try and make good on for carrying on. 135 00:13:57,030 --> 00:14:00,899 I want to go back to this thing about how that this is not as revolutionary as it sometimes sounds. 136 00:14:00,900 --> 00:14:03,690 So gig work meaning the abstract definition. 137 00:14:04,080 --> 00:14:09,389 So remember, the abstract definition is this idea of rolling rolling agreements to perform something like that, 138 00:14:09,390 --> 00:14:16,920 the right to force consumer this is probably the oldest commonwealth in there is which is probably older than employment by firms. 139 00:14:17,250 --> 00:14:21,330 Okay. And it's certainly very familiar kind of think of the phonebook if you if you're old enough. 140 00:14:24,140 --> 00:14:27,950 You've got your electricians, your plumbers, freelance workers. 141 00:14:28,050 --> 00:14:33,720 Right. Everyone agrees. People sell their labour according to their individual instances of consumer demand, often, 142 00:14:33,740 --> 00:14:39,170 often quite short term, and use some kind of platform, maybe an online platform nowadays. 143 00:14:39,170 --> 00:14:44,840 But in the old days, the phone book and passing leaflets through letterboxes or whatever. 144 00:14:45,470 --> 00:14:49,010 Now I think these kinds of cases, these old fashioned paperwork cases, 145 00:14:49,010 --> 00:14:56,780 are actually quite instructive when you're trying to think about the morality of the digital platform cases, because there's various informal, 146 00:14:57,200 --> 00:15:02,809 instructive comparisons we can make when thinking about the conditions that these kinds of workers work as 147 00:15:02,810 --> 00:15:10,940 freelancers and the kind of conditions that typically apply to people selling their labour through the platforms. 148 00:15:11,450 --> 00:15:17,960 So I think we can actually learn a lot from thinking about the the way in which the gig economy is not so much revolutions. 149 00:15:18,200 --> 00:15:21,339 Yeah. Okay. 150 00:15:21,340 --> 00:15:24,810 So let's let's get started on that. Right. 151 00:15:24,820 --> 00:15:28,360 So you got two cars of working in the market, in the market economy. 152 00:15:29,050 --> 00:15:32,410 There's two ways in which you can sell your work, your labour. 153 00:15:32,920 --> 00:15:37,990 You can work for a firm where my firm, we just mean broadly speaking, 154 00:15:38,200 --> 00:15:44,729 any kind of entity that will participate in an employment contract wants to go for a small business. 155 00:15:44,730 --> 00:15:52,450 It can be a charity university. Anyone but a firm is an entity that employs people based on a contract. 156 00:15:53,230 --> 00:15:56,709 Right. And what that contract determines, among other things, 157 00:15:56,710 --> 00:16:03,370 across all sectors is going to be something about how much work you do and something about how much you're going to get paid. 158 00:16:03,880 --> 00:16:13,000 And then it's up to the employment law to add more stuff. Or you can work for your stuff while you're not employed by the firm and where. 159 00:16:15,260 --> 00:16:21,160 The amount of work you do and the amount of money you make is more at the mercy of abstract expression or more determined by that. 160 00:16:21,170 --> 00:16:25,320 The. Okay. Mobile contract. All right. 161 00:16:25,470 --> 00:16:31,050 So this is, again, just a rough outline, but that's the that's really how we can begin to distinguish these two categories of worker. 162 00:16:31,560 --> 00:16:36,690 Okay. The question is, which one? Under what conditions should gig workers be in category to all category one? 163 00:16:38,480 --> 00:16:44,190 I think it's it's really quite a philosophical question. What why we have this distinct. 164 00:16:44,190 --> 00:16:48,660 Well, why do we want such a distinction? And we shouldn't just take it for granted. 165 00:16:48,690 --> 00:16:52,590 I mean, we shouldn't just say, well, such a distinction exists. What does the law say about it? 166 00:16:52,860 --> 00:16:56,020 And we'll take it from there. There's a real question about what's up? 167 00:16:56,070 --> 00:17:08,150 What should such a distinction look like? Okay. So first out of the proposal, I want to make the VFW your second stab. 168 00:17:10,010 --> 00:17:14,750 So what we're trying to do with this distinction between freelance workers and employees is we're trying to, 169 00:17:15,620 --> 00:17:23,450 I think, institutionalise a choice for workers who really want to sell their lives. 