This case study focuses on the interests and lived experiences of the “non-employed”, gig-app driver workforce, versus the interests and strategies of the companies (e.g. Uber, Amazon) that use the services of these workers. In this case study you will critically analyse the employment relationship between the gig-app driver workforce and the companies that use the services of these workers, and you will weigh the merits of both parties’ claims. You will identify the implications of this relationship, and you will consider the merits of radical change to the status quo. You will also reflect on the contemporary relevance and value of the two conflict / radical change paradigms, which you will be drawing on throughout your report.
For each section of your entire report you must draw explicitly on:
This assignment is important and authentic because it will help you to understand the origins of conflict affecting organisations, and the relevance and importance of radical change movements to contemporary organisational life. This assignment will round out your ability to look at organisational problems from multiple perspectives. With this more rounded knowledge, you will be better placed to tackle organisational problems thoughtfully, and with regard to multiple stakeholders. You will also be better able to anticipate conflict and how this might impact organisations and their legitimacy.
ASSESSMENT REQUIRMENTS
1. Listen to the podcast (in its entirety), “My boss is an app”, available on The Uncertain Hour, Season 5, Episode 8, March 24, 2021, Marketplace:
https://www.marketplace.org/shows/the-uncertain-hour/my-boss-is-an-app/ (Links to an external site.)
This link is also available in the Assignments section of the Reading List.
2. You must draw on radical structuralism, radical humanism/neo-humanism, and at least one other concept/theory from Weeks 6 though to 11 throughout each section of your report, which is to fulfil the following requirements:
*Proposition 22 is a law passed in California which designates gig-app drivers as independent contractors, rather than as employees of the companies that use their services, thereby denying gig-app drivers the rights and protections that are usually available to employees.
ESSENTIAL ELEMENTS, IN ADDITION TO THE ABOVE REQUIREMENTS
Organizational Analysis
Conflict of Interest
A conflict of interest typically occurs when an organization becomes unreliable because its interests conflict with its responsibilities. In the context of the case study, the companies’ goal is to maximize their profits, but this goal conflicts with their responsibility to provide social protections and employee benefits to their workers. Currently, gig workers are categorized as independent contractors instead of employees, meaning they are exempted from employment benefits and protections like minimum wage guarantees, overtime pay, health insurance, termination protections, paid sick days, etc. This categorization provides the tech-based companies access to the workers’ full-time services but exempts them from the responsibilities of such commitments.
On one hand of the spectrum, this gig-based economy provides society with the goods and benefits it requires. The majority of the workers revealed that they signed up for these jobs because they had no other alternative. Therefore, the platforms provided them an income to fulfill their needs (Crossman, 2020). Regardless of its capitalist merits, this economy made it possible for the locals to meet their needs by providing an income source. Without the platforms or wages gained from the platforms, the lives of these workers would possibly be worse. Even if the incomes are small, they improve one’s life. Therefore, from the functionalist perspective, this gig-based economy satisfies its economic role in society.
However, these economic advantages come at a cost. Many modern-day conflict theorists have criticized the capitalist merits of the gig-based economy, especially how the companies treat their workers. These companies keep their status as elite members of society because they can control the local economy. This control also gives them the power to exploit those at the bottom and keep them in their’ place,’ There are divergent views on how these conflicts can be handled. Other scholars feel this conflict can be reconciled, while others think it must be eliminated.
Implications of Current Conditions on Workers, their Families, and Communities
Mental Health
The case study reports that these jobs negatively affect the workers’ mental health. For example, a former worker revealed that he was always anxious while working his gig-app job due to the tight deadlines and work conditions (Marketplace, 2021). Failing to meet the deadlines or company targets had repercussions, including being non-payment or being fired or “de-activated.” These repercussions stressed the workers mainly because most depended on these jobs as the primary income source. Thus, failing to meet targets also meant not being able to cater to your own needs or your families, causing stress. Another worker, Julie, said she always felt like a ‘failure’ every time she failed to meet the company’s expectations. Other workers had no other choice but to persevere with the harsh working conditions, explaining the mental health issues experienced by the population.
Poverty
The current conditions perpetuate the cycle of poverty in families. Most workers cannot support their families. According to Marketplace (2021), many gig-app workers’ wages are below the local minimum wage. For example, Marketplace (2021) cites a local survey, which indicated that approximately 34% of the gig-app workers earn below their local minimum wage. Most of these workers worked full-time and depended on these platforms as their primary source of income. Yet, almost half cannot afford to pay for $400 emergency expenses, and 15% depend on public assistance for survival. Marketplace (2021) states that most of these workers need to make enough to meet their basic needs, i.e., pay rent and put food on their table.
