Open Access Research Article
CHALLENGES FACED BY LABOR AND THE ROLE OF INTERNATIONAL LAW: IMPACT OF TECHNOLOGIZATION.
Published Paper
Article Details
CHALLENGES
FACED BY LABOR AND THE ROLE OF INTERNATIONAL LAW: IMPACT OF TECHNOLOGIZATION.
AUTHORED BY
- PIYUSH BHARTI,
ILA GARG &
PRACHI KUMARI
Abstract:
Labourers have always been considered
a vulnerable group. After industrialisation, in the present time, due to technologisation,
which includes intelligentisation, energy transition, and digitalisation, new
challenges for the protection of the rights of labourers are emerging. This
article covers the novel challenges that emerged due to technologisation at the
global level, especially for digital labourers, gig workers, and victims of
labourers due to the shift in energy sources from fossil fuels to renewable
sources.
The rapid growth of technology has
changed the skill requirements for employment. The employment pattern has also
been transformed from formal and organised to informal and unorganised. The
demand for gig workers has increased significantly. Intelligentization has
replaced human resources with artificial intelligence (AI) and robots. It has
been used in several types of employment, management, grievance redressal, etc.
This has not only given rise to unemployment problems but also the issues of
morality, accountability, legality, and recognition.
This paper highlights the need for
legal protection and recognition of the rights of unskilled and gig workers. We
will examine the laws and recommendations of international agencies such as the
ILO and WTO. This study also explores initiatives taken by countries such as
the USA, Italy, and India to address workers' issues. It will discuss legal
developments at the global level and international legal developments regarding
the same.
The paper will refer to various
reports and news articles to analyse the challenges labourers face globally and
what the existing international laws are to mitigate the evil consequences.
Keywords: Challenges’ of Labor; Technologization;
Gig Workers; Labor Market Outcome; Energy Transition;
1.
Introduction:
After the onset of Jio and demonetisation, the
rapid emergence of COVID-19 profoundly enhanced the pace of digitalisation.
The aftermath had pernicious effects on the economy, and its impact extended
beyond social life to affect the functioning of legal areas. Concurrently with
the digitalisation process, there is a simultaneous development in artificial
intelligence and energy transition. These all transform the mode and nature of
doing work and business. The emergence
of unorganised and informal working has given rise to challenges to the rights
and liabilities of workers and employers. The USA and Italy have taken steps to
broaden their legal scope and definitions to include these workers under the
purview of the workers' welfare scheme. Recently, the Rajasthan Government
passed the first bill for platform gig workers' registration, welfare and
taxation in India[1]. The
transition of energy from fossil fuels to renewable energy is good for the
environment and resource utilisation. But what has been done to protect the
rights of laborers (especially unskilled unorganised) and unemployment? The
requirement of skills and potential has been changed due to energy transitions.
Parallel to digitalisation, the
intelligentization is also going on. Human beings are replaced with Artificial
intelligence. This has given rise to unemployment and challenges to morality,
rights, liabilities, legal recognition, and regulations. Are present laws of
the world adequate to resolve these issues?
What are the futuristic challenges?
We will do comparative studies of the
municipal laws of different countries and international law. It will refer to
the various reports, news, and articles to highlight the current problems, status,
and challenges. What are the recommendations of ILO, WTO, and other
international agencies? What are the treaties, conventions, agreements, etc.,
signed globally? What is the status of those treaties, conventions and
agreements? The article will ponder the challenges and plights of workers,
especially unskilled and gig workers, due to non-implementation, non-regulation
and non-recognition of their status, rights, and social scheme.
2.
Digitalization and Labor Market:
Digital developments are
fundamentally altering the world of work and employment relationships. Implementing
lockdowns in response to the COVID-19 outbreak expedited these changes, causing
additional labour, consumption, and service supply shifts. The ILO Centenary
Declaration, labour unions, and government officials evaluated the discovered
patterns and changes in 2019. The taxonomy exposes the deficiencies in the
existing governance frameworks about digitalisation. Furthermore, it can
contribute to establishing an extensive structure for regulating the digital
economy that aligns with International Labour Standards, reduces societal
risks, and maximizes the enduring benefits of digital technologies.
2.1: Digital Labor:
As legislators, authorities, and
corporations adopt the gig economy and digital employment to promote economic
growth, it is essential to comprehend how this trend might affect workers’
financial stability. Based on an extensive study conducted over several years,
the primary concerns identified for tech workers in Sub-Saharan Africa and
Southeast Asia[2] are
their ability to negotiate effectively, their inclusion in the economy, the
presence of intermediaries in value chains, and opportunities for advancement.