170 00:17:23,900 --> 00:17:28,460 We want to give them a choice. Do you want to sell it through the market or take on a certain set of benefits and burdens? 171 00:17:28,790 --> 00:17:35,150 Or do you want to go through employment working for the man and get a different set of conditions? 172 00:17:35,720 --> 00:17:42,630 Yeah. And. And so if you are a freelancer, if you take a freelance option, roughly what you do, 173 00:17:43,050 --> 00:17:49,620 what you're doing is you're preserving certain kinds of freedoms about how you work when you work. 174 00:17:50,850 --> 00:17:58,020 What kind of work to do. But accepting more risk about how much and what guarantees you're going to give up. 175 00:17:58,500 --> 00:18:03,690 Conversely, like if you work for a firm you're buying into, you're signing a contract, 176 00:18:03,690 --> 00:18:08,820 it's going to give you a set of guarantees within minutes of of a payday. 177 00:18:09,660 --> 00:18:13,110 But you're giving up some of the autonomy and freedoms of the firm also around. 178 00:18:15,900 --> 00:18:19,170 Terrific animation. That's not all that Mr. That's not. 179 00:18:19,380 --> 00:18:23,140 I'm not saying that this is all there is to that distinction. 180 00:18:23,160 --> 00:18:30,799 But this is the bit that matters. Okay. So what I want to do is I also want to go through some of these differences between the kind 181 00:18:30,800 --> 00:18:36,410 of package of benefits and burdens that freelancers get and the package that employees get. 182 00:18:36,860 --> 00:18:42,170 I just use these comparisons to say something about where we should place delivery riders, uber drivers. 183 00:18:42,360 --> 00:18:45,470 I'm sorry. Yeah. So, uh. 184 00:18:46,540 --> 00:18:52,360 Well, sir, first of all, these are in no particular order, although it's going to be four days and maybe the fourth one is the most important. 185 00:18:53,050 --> 00:18:59,120 But the other three have got a lot of power, maybe. So if you are a freelancer, you have one, right? 186 00:18:59,130 --> 00:19:02,330 You have is you have the entitlement. Entitlement, right. 187 00:19:02,570 --> 00:19:08,660 Same thing tonight. You can set the price of your labour and negotiate with customers accordingly. 188 00:19:09,800 --> 00:19:13,610 But if you are an Uber driver or delivery rider, you just cannot do this. 189 00:19:14,270 --> 00:19:18,600 Okay. You could call if you want Uber driver. You can. You you charge. 190 00:19:18,950 --> 00:19:23,120 What? Well, we want to say you charge what the market wants to offer. 191 00:19:23,180 --> 00:19:28,070 I'll come back to that. But you don't choose that the app chooses to uses the app. 192 00:19:29,570 --> 00:19:34,940 It depends on the app. What would you charge? Yeah. And what's more, there's a bit more consumer. 193 00:19:35,060 --> 00:19:42,170 I mean, surely the driver is talking about something that varies from locality to locality, but focus on the Uber driver in the States once week. 194 00:19:42,170 --> 00:19:45,950 And he told me, he said when I got them off for a ride, I don't know where I was going. 195 00:19:46,130 --> 00:19:51,320 I just want the distance. I just get a 500 kilometre ride, hop for my ride. 196 00:19:51,660 --> 00:19:55,610 That's where you're not an access point based on that alone. 197 00:19:56,240 --> 00:20:01,160 Okay. And but there's nothing. The thing about the app necessitates concealing that information. 198 00:20:01,680 --> 00:20:05,239 Yeah. Because they choose to have that the people like. Yeah. And want, 199 00:20:05,240 --> 00:20:13,130 I want us to compare this kind of practice what was talking about to a cut and dry freelancer and old fashioned gig work like apply one of attrition. 200 00:20:13,580 --> 00:20:15,320 I mean this was wouldn't fly at all. Right. 201 00:20:15,650 --> 00:20:22,480 If I'm a plumber and I say if I'm a plumber in the 1980s and I go round to the local paper, I'd satellite to advertise my plumbing service. 