Inequalities
It affects the community by causing inequality. The majority of people working the minimum wage are minority groups. According to Marketplace (2021), approximately 60% of the gig-app workers identify as either Black, Latino, or Asian. Another study showed that 78% of the delivery workforce are people of color and 56% are immigrants (Marketplace, 2021). Most of these social groups have very little political and economic power, and these income inequalities help entrench these conditions. Earning below the minimum wage keeps these communities poo and denies them the opportunities to move up the social ladder.
Proposition 22 Merit Claims
Proposition 22 is a statute passed that designates App-based drivers as independent contractors, precluding them from various employee benefits and social protections. The law also exempts tech-based companies from certain obligations, e.g., accident liabilities that may arise during non-engaged hours.
Proponents of Proposition 22 argue that this statute has improved flexibility for the gig workforce. Many Gig-App workers have confirmed this notion, stating that she values flexibility because it allows them to balance work and personal responsibilities. A recent survey by the Harvard Business School revealed most drivers assign a significant value to freedom and flexible schedules. Approximately 75% of the Uber drivers supported the legislation because it offers flexibility and freedom.
Neo-humanists believe that humanism or de-generated humanism is a barrier to social harmony. Avadhuta (2009) points out an interesting neo-humanist perspective that applies to this case study. These theorists believe that political leaders often try to justify their policies even if they violate human rights. According to neo-humanists, political leaders use terms such as “brotherhood,” “internationalism,” “peace,” and “democracy” to justify actions that contradict the real ideals of humanism. For example, national leaders have historically used “world peace” to start wars or justify invasions. In this context, tech-based companies use “flexibility” to justify exploiting workers. The Neo-humanists hold that when social circumstances become unfavorable, e.g., in the face of inequalities, human value diminishes, and humans engage in conflicts.
Various surveys have shown that Gig-App workers value flexibility and freedom, but none of these are provided by the companies. Marketplace (2021) reveals that the tech-based companies promise flexibility to workers, but in the real sense, the workers have to be flexible to accommodate the companies’ requirements. Additionally, independent contracting is by no means the only way to guarantee flexibility in employment, demonstrating that the practice is predatory. Neo-humanists point out that when economic development comes at the expense of social justice, it increases the risk of crises and conflicts that may threaten social harmony. Because Proposition 22 perpetuates social injustice and disharmony, it should be dismantled. Also, the merit claims supporting the legislation are illegitimate because the companies do not offer flexibility.
These companies justify these practices by arguing that asking them to pay social benefits to app-based workers would force them to raise prices, restrict access to their platforms, and reduce the availability of services, which would eventually harm the workers. However, a closer analysis of their business models reveals that this is not necessarily true. These companies can make profits while giving these benefits to gig-app workers, meaning they have been exploiting the workers for their self-interests.
Part 2.
Dismantling Proposition 22 Merits
Many states and the federal government are working to remove the legislation that excludes the Gig-workers from accessing social and employee benefits protections. Policymakers are pushing for the Protecting the Right to Organize (PRO) Act at the national level. This legislation aims to designate the gig workforce as employees instead of independent contractors. Many companies believe that these new legislations will harm their businesses, but the opposite is true. First, dismantling Proposition 22 will allow the companies to dismiss internalized exploitation and domination.
The radical paradigm believes that workers’ acceptance of labor or contractual agreements is obtained from social conditioning, not consensus. The flexibility slogan best illustrates this social conditioning. Gig work is degrading and oppressive, but the workers are inclined to think it is a source of satisfaction because it offers them freedom (Heery, 2016). The nature of gig-based work is objectively degrading, but it is seen as a source of pride for the workers. Tirapani & Willmott (2021) argues that these workers have lived in a system where they are dominated and exploited. Hence, flexibility creates an illusion of freedom (social condition), explaining why the workers view independence as a gift. Petriglieri et al. (2019) stated, “The fantasy is one of being unconstrained by the bondage of an employer in which imagined, or occasionally experienced, episodes of “ecstasy” are mask or compensate everyday instances of “agony.”
Many companies are currently using corporate social responsibility as a brand image strategy. The benefits of CSR have been established by scientific literature. Studies have shown that CSR can improve a company’s profitability, competitiveness, and brand image. Most importantly, CSR helps the company obtain stakeholder loyalty, including employees. These capabilities can help the business achieve a competitive advantage in the market. CSR involves improving socio-economic conditions in the community where the companies operate. As indicated earlier, the majority of the workers in the Gig-App sector are minority groups stuck in a cycle of poverty perpetuated by structural factors. According to the CSR principles, these companies owe these communities, especially because they benefit from labor. As part of their CSR, the companies can help remove structural factors perpetuating society’s poverty. Instead of offering flexibility, the companies should provide better social protections and salaries. These offerings will give the communities the resources required for social mobility, empowering them. According to [find journal article online that supports this statement and cite], these CSR activities can improve the companies’ relationships with stakeholders and increase their profitability. This strategy is an ethical way of maximizing profits.
