Chris Hedges – On Contact: The Gig Economy

Feb 5, 2022 • On the show Chris Hedges discusses the gig economy to Louis Hyman, Professor of Economic History at Cornell University.

After the end of World War II two generations of workers in the United States were blessed with a period of unprecedented prosperity. Wages for the working class were high. Jobs were stable and came with benefits and health insurance. Unions protected workers from abuse by the business elites. Taxes on the wealthiest individuals and corporations was as high as 91 percent. The public school system provided a quality education to the poor and the rich. The nation’s infrastructure and technology were cutting edge and unrivaled. But by the 1970s it all began to go south. Wages stagnated. Income inequality grew, until by 2008 the top wealthiest 10 percent of Americans received 87 percent of the economic growth, compared with 29 percent from 1933 to 1973. The good industrial jobs vanished. In their place rose the temp or gig economy, one where wages were low, the jobs were not secure and did not provide benefits, unions were emasculated and the nation’s great democratic institutions, along with its infrastructure, crumbled into decay. What went wrong? How did it happen? And what does it mean for our future?

Louis Hyman is Professor of Economic History at Cornell University, and author of Temp: The Real Story of What Happened to Your Salary, Benefits and Job Security.

Gig Economy Workers to Get Employee Rights under EU Proposals

THE GUARDIAN: Draft legislation would improve status of millions of workers, with likely knock-on effect on UK despite Brexit

Gig economy companies operating in the European Union, such as Uber and Deliveroo, must ensure workers get the minimum wage, access to sick pay, holidays and other employment rights under plans for new laws to crack down on fake self-employment.

Publishing long-awaited draft legislation on Thursday, the European Commission said the burden of proof on employment status would shift to companies, rather than the individuals that work for them. Until now, gig economy workers have had to go to court to prove they are employees, or risk being denied basic rights.

Nicolas Schmit, EU commissioner for jobs and social rights, told the Guardian and other European newspapers that internet platforms “have used grey zones in our legislation [and] all possible ambiguities” to develop their business models, resulting in a “misclassification” of millions of workers.

In the EU’s 27 member states, about 5.5 million workers are misclassified as self-employed, when they should be treated as employees with benefits and protection, such as accident insurance, according the commission. Firms would only have to pay minimum wages, where they already exist. About 28 million people work for platforms in the EU, but this is expected to reach 43 million by 2025. » | Jennifer Rankin in Brussels | Thursday, December 9, 2021

Brexit may not stop EU’s gig economy reforms from reaching UK: Analysis: UK-based firms may find it easier to fall in with Brussels’ proposals to give casual workers more rights »