202 00:20:22,520 --> 00:20:27,559 And the paper says, Sure, but you have to charge what we say. You're going to say, I don't work for you. 203 00:20:27,560 --> 00:20:37,490 I work for me. Right. Then there's no nothing attractive or plausible about the idea that an old fashioned 204 00:20:37,490 --> 00:20:42,560 freelance work and must charge some things right based on what some platform tells them? 205 00:20:43,940 --> 00:20:49,909 No. Nor is there anything in the idea that somehow the phone company would facilitate a consumer 206 00:20:49,910 --> 00:20:55,130 contacting a plumber but somehow conceal what the job was until the plumber got to the location. 207 00:20:55,160 --> 00:20:58,280 Right. But the job is five kilometres away. 208 00:20:58,970 --> 00:21:03,350 You get to know whether it's the washing machine or the toilet or whatever. 209 00:21:04,160 --> 00:21:08,960 So that's that's often the first, right? That tends to accrue to freelancers, but not to employees. 210 00:21:09,260 --> 00:21:14,960 Is this right to decide how much to negotiate freely with the customer about how much is going to change hands? 211 00:21:17,510 --> 00:21:22,610 A little side note here. First with two sidebars which we have to point from position. 212 00:21:23,090 --> 00:21:26,780 Maybe this is beyond the scope of this is touches on a lot of other stuff here 213 00:21:27,140 --> 00:21:31,970 but algorithms I've acquired this kind of status whereby you know a question. 214 00:21:32,180 --> 00:21:39,889 So what he was going to say is that if we don't do take the price the market on the fact that we've developed make some 215 00:21:39,890 --> 00:21:44,450 calculation based on how many people are asking for rides and how many folks are out on the road driving the car. 216 00:21:44,690 --> 00:21:51,250 And there is some truth. It is true sometimes if all that those two factors have an impact on prices. 217 00:21:51,260 --> 00:21:55,370 Beyond that, it's actually quite hard to know what's going on under the hood here. 218 00:21:55,430 --> 00:22:02,839 Right, because you was still the alpha. And so a lot of people will say we don't dictate to market. 219 00:22:02,840 --> 00:22:09,620 Does you want to say, well, hang on a minute, who the [INAUDIBLE] cares? I mean, a newspaper might say to the plumber, 220 00:22:09,620 --> 00:22:13,849 but we've got a way of figuring out how many people are driving Toyotas today and probably think the prices. 221 00:22:13,850 --> 00:22:20,270 This doesn't follow that the person selling the labour must set their price accordingly. 222 00:22:20,750 --> 00:22:25,640 And I think the deeper issue here about the way in which we think about markets versus the people participating in. 223 00:22:27,150 --> 00:22:31,800 We talk about the market price. No such thing as a market price. 224 00:22:32,220 --> 00:22:35,130 But at the end of the day. There's nothing to the market. 225 00:22:35,150 --> 00:22:43,310 The market is a sort of beast or a force of nature that goes beyond the sort of smaller forces and beasts that sort of participate. 226 00:22:43,970 --> 00:22:50,720 Yeah. So in a way, the market price actually just depends on whether farmers feel like the market price for fixing a toilet. 227 00:22:51,350 --> 00:22:57,710 Sure. So depending on what companies want to stop as they negotiate based on rather than just what some of our. 228 00:22:59,780 --> 00:23:05,689 And there are other issues about the way in which algorithms have entered our lives and doing all sorts of damage, if not more. 229 00:23:05,690 --> 00:23:08,419 Talked to me about that. But I think when you stop, 230 00:23:08,420 --> 00:23:16,850 it will be too quick to some kind of you can see ground to algorithms that comes to think about how much a transaction is worth. 231 00:23:18,220 --> 00:23:22,840 Selling flavour. Something else very interesting to compare. 232 00:23:24,190 --> 00:23:28,389 Platforms and platforms that do have this restriction. Like you have platforms that start. 233 00:23:28,390 --> 00:23:31,990 So you've got the gig economy. You want to go what some might call the sharing economy. 234 00:23:32,680 --> 00:23:39,850 The distinction has something to do with whether you're selling labour for a platform like a driver's or plumbers, 235 00:23:40,240 --> 00:23:46,330 or whether you're just sharing an asset like you have that distinction mine of being a bit more complicated than it looks. 