Secondly, the companies can reduce radicalization. Tirapani & Willmott (2021) defines radicalization as collective demands for structural transformations instead of adjustments.
A study conducted by Tirapani & Willmott (2021) indicates that failing to suture grievances will eventually lead to confrontation and radicalization. These grievances will first reform the relationship between the workers and people purchasing their labor (companies). When these relationships become strained, the workers will express their grievances by switching to competitors or verbalizing to third parties, e.g., friends, family, journalists, etc. (Tirapani & Willmott, 2021). These expressed grievances can erupt in radical conflict, transformative changes, or activate political logic. These conflicts will initially be silent or latent but continue mounting until a certain threshold.
Considering how tech-based companies have responded to the conflicts, this escalation is possible. Most have attempted to retain the status quo and made statements like “it is their problem!”, “they are just moaning,” etc. Ultimately, these grievances will erupt, leading to conflict. To begin with, the workers may reject their designation as self-employed contractors. Alternatively, they may engage in collective action (e.g., unionize or strike action) to withdraw their labor from the market, activating radical political action (Tassinari & Maccarrone, 2017).
This political action is underway as many institutions, and legal actors consider restructuring employment. The status change from an independent contractor to an employee will radically alter social institutions that embody social inequality. The workers will have employment protections, reducing the inequalities between social groups. In contrast, the organization will need to change its business models to achieve its goals, explaining why it is in its best interests to respond to the concerns and grievances of the workers meaningfully. They can reach a consensus that will benefit the workers and the companies without the need for changing whole systems.
Insights from the two conflict paradigms
Radical Structuralism is described as people having different ideologies and beliefs due to different values making people resist. People look at many versions of reality, leading to conflicts and dissents in organizations due to the power of differences in ideology. According to my ideology, I am on the contractors’ or Julie’s side because I come from the same background in my childhood, and I deeply understand her circumstances. She had to become a contractor to make a living because of the financial hardships that she went through.
Neo-humanism suggests that true insight can only be achieved if barriers to free thought are abolished (Burrell & Morgan, 2017). However, Julie should be categorized as an independent contractor so that she can acquire proposition 22 as the decision confirming her. The company has spent more than two hundred million USD to ensure that the proposition is passed in California. On the other hand, other contractors and Julie can no longer do the lobbying because they are financially unstable. Therefore, it becomes unfair to the workers because of the invaluable insight. Knowledge is rejected if it does not hold at the innermost level with the effects on human beings (Burrell & Morgan, 2017). The company’s decisions become meaningful only if it considers human beings. However, Amazon does not consider contractors when establishing its policies. In addition, most Asians, migrants, and Latin American workers account for 60% of those who have difficult conditions. They are underpaid and do not have access to the employees’ entitlement. The company’s decisions lead to increased poverty levels and are invaluable.
References
Avadhuta, A. V. (2009). Neo-humanism, globalization, and world futures. Global Transformations and World Futures-II, 114.
Burrell, G., & Morgan, G. 2017. Sociological paradigms and organizational analysis: Elements of the sociology of corporate life. Routledge
Crossman, A. (2020, January 28). The sociology of social inequality. Thought Co. https://www.thoughtco.com/sociology-of-social-inequality-3026287
Heery, E. (2016). Framing work: unitary, pluralist and critical perspectives in the 21st century. Oxford University Press
Marketplace. (2021, March 24). In gig work, your boss is an app – The Uncertain hour from marketplace. Marketplace. https://www.marketplace.org/shows/the-uncertain-hour/my-boss-is-an-app/
Petriglieri, G., Ashford, S. J., & Wrzesniewski, A. (2019). Agony and ecstasy in the gig economy: Cultivating holding environments for precarious and personalized work identities. Administrative Science Quarterly, 64(1), 124-170.
Tassinari, A., & Maccarrone, V. (2017). The mobilization of gig economy couriers in Italy: some lessons for the trade union movement. Transfer, 23(3), 353-537
Tirapani, A. N., & Willmott, H. (2021). Revisiting conflict: Neoliberalism at work in the gig economy. Human Relations, 001872672110645. https://doi.org/10.1177/00187267211064596
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