While many workers derive significant
and concrete advantages, several hazards and expenses also disproportionately
impact digital workers' financial security. To elaborate on these concerns, the
four main tactics encompass certification plans, the organisation of digital
workers, regulatory approaches, and democratic monitoring of virtual employment
platforms. These techniques may be employed to improve the conditions and
livelihoods of digital workers.
The emergence of digital work has
occurred at the intersection of two concurrent processes. Underemployment and
unemployment are significant socio-economic problems that are causes of worry
for lawmakers. According to the International Labor Organisation, an estimated
213 million individuals will enter the work market between 2014 and 2019[3]. Furthermore,
a significant portion of the global landscape is becoming more prominently
defined by swiftly evolving interconnectivity. In just a decade, global
Internet connectivity has increased from less than 15 per cent to 40 per cent,
encompassing a significant portion of the world's population.[4]
The global population of individuals with internet connectivity has surpassed
three billion. In addition, a decade ago, the percentage of individuals in
low-income nations who had access to connectivity was below 8%. Currently, the
percentage exceeds one-third.[5]
2.2: Governance and Workers Rights:
The governance of digitalisation is
currently concentrated at the national and international levels. At the same
time, there are initiatives to establish a worldwide unified framework by the
OECD, the G20, and other UN organisations[6].
The OECD has created a paper, per the G20's request, that outlines the
difficulties in identifying, assessing, and managing the processes related to
digitalisation[7].
In the United States, businesses
misclassify workers as independent contractors, depriving them of fundamental
rights.[8]
These liberties encompass several protections, including wages and hours
safeguards, anti-discrimination measures, injury compensation, unemployment
assistance, and the ability to organise, among other advantages.[9]
Many businesses that utilise digital
technologies frequently assert that their employees profit from this
misclassification, purportedly favouring the freedom it offers. However, only
some employees have significant control or guidance over their jobs. These
workers discovered that they predominantly experience unfavorable working
circumstances and receive inadequate compensation[10].
In 2019, the International Labour Organisation
(ILO), the United Nations' governing body for establishing labour standards,
approved a tripartite declaration on the future of Work.[11]
The Declaration, which authorities, labourers, and employers supported, emphasised
the need to create a just and inclusive future of work with productive and
voluntary employment and satisfactory work conditions for everyone, including
digital workers[12].
Companies utilising digital tools utilise the WTO to negotiate new electronic
commerce agreements[13].
These accords can significantly influence digital work regulation in several
nations.
There are no universally accepted and
all-encompassing laws for the digital economy or digitalisation nor a
universally agreed-upon method to quantify its scope. Examination of the impact
of digitalisation can be based on the ILO Declaration on the Future of Work (2019),
the ILO Decent Work Agenda (2017), and the ILO Fundamental Rights at Work
(1998) paper. In India, recently, the Rajasthan government was the first
state to pass a bill to protect the rights of platform Gig Workers[14]. The bill mandates
the platform registration and empowers the government to impose a cess, which
would be a percentage of every transaction on the platform. This cess is to
finance a social welfare fund for the workers.
2.3: Intelligentization and
International Law:
Artificial intelligence is developing
alongside digitalisation. AI might replace digitalisation. Personification and
obligations of intelligent creatures became important after 2017 when Saudi
Arabia granted citizenship and a passport to Sophia, an artificially
intelligent entity[15].
Sophia visited Kolkata, India, in 2020 while touring 65 nations. Power TV, a Kannada language news station in
In[16]dia,
started the AI-based anchor named Soundarya[17]. In March 2023, India Today introduced Sana,
the inaugural news anchor for its Hindi channel, Aaj Tak. Subsequently, local news station OTV
presented Lisa[18], the
AI-based robotic news broadcaster.
In 2017, the European Parliament
suggested electronic personhood to regulate AI development and use[19].
Modern advances in replacing humans with advanced artificial beings have
brought questions of unemployment, ethics, legal accountability, part
regulations, morality, logic, pragmatism, etc. During the 4th Industrial
Revolution[20], the
World Economic Forum Centre held a three-day conference in San Francisco to
address the technological, ethical, and societal impacts of generative AI
systems.
Artificial intelligence regulation
began with the EU Act[21].
According to Stanford University's 2023 AI Index, 37 AI-related laws were
approved worldwide in 2022. China
introduced the earliest and most important generative artificial intelligence
rules, making it a leader. [22]
Some governments struggle with this issue, while others regulate AI research
and use. The EU's AI Act was the first genuine attempt to govern AI[23].
Given its autonomy, determining civil and criminal liability for AI-caused
injury or losses is crucial.
India does not have AI law despite
its worldwide technology leadership[24].
The Ministry of Commerce and Industry created an AI working force in 2018 to
develop a regulatory framework and find relevant applications.[25] The 2019 task group research outlined the
need.