236 00:23:46,870 --> 00:23:54,530 Uh. Partly because if you have an Airbnb supply, you have to sort of do some work on the flat before people come out of state. 237 00:23:54,560 --> 00:23:57,320 Now, there was probably quite happy with what they gained, 238 00:23:58,550 --> 00:24:07,220 but it's notable that people don't get upset about Airbnb of the sharing economy apps in the way of the upset over delivery. 239 00:24:08,300 --> 00:24:16,000 I ask because partly because these apps do not try and deny suppliers the right to fix the price. 240 00:24:16,020 --> 00:24:23,030 So if you if you supply for Airbnb, if you see right now the only answer whether it be any of your tell you what they think the market 241 00:24:23,030 --> 00:24:28,120 prices for you feel kind of fine in your town this time of year but you don't have to take photos. 242 00:24:28,610 --> 00:24:31,969 Or maybe you should. This is your face price. Your price. 243 00:24:31,970 --> 00:24:41,810 You perform the price you want and see how you get on. Why do I want to say the same thing about who will offer what kind of price tag on this? 244 00:24:41,930 --> 00:24:44,270 There are more problems in the sharing economy. 245 00:24:45,380 --> 00:24:50,900 If your neighbours are laying a place out on Airbnb and you getting these noisy backpackers coming through the whole time, you know what I mean? 246 00:24:51,440 --> 00:24:56,900 But they're not really about the relationship between the platforms and the people supplying to riots. 247 00:24:56,930 --> 00:25:01,550 That's number two. Hamilton for time. Very good question. 248 00:25:01,850 --> 00:25:06,380 Always a good question. I want to wrap it up in the next 15 minutes. 249 00:25:06,410 --> 00:25:17,600 Oh, great. So number two, now, if you are a freelancer, you should have the right to make choices about what kinds of capital you're going to use, 250 00:25:17,600 --> 00:25:20,960 what kinds of stuff you're going to use to help you refine the service. 251 00:25:21,200 --> 00:25:24,930 All right. Platforms often deny this, right? 252 00:25:24,960 --> 00:25:32,030 Well, they restricted quite, quite significantly. And the best example here is, is something like Uber. 253 00:25:32,030 --> 00:25:37,519 Okay. So according to the if you want to drive for The Economist to make certain kinds of requirements, 254 00:25:37,520 --> 00:25:40,650 typically that's to be within a certain range of models in high schools. 255 00:25:40,670 --> 00:25:46,700 An 811i don't experience is always. Chatting to one of my other drivers. 256 00:25:46,880 --> 00:25:55,940 This is one of the middle aged white guys. And he was kind of livid that he had, you know, to be some kind of BMW, SUV, 257 00:25:56,690 --> 00:26:03,110 which was way better than a two year old Toyota trying to wipe out the two year old Toyota, such as the one he was in. 258 00:26:03,710 --> 00:26:08,180 And the customers not talk about their company behave. Well, let me drive you to Oakland. 259 00:26:08,600 --> 00:26:11,750 Even though you know a six year old BMW, you get the idea. 260 00:26:12,770 --> 00:26:20,540 And so then there are these rules which are. We might be more specific about what you can get us in the photo here. 261 00:26:21,500 --> 00:26:28,580 If you if you go on is that your money? Is that some drivers go quite far in providing the goodies? 262 00:26:29,000 --> 00:26:35,330 I've got seven candies in this picture here and how well you can see it, but there's some kind of hand soap here. 263 00:26:37,790 --> 00:26:41,420 I don't know what this is not about water or some kind of TV, 264 00:26:45,140 --> 00:26:52,340 but often that's something I sort of encourage to do over not necessarily coercively of it in ways that I'll come back to doing wrong. 265 00:26:52,730 --> 00:26:58,780 It's also evidence is also reportedly the saying that please don't talk to your customers about politics and about that. 266 00:26:59,420 --> 00:27:06,050 Again, this is I guess a conversation topic isn't really an investment capital, but, you know, it's a freedom nonetheless. 267 00:27:06,650 --> 00:27:11,930 So just to fill out the comparison again, I mean, I can't draw, 268 00:27:11,930 --> 00:27:17,540 I think work like an electrician or a plumber wouldn't be expected to adhere to these conditions. 