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22 June 2021 | Story André Damons
Gig economy and Uber
Left: Associate Prof Denine Smit is a lecturer in the Department of Mercantile Law, Faculty of Law, University of the Free State (UFS) where she currently lectures several modules with her focus on Labour Law. Right: Mr Grey Stopforth is a lecturer in the UFS Department of Mercantile Law, Faculty of Law.

Opinion article by Associate Prof Denine Smit and Mr Grey Stopforth, Lecturer, Department of Mercantile Law, Faculty of Law, University of the Free State 

Introduction
The modern world of work is changing rapidly – to such an extent that by 2030, 65% of primary school learners will take up positions currently unknown to man. ‘Gig work’ is an umbrella term comprising three distinct types of services: capital platform work, crowd work, and app work. (Duggan et al. 2019:117) ‘Gig work’, within the labour context, is regarded as an umbrella term comprising two distinct types of work: crowd work, and app work. Each of the previously mentioned types of gig work performs a particular service in the gig economy. To illustrate, crowd work refers to work that ranges in skills level and difficulty, which is outsourced to a large pool of online workers, for example, tasks available on Freelancer and Fiverr. In contrast, app work (also known as on-demand work) involves an application (app) that connects clients and workers via the online platform to perform tasks, also referred to as ‘gigs’, in a specific geographical area. This type of gig work consists of various types of tasks, such as ride-sharing services (e.g., Uber and Bolt), cleaning services (e.g., SweepSouth), and the running of errands (e.g., TaskRabbit and Errandworld). Uber currently serves more than 10 000 cities worldwide.  

The previous three industrial revolutions were prompted by disruptions that occurred through the harnessing of steam. The discovery of telecommunications and computers and technological advancements led to the internet of things, a typical characteristic of 4IR. It is in 4IR where the new techno-economic paradigm needs to be addressed. This is where robotic devices could replace humans. We now face two sides of the coin: working in a digitised environment where workers are not protected by traditional labour laws, such as Uber drivers, or seeking formal employment where there are not enough standard jobs.  

The changing landscape
The modern industrial workplace is already characterised by the introduction of several robotic devices that could easily replace human capital in the future. Examples hereof are rife:  Libby is a robot at the University of Pretoria that assists students. A social humanoid robot called Sophia, created with her ‘own’ passport, was interviewed on her own at the UN, and is regarded as our first digital citizen. We also have Deep Blue, an IBM computer that defeated the world's best chess player, and Watson, another IBM computer that beat the Jeopardy! champions, as well as robots that can now play the piano, grade high school tests, paint, compose music, and write newspaper articles. (Doci & Virgillito 2019: 602). A job for life and a physical workplace may both disappear in future and be replaced by gigs for payment, flexibility, and continuous learning. The COVID-19 pandemic fast-tracked 4IR, and this is becoming worrisome in South Africa, where we reached formal unemployment figures of 32,6% (7,2 million) and 42,6% (11,4 million) if discouraged work seekers are added to the mix. More critical, South Africa's youth unemployment rate is at a staggering all-time high of 74,7% (STATS SA, 5 April 2021). We need to look at new opportunities in the gig economy, like Uber, to earn a living and alleviate poverty.

Uber and work
Uber is merely an example of ‘work’ on the platform, but many gig workers are not protected by law. If we focus on the new categories of workers, such as those working for Uber, the legal landscape is exciting and problematic. However, problems have led to sporadic strike actions in several African countries such as Kenya, Nigeria, and South Africa.

In January 2021, Uber Eats drivers in South Africa laid down their 'tools' by deactivating their apps as part of a nationwide strike action in response to a decision taken by Uber Eats South Africa to lower the fee paid to drivers per delivery.  Later in March 2021, Uber and Bolt drivers from South Africa engaged in strike action, demanding that e-hailing companies adopt a fair pricing strategy, and that their own and their passengers' safety be prioritised. Other African countries followed suit shortly thereafter. In the past year, many app workers have brought court claims in different countries in the hopes of obtaining full employee status. Let’s see what happens in other countries.

United Kindom (UK)
On 19 February 2021, the Supreme Court in the UK ruled in Uber BV v Aslam (2021) UKSC 5 that Uber drivers are ‘workers’ rather than self-employed independent contractors. The court outlined several key factors to justify its decision, most of which relate to the degree of control that Uber has over its drivers. Based on this, the court found that drivers were, in reality, ‘workers’ and not independent contractors, which implies that they are legally protected.