3.
Challenges of Gig Workers:
With the rapid change in technology and digitalisation,
the nature of the labour market has also evolved. This evolution led to the
introduction of platform-based or gig-based workers in the market. Gig
employment refers to short-term contracts or freelance work agreements instead
of traditional employer-employee agreements. The growth of the gig economy
worldwide has also resulted in a noticeable increase in the gig economy in
India.
3.1 Challenges:
1. Social
Security Benefits- Traditional jobs often offer many social security
benefits like maternity breaks, pensions, and sickness benefits due to the
regulatory legislation. Still, as gig workers fall out of conventional
employment relations, gig workers are usually not afforded any social security
benefits[26].
The contractual gig work is based on an ambiguous employment relationship, giving
rise to uncertainty in social protection.
2. Uncertainty
of Income: The gig economy has a feature where the worker does not have any
obligations towards one particular employer, and in the same way, the employer
is also not beholden towards any worker. [27]This
frees employers and employees to choose and work according to their choice.
Still, alternatively, it also leads to many problems for the safety of workers
since the labour market is monopsonistic. This sector has both enough praise as
well as criticism. Due to the absence of a written contract, salary payment
transactions for gig workers frequently experience delays and are typically
below the minimum wage threshold..[28]
3. Long
Working Hours: The gig economy is characterised by zero-hour contracts,
which include the absence of defined minimum work hours, resulting in extended
work hours and late-night deliveries. A bad feature of this is that the
employees can be called for work at short notice as and when demand arises, and
employees, in turn, have no obligation to accept the work. These zero-hour
contracts threaten the quality of work, leading to long working hours and late-night
deliveries. The gig economy platform directs the work according to the market
4. Outdated
regulatory framework:
India,
which has led to a massive jump in the demand for gig workers. According to the
Taskmo report for 2022,[29]
the demand for gig workers increased tenfold. In contrast, the participation of
gig workers has risen by three times in the year 2022 compared to the year
2021.
The
legislative framework needs more security for gig and platform workers. The government in other countries also lacks
a law that maintains gig workers' social welfare and security.
3.2 International Laws and Treaties:
The Gig platform economy
has grown exponentially. At the same time, this growth has benefitted both the
consumers and the business areas, but it has also created a grey area in
employment relations for gig workers.
The Council and the European
Parliament have agreed on a proposed directive to improve working conditions
for platform workers. The recent deal will help formal adoption procedures and help
millions of gig workers access employment rights. This introduces two main
improvements. One is the correct employment status of gig workers working for
digital platforms and establishing the rules on using algorithm systems in the
workplace.
Efforts should be made to adjust
protective measures to align with the current state of labour markets. For
example, we may establish a presumption of job status with a contract for
personal service or other indicators. Alternatively, we could consider broader
meanings of "control" and "employment" to reflect the
changing nature of work management. For example, the ILO[30] has reported that legislators and courts have
implemented alternative assessments in many countries based on the economic
reality of the relationship. These assessments consider factors beyond the
employer's control over the worker's activities and economic dependence on the
employer.
The Department of Labour has
clarified the employment definition under the Fair Labour Standards Act in the
United States.[31] They
have outlined specific criteria that should be considered when determining if a
person should be considered an employee under the Act. This is important
because it determines if the person is entitled to minimum wage and protection
for working hours. The criteria are based on a "multi-factor 'economic
realities' test". The elements that are typically taken into account are:
(A) the extent to that the task being carried out is crucial for the employers
business; (B) the employee's interest for monetary profit or loss centred upon
their managerial capabilities; (C) the proportion of expenditures made by both
the company and the worker; (D) whether the work necessitates particular
expertise and leadership; (E) the length of the interaction; and (F) the degree
of authority generated or kept by the employer. In Italy, however, the Supreme
Court has determined in multiple instances that the legal criterion of
"subordination," like the notion of control in common law[32],
is satisfied even when the employer does not consistently micro-manage the
worker. This is the case when the nature of the work does not necessitate such
micromanagement for the employers to keep complete control over the work or
organisation. This phenomenon is not exclusive to civil law jurisdictions.
4.
Impact of Energy Transition on Labor:
The transition from fossil fuels to
renewable energy sources has an essential effect on labour markets, mainly
through worldwide energy transfer. The significant revolution has extensive
implications for labour markets worldwide since it reorganises employment
structures, skill requirements, and the entire economy.