269 00:27:17,540 --> 00:27:24,829 Right. If if the person if a platform or supplier of capital tried to say you can 270 00:27:24,830 --> 00:27:29,690 only offer the service using this probably within a certain ranges of eight, 271 00:27:29,960 --> 00:27:39,710 this would not be considered legitimate. I mean, imagine if on a 1980s column and I say look to the local paper and say I want to advertise. 272 00:27:40,070 --> 00:27:43,640 And they said, Well, you mustn't talk about politics when you go out to people's houses. 273 00:27:44,070 --> 00:27:49,000 I would not be considered within the range of reasonable demands on the platform today. 274 00:27:52,130 --> 00:27:57,020 Okay. So if you're a freelancer, renting is kind of up to you. 275 00:27:57,310 --> 00:28:00,920 All right. Because you work for yourself. 276 00:28:01,260 --> 00:28:07,260 You don't have to be a walking advertising for the capital that you use. 277 00:28:07,620 --> 00:28:10,920 All right. At least not not the default. 278 00:28:12,390 --> 00:28:20,490 But if you work for Deliveroo as a freelancer, this is exactly what you've got to do now because you've got a purpose in the picture. 279 00:28:21,570 --> 00:28:26,709 Yeah, the Deliveroo uniform and the box that goes on the back of the bike. 280 00:28:26,710 --> 00:28:38,850 And you've got to purchase these things and wear the marketing plan and be a kind of a walking cycling advert for delivery the whole time. 281 00:28:41,290 --> 00:28:44,980 And this is very much not an appetiser for you. It's an appetiser for the draft. 282 00:28:45,010 --> 00:28:57,550 It doesn't cost me anything about you being a good rider. It's all okay just to go back to the conceptual stuff again. 283 00:28:57,820 --> 00:29:06,280 The contrast that I might be having right now is that we wouldn't expect we would think this was legitimate in classified as a freelance work. 284 00:29:06,580 --> 00:29:12,370 If I'm an electrician, I buy some some tools from some manufacturer and they say, Why are you going to buy this? 285 00:29:12,580 --> 00:29:16,840 I would say, Well, advertising it wouldn't fly. 286 00:29:17,020 --> 00:29:24,370 Right. So that's because you are not the branding is something that a brand is what firm gets to have. 287 00:29:26,500 --> 00:29:30,690 And there's a reason for that. 288 00:29:30,700 --> 00:29:39,120 The default situation is that if a firm is called Francisco, some kind of the feasible right to have employees carry that brand around. 289 00:29:39,580 --> 00:29:45,820 But it hasn't got any kind of right to impose that kind of all on people with whom it has contracts, other kinds of contracts. 290 00:29:46,760 --> 00:29:56,950 So, yeah. And last but not least, lost and maybe lost is the right to continue trading, even if you don't like. 291 00:29:56,980 --> 00:30:05,320 Right? Right. And so the the the who how about platforms often includes this emphasis on writing. 292 00:30:05,650 --> 00:30:07,660 You can write to the drivers and they write you. 293 00:30:08,200 --> 00:30:16,460 And what the platforms can do and they can do this, by the way, they can do this pretty much regardless of what kind of write off. 294 00:30:16,480 --> 00:30:23,440 And they can just expelled from the platform. If you want the driver who decides what is being done before you can be kicked off. 295 00:30:25,450 --> 00:30:32,799 And this is what gives the platforms an awful amount of leverage when it comes to getting markets to comply with a of the other demands. 296 00:30:32,800 --> 00:30:39,670 And they even though they work as a free license. But again, this is not legitimate. 297 00:30:40,120 --> 00:30:46,209 This is not legitimate by all platforms. If I was a plumber, I just can't be good at the newspaper. 298 00:30:46,210 --> 00:30:50,020 Wouldn't that I have a right to expel me, but I. I'm saying from advertising. 299 00:30:51,190 --> 00:31:00,429 This wouldn't have happened if I'm willing to pay to advertise and I'm just a mediocre plumber would not get around the basement getting less gigs, 300 00:31:00,430 --> 00:31:06,070 less jobs. But it is not any platforms right to to stop me from trading. 