Australia
A recent decision by Australia’s Fair Commission (FWC) in Diego Franco v Deliveroo Australia Pty Ltd (2021) FWC 2818, could impact Uber’s operation in the country in the future. On 18 May 2021, the commission ruled that a former Dilveroo driver was an employee of Deliveroo rather than an independent contractor. The FWC emphasised the importance of standing back from the detailed picture and looking at the overall effect of the relationship. Similar to the UK ruling, the FWC also noted that Deliveroo was able to implement or withdraw a significant level of control over Mr Franco, which was a decisive factor indicating the existence of an employment relationship. Having considered the facts, the FWC found the driver to be an employee of Deliveroo, and he was therefore entitled to unfair dismissal protection. Whether this decision will stand in the future remains to be seen, as Deliveroo has indicated that it will appeal the FWC's decision.

United States of America (USA)
Similar to many other countries, the USA also has several cases with mixed judgements. For the purpose of this opinion piece, we will single out Proposal 22 (Prop 22), which was passed in California at the end of 2020. The Prop provides drivers with a guaranteed minimum earning for the time worked while actively providing rides, compensation for some vehicle expenses, occupational accident insurance to cover injuries and illnesses on the job, and ‘funding for new health benefits’ that apply to drivers with prescribed minimum hours per week.

Spain
A new royal decree regulating delivery app workers, also known as the ‘rider law’, was ratified by Spain's cabinet in March 2021. The new ‘rider law’ introduces additional provisions for a new presumption regarding the existence of an employment relationship in the context of the delivery and distribution of products through digital delivery platforms. The decree also makes it mandatory for gig businesses to inform the app workers’ legal representatives of the parameters, rules, and instructions on which the algorithms or artificial intelligence (AI) systems are based, which affect decision-making that may influence working conditions, access to, and maintenance of employment, including profiling. The law comes into effect 90 days following its publication in the Spanish Official Gazette. The gig businesses, therefore, have until mid-August to comply.

The way forward for South Africa
It is currently uncertain whether South Africa’s Uber drivers will be classified as employees or independent contractors. See Uber South Africa Technology Services (Pty) Ltd v National Union of Public Service and Allied Workers (NUPSAW) and Others (2018) 39 ILJ 903 (LC), in which the Labour Court held that the Commission for Conciliation, Mediation and Arbitration’s ruling failed to consider the fact that Uber SA and Uber B.V. are two separate entities. The question as to whether Uber drivers are employees of Uber was subsequently left unanswered. Each country has a unique and intricate statutory framework that regulates the traditional work relationship, making a universal approach to classifying on-demand workers almost impossible. However, it would be in our best interest to be mindful of these developments to pursue a workable solution that fits our South African context.

Thus, the jury is still out on whether gig work is good, bad or a little of both.

News Archive

UFS Winter Graduation Ceremony
2012-06-18

UFS awards record number of master’s degrees and doctorates

The University of the Free State (UFS) celebrated an increase in postgraduate successes with a record number of master’s degrees and doctorates that were awarded during the winter graduation ceremony at the Bloemfontein campus on Thursday 14 June 2012.

A total of 481 master’s degrees and 82 doctorates were awarded in two ceremonies in the Callie Human Centre on the Bloemfontein Campus. This is the most postgraduate qualifications to be awarded at a single graduation ceremony.

DiMTEC has reason to celebrate

Dr Andries Jordaan (second from right) with some of the people who received their master's degrees. From the left are Kehinde Balogun, the couple Olive Chisola-Darris en Clement West Darris, and the couple Everson Ndlovu en Patience Sibongile Ndlovu.
Photo: Leatitia Pienaar
18 June 2012

DiMTEC had reason to celebrate at the winter graduation ceremony. The Disaster Management Training and Education Centre for Africa delivered a healthy crop of 32 master’s degrees and one doctorate.

This was the most master’s degrees that the centre has been awarded at one opportunity. The doctorate, however, was not at DiMTEC – Andries Jordaan, the director of the centre, obtained his Ph.D. in Agricultural Economy.

It was also the first time that two couples received their master’s degrees at the centre at the same time.

Speaking at the event, Dr Jordaan said former students of the centre were using their expertise worldwide. Some of them are in senior positions at the United Nations, in African countries, Afghanistan, and elsewhere. DiMTEC’s students hail from 17 African countries, including French-speaking countries.

“I am proud that we have a footprint right across Africa,” he said.

Three travel all the way from Europe for their MBAs

Smiles on an important day. From the left are: Kasina Baker, Friederike Hackelberg, and Johanna Kössler and her parents and sister.
Photo: Stephen Collett
18 June 2012
No distance, time or money could prevent three MBA graduates from Europe from attending the winter graduation ceremony in Bloemfontein. Two of them were exchange students who were so captivated by the university and the country that they undertook their MBA studies at the Business School.