301 00:31:07,540 --> 00:31:12,469 Of course, sometimes people can be mad, compelled to stop trading, 302 00:31:12,470 --> 00:31:16,210 blocked by law enforcement if they know that from such a bad comment on the health hazard. 303 00:31:16,510 --> 00:31:20,139 And then there's an independent case for me to stop trading. 304 00:31:20,140 --> 00:31:24,040 And importantly, that's that's not done at the discretion of some platform that's trying to get 305 00:31:24,040 --> 00:31:29,740 you to wear a brand is based on a certain authority of some independent body. 306 00:31:30,670 --> 00:31:34,510 Okay. At this point in my thing, I've been quite hard on these platforms. 307 00:31:34,510 --> 00:31:38,500 You might think that platforms or I've got a. 308 00:31:39,290 --> 00:31:45,150 A rejoinder. Well, they'll say what they might say is that, look, if we're labour, we don't force and we want to work. 309 00:31:45,350 --> 00:31:50,110 People work when they want to work. All right. Whoever doesn't say you have to work this money out. 310 00:31:50,120 --> 00:31:54,680 But that's what this is what distinguishes most distinguishes platforms from firms. 311 00:31:55,010 --> 00:32:02,959 Because when you sign an employment contract with someone referred, the firm has the right to say you will show up for work this many hours. 312 00:32:02,960 --> 00:32:08,830 How soon as you will sit down or something? Firms have got this right to say we will do something ourselves. 313 00:32:09,770 --> 00:32:15,400 Okay. Platforms don't have to. And they might say this, this is kind of this. 314 00:32:15,500 --> 00:32:24,120 Why don't you think about all this stuff? This is quite decisive. Two replies to this well is if we decide the platforms are really employers, 315 00:32:24,760 --> 00:32:28,510 there's nothing stopping the platforms from drawing on these kinds of contracts. 316 00:32:28,690 --> 00:32:37,690 All right. It's not obvious that it will be on Viber if whatever platform will be a with such contracts exist. 317 00:32:38,310 --> 00:32:41,760 And perhaps more, more, more persuasively. 318 00:32:42,990 --> 00:32:47,160 It's called open question when when a gig workers working or when they're not. 319 00:32:48,000 --> 00:32:54,300 So one of the problems, one of the complaints about these platforms is workers coming back from Seattle are willing to work. 320 00:32:54,920 --> 00:32:58,340 But not get longer afraid that this is not enough consumer demand. 321 00:32:58,670 --> 00:33:03,320 And this is great for the platforms because what the platforms really want is an oversupply of labour. 322 00:33:04,040 --> 00:33:10,759 They want consumers to be able to log into everything while it's content, but they want to have a supply of labour. 323 00:33:10,760 --> 00:33:15,290 They don't want to absorb the cost of oversupply. So they say, well, you just can't work. 324 00:33:17,250 --> 00:33:21,200 You know, like when you're driving around, like I was, you know, you don't get caught. 325 00:33:22,460 --> 00:33:26,430 Uh, but that that's off the debate. 326 00:33:26,460 --> 00:33:35,540 I mean, if I. If I go to the university to give an undergraduate lecture on how students are still working, 327 00:33:36,150 --> 00:33:41,330 when I still showing up for work, if I work in a supermarket and no one has to come in at night. 328 00:33:41,960 --> 00:33:45,530 As long as there's a firm statement can say all ten so bad you don't get paid. 329 00:33:46,610 --> 00:33:59,179 It's just not the way it works. So if we're arguing that, if the question is, are gig workers, employees or freelancers, 330 00:33:59,180 --> 00:34:02,820 well, you can't just assume you can't just assume the answer to this question. It's possible to issue. 331 00:34:02,840 --> 00:34:06,799 I think it's difficult. It's very difficult to resolve this point. 332 00:34:06,800 --> 00:34:13,970 But I certainly what what platform I call the reason platform owners want to declare workers as freelancers so they don't have to pay them 333 00:34:14,420 --> 00:34:23,000 when their labour is actually being performed or when there's no consumer paying for something some particular performance should say. 334 00:34:23,780 --> 00:34:27,799 All right. So excuse me to second, second stand. So you what? 335 00:34:27,800 --> 00:34:34,290 They want to be a freelancer. I would get those rights right from if I'm correct about that survey, what freelancers get. 336 00:34:34,320 --> 00:34:42,799 You get those at risk because the plumbers, electricians, if they go, you know, they want their backsides off distributing leaflets, 337 00:34:42,800 --> 00:34:50,600 advertising and go back to 1980s again, advertising in newspapers, distributing leaflets, talking themselves out of the problem. 338 00:34:51,980 --> 00:34:55,900 They come in also services. That's tough to back. That's the position of freelancers. 339 00:34:55,910 --> 00:35:01,610 It you get these freedoms but it's not the values the forms of your life. 340 00:35:01,610 --> 00:35:06,790 You're not to pay for it. There's no one to go to. You just don't get paid, okay? 341 00:35:06,890 --> 00:35:11,420 You want to improve or do something to get paid to induce people to pay you. 342 00:35:12,890 --> 00:35:18,440 And so because of that risk, employment contracts have a certain kind of appeal, right? 343 00:35:19,190 --> 00:35:25,160 You can trade the freedoms and get those guarantees. That's what makes the freedoms worth trading us the crucial thing. 344 00:35:25,640 --> 00:35:35,270 That's why it's worthwhile for many people to go to work in a supermarket and go to a uniform, have to work 7 hours because you get paid. 345 00:35:35,330 --> 00:35:38,990 Because no one comes to the shop, you get taxed. That's the difference. 346 00:35:40,040 --> 00:35:43,040 And so firms are right to post workers around and promote the brand. 347 00:35:43,610 --> 00:35:46,639 And by the way, there's a long tradition in the economics of the firm, 348 00:35:46,640 --> 00:35:53,570 has a long tradition of explaining or trying to explain why a hierarchical nature of firms improves the output of firms. 349 00:35:54,560 --> 00:35:57,680 So this sort of independent reason for wanting firms to exist, right? 350 00:36:00,080 --> 00:36:02,510 But having those rights is independently justified. 351 00:36:02,510 --> 00:36:08,960 Rights firms have got to give something back in return, and that's typically by way of the kind of guarantees that we see enshrined in labour law. 352 00:36:09,350 --> 00:36:11,600 Minimum wage, sick pay. 353 00:36:11,630 --> 00:36:16,910 I mean, there's disagreement about what the package of guarantees should be, but there are guarantees that don't accrue to freelancers. 354 00:36:17,300 --> 00:36:25,160 Yeah. And so the point of the freelance employee, in contrast, I think I'm suggesting, 355 00:36:25,640 --> 00:36:29,660 is that it should exist to give workers, people sort of their like these two options. 356 00:36:29,660 --> 00:36:34,280 Do you want to go freelance and have the rights to have the risk or do you want to go, 357 00:36:35,030 --> 00:36:39,650 uh, employment contract with the firm if you have some freedom and get some guarantees? 358 00:36:40,040 --> 00:36:47,320 And the distinction has a small substance only so long as this distribution of rights and duties state is balanced. 359 00:36:48,710 --> 00:36:52,340 And the worry about the gig economy is all about accident. 360 00:36:52,940 --> 00:36:56,659 Okay, so what does this mean for platforms? So what? 361 00:36:56,660 --> 00:37:01,160 The digital platform, the worst of it, absent regulation, what they're trying to do in many cases, 362 00:37:01,220 --> 00:37:06,320 they're trying to give workers the worst of both worlds. Right. They treat them like freelancers on the risk side. 363 00:37:06,590 --> 00:37:15,140 So if you get an injury, if you log onto the app and go Uber app and you tell them no one wants arrived or not enough people want to ride to bad. 364 00:37:15,200 --> 00:37:20,939 You suck up the cost of that. But it was still going to treat you like an employee on the command. 365 00:37:20,940 --> 00:37:24,899 So I'm still going to tell you when you get off this car, you have water in your car. 366 00:37:24,900 --> 00:37:26,760 You can't talk about this or that, etc. 367 00:37:28,210 --> 00:37:33,010 I'm not suggesting that he was the worst kind of platform here to suggest, you know, to some degree he's your platform to try and do. 368 00:37:33,070 --> 00:37:38,230 Yeah, really. Platforms need to be forced to make a choice. 