Friederike Hackelberg of Bremen, Germany, was an exchange student in 2008 and extended her stay to do an MBA. Johanna Kössler of Bolzano, Italy, was also an exchange student who succumbed to the charms of the UFS and South Africa. She brought her parents, George and Nannie, and her sister, Magdalena, with her to attend the graduation ceremony.

Kasina Baker of Warsaw, Poland, began her studies while her husband was working in Kenya. She wanted to study at a quality institution and thus chose the UFS's Business School.

Jessica gets three prestigious medals

Jessica Potgieter (right) was the first student in almost three decades to receive three prestigious medals at the Winter Graduation Ceremony. She received the Dean's medal as best Master's student in the Faculty of Natural and Agricultural Sciences, the Senate Medal as best Master's student at the university and the Award for Scientific Achievement by the South African Association for the Advancement of Science. She is seen here with her mother, Mrs Ilse van Rhyn, and Dr Khotso Mokhele, Chancellor.
Photo: Johan Roux
18 June 2012
Three daughters, three degrees for proud Kovsie mom
Liezel Alsemgeest and Adri Kotzé.
Photo: Leonie Bolleurs
18 June 2012

Adri Kotzé, Faculty Manager in the Faculty of Law, is a very proud parent. In the course of one year, all three her daughters will receive degrees from the University of the Free State (UFS). First in line is the eldest, who received her Ph.D. in Business Management at the Winter Graduation Ceremony.

Liezel is a lecturer in the Department of Business Management at the UFS, where she lectures, publishes and hopes to further her research in finance. “I enjoy working at the university because you have the freedom to do your own thing and focus on whatever you like,” she says.

The title of Liezel’s thesis is Customers’ perception of business units within an agricultural business in South Africa. Her focus is on the subjects of customer satisfaction and financial management, with a specific focus on the management of agricultural businesses.

Middle sister Corné will be graduating with a master’s degree in Occupational Therapy in December, while the youngest, Adéle, will receive her B.A. in Media Studies and Journalism at the Autumn Graduation Ceremony in 2013.

“I am very proud of all three my daughters,” says Adri.

Sasolburg minister receives Dean's Medal for best master's degree in Theology
Rev. Frans Redelinghuys.
18 June 2012

Rev. Frans Redelinghuys of the Reformed Church in Sasolburg received his master’s degree in Theology at the University of the Free State’s Winter Graduation Ceremony. Rev. Redelinghuys was also awarded the Dean’s Medal as the best master’s degree student in the Faculty of Theology.

The focus of his dissertation is Spirituality. “My lecturers are all people who practice what they preach and they have shared their knowledge with me.,” he says.

“My studies also contributed to my personal development,” says Rev. Redelinghuys.

Student from the Netherlands receives degree at UFS Winter Graduation Ceremony

Deborah Van den Bosch-Heij.
Photo: Leonie Bolleurs
18 June 2012

Deborah Van den Bosch-Heij from the Netherlands was awarded a Ph.D. at the Winter Graduation Ceremony by the Faculty of Theology of the University of the Free State (UFS). Her thesis, Spirit and healing in Africa: A reformed pneumatological perspective, is an interdisciplinary investigation of the relationship between the Holy Spirit and healing in Southern Africa. The research addresses the need for a reviewed and contextually reformed approached to healing.

Deborah started her career as a minister at the Valkenburg Congregation of the Protestant Church in the Netherlands in 2001. She was appointed by the missionary department of her church to lecture at the Justo Mwale Theological University College in Lusaka, Zambia in 2005. It was here that she decided on the topic of her thesis. Prof. Rian Venter from the Department of Systematic Theology at the UFS, who is also involved at the Justo Mwale College, is Deborah’s promoter and assisted her in her studies whilst she was in the Netherlands. It was also Prof. Venter who made Deborah aware of the importance of interdisciplinary research.

Well-known judge's granddaughter receives degree

Judge Joos Hefer and Annelie de Man.
Photo: Leonie Bolleurs

Annelie de Man, a law researcher at the Supreme Court of Appeal in Bloemfontein received her master’s degree at the Winter Graduation Ceremony of the University of the Free State (UFS). She is Judge Joos Hefer’s granddaughter. Annelie was also awarded the Dean’s Medal as the best master’s degree student in the Faculty of Law.

“Today is one of the biggest highlights in my career,” says Annelie, who received exposure to the field of law from a young age.

In September, she will be leaving for Italy to study for a master’s degree in European Human Rights at the European Inter University.

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