369 00:37:38,380 --> 00:37:45,970 I think the framework is like employees and you give them the guarantees or you treat them like proper freelancers and you back off from some of 370 00:37:45,970 --> 00:37:57,700 this other stuff and you pass behind them more likely the apps and then the sharing of information about that which people often come up with. 371 00:37:57,700 --> 00:38:04,270 Question. There's there's no good reason why should platforms or consumers indeed get to have it both ways. 372 00:38:05,980 --> 00:38:12,610 It's all a question. I think they should just talk about going to the real world. 373 00:38:12,640 --> 00:38:20,980 I mean, what we also hear is most of it is really about trying to get to the foundational foundations of the misclassification complaints of code. 374 00:38:23,350 --> 00:38:28,169 Others are trying to actually apply the complaint by way of litigation and so on. 375 00:38:28,170 --> 00:38:35,620 And it's not evidence of unionisation among writer workers like fruit or delivery riders. 376 00:38:36,190 --> 00:38:41,560 My understanding is that the courts have not really upheld this as well as one might have hoped. 377 00:38:42,240 --> 00:38:51,790 Now there has been a judgement on Uber in the UK that it's an employer as employer, largely because it denies drivers this right to negotiate across. 378 00:38:52,730 --> 00:38:56,450 And that there was an employment tribunal a few years ago which said that. 379 00:38:58,040 --> 00:39:03,650 So remaining questions about the three different digital platforms is a lot. 380 00:39:03,860 --> 00:39:11,570 The gig economy is a lot bigger than the digital platforms, but digital platforms are often assumed to be the biggest part of the economy. 381 00:39:11,810 --> 00:39:15,460 That's largely because there is a growing lot that works without an Amazon brand. 382 00:39:15,470 --> 00:39:24,200 On higher education is one of the industries in which there's a trend away from 383 00:39:24,200 --> 00:39:31,040 traditional employment and more towards a gig like scenario of short term contract work, 384 00:39:31,120 --> 00:39:33,350 but short term contracts that resemble they work. 385 00:39:33,890 --> 00:39:44,600 So there's work to be done in trying to work through how articulate or not articulate certain complaints about the loss of platforms to that. 386 00:39:46,010 --> 00:39:51,440 There's also worries about what the platforms will comment that the court will not make it seem to have a properly positioned parties of it. 387 00:39:52,430 --> 00:39:57,260 In fact, Didi in China, which is the analogue of Hulu in China, 388 00:39:57,450 --> 00:40:05,270 is as strong as time worked out a way to check if its drivers are also selling labour for ever and then expelled once they do. 389 00:40:06,200 --> 00:40:10,940 And I stopped. I stopped over from getting going in China. So Didi's the phone platform. 390 00:40:11,510 --> 00:40:21,390 This is very anti-competitive. I. There's there's room for a lot of discussion about how to make platforms less prone to getting monopoly power. 391 00:40:21,600 --> 00:40:25,820 And if you can do that, chances are quite as powerful just to compete with each other. 392 00:40:25,830 --> 00:40:29,730 They'll have a reason to offer better wages and perhaps better conditions and more rights. 393 00:40:30,450 --> 00:40:35,640 There's a lot to be said about that. I'm running out of time, so I'm not going to say much more, but. 394 00:40:36,460 --> 00:40:40,390 Bottom line is there is a model. There may be many more problems in the economy. 395 00:40:40,420 --> 00:40:48,250 One more problem is better seen. If you're careful about what are you referring to when you talk about freelancers versus employees? 396 00:40:48,370 --> 00:40:56,440 And by careful, I mean if you tend to the philosophical foundation about why that distinction should exist, you might get somewhere. 397 00:40:57,400 --> 00:41:00,850 I don't think the whole problem of the gig economy is a problem of digital platforms, 398 00:41:00,850 --> 00:41:04,600 as such as anything else that really counts in favour of battered platforms. 399 00:41:07,260 --> 00:41:12,240 It counts. If I was thinking more carefully about this freelancer employee distinction and 400 00:41:13,080 --> 00:41:16,710 using our conclusions to tell us what we need to acquire our platforms to do.