The energy transition impacts the
regions that heavily rely on sectors dependent on fossil fuels. These regions
must consider ways to minimise the adverse effects on the labour market. The
primary focus of this debate is the impact of the recent decrease in
manufacturing jobs on job markets in the USA and other affluent nations. Like
the oil, gas, and coal sectors, manufacturing offers comparatively high
salaries to individuals who still need a college education. The decline in
manufacturing jobs over the past few decades has disproportionately affected
traditional industrial districts. Following the influx of Chinese imports,[33]
which led to the widespread shutdown of American manufacturing, many displaced
workers had challenges securing alternative employment within different
industries or relocating to other areas. [34] These
indicators remained at a depressed level for several decades. Impacted areas saw a decrease in the
formation of families, an increase in the number of children who were reared in
poverty, and a rise in death rates due to drug and alcohol misuse. [35]
According to the National Bureau of
Economic Research[36],
the potential impact of climate mitigation efforts on labour in
carbon-intensive businesses, sometimes known as "dirty" industries,
as the labour market in these sectors shrinks. By examining data from 130
million online work profiles, which represent almost 300 million job-to-job
transfers.[37]
The rate of workers moving from dirty
to green employment is increasing significantly. The number of accessible
environmentally friendly occupations, including professions associated with
electric vehicles (EV), is likewise growing, and these green careers provide
comparable prospects for more extended work periods.
The research reveals that older
people who do not possess a college degree have a lower probability of
transitioning into green occupations. Most labourers who obtain green
employment do not originate from polluting sectors; most are entering the
workforce for the first time[38].
Moreover, the considerable level of continuity observed in undesirable
occupations in certain regions indicates that there could be constraints on the
availability of alternative job opportunities that local labour markets provide
to individuals being replaced by the fossil fuel sector.
4.1: Recommendations and Regulations:
As per recommendation 5[39],
the primary objective of energy policy is to align with economic, industrial,
labour, educational, and social initiatives. Recommendation 10[40] customize
the employment and social protection policies to cater to the distinct
requirements of individual regions and countries. Renewable energy has
promising potential for utilising local resources due to the relatively simple
transfer of technology and the high need for low- and medium-skilled workers in
its many sectors. It is important to emphasize that policies should also
promote a fair transition by addressing issues related to employment,
developing skills, training, and social safety nets.
A job creation model was developed in
the US that analyses employment creation in the US electricity industry from
2009 to 2030[41]. The
model amalgamates data from 15 job studies encompassing renewable energy (RE),
energy efficiency (EE), Carbon Capture and Storage (CCS), and nuclear power.
Renewable energy, energy efficiency,
and other low-carbon techniques provide more employment per unit of energy,
coco ethanol and natural gas, which are non-renewable fossil fuel sources.
Implementing ambitious energy efficiency measures alongside a 30% renewable
portfolio standard (RPS) goal by 2030 can create over four million
full-time-equivalent job-years by that year[42].
Furthermore, raising the share of nuclear power to 25% and carbon capture and
storage (CCS) to 10% of the overall energy supply by 2030 might result in an
additional 500,000 job-years.[43]
The DG of IRENA, the IREA, and the ILO
[44]
have agreed to strengthen collaboration to advance jobs and quality jobs for
both genders throughout an energy transition that ensures inclusivity. Both
organisations currently engage in several working together endeavours,
including the Sustainable Energies and Jobs Platform (SEJP) within IRENA's
Coalition for Action, ILO's Fair Transition and Green Job Initiatives, which
are guided by the ILO Tripartite Guidelines for a Just Transition Towards
Environmentally Sustainable Economies and Societies for All, and IRENA's
Collaboration Framework on Just and All-inclusive Energy Transition.
5.
Conclusion and Suggestions:
In contemporary times, the
way and nature of work have been transposed due to rapid digitalisation and technologisation,
including intelligentisation and energy transition. Most formal and organised
works have been transformed into unorganised, informal, and contractual. These
have all given rise to several challenges of workers' rights, liabilities,
unemployment (especially to unskilled and illiterate workers), and regulations.
Due to a lack of
legislation, regulations, and modus operandi, the plight of workers, especially
gig and unskilled workers, has been enhanced manifold. International labour
laws and agencies are still ignorant about these. No significant action has
been taken. Only a few countries have taken steps to curb these issues at the
global level.
The USA and Italy have
broadened their legal scope and definition to cover these workers under the
purview of their worker welfare legislation. There is a need for a strict model
law with strict implementation and regulation for the rights and liabilities of
these workers. International bodies and countries should take necessary
measures to control the evil consequences of this.
[1] Sobhana K
Nair, ‘Gig Workers’ Bill Races to Beat Election Season in Rajasthan’ The
Hindu (7 October 2023)
<https://www.thehindu.com/news/national/rajasthan-gig-workers-bill-races-against-time-with-impending-poll-date-announcement/article67393035.ece>
accessed 7 January 2024.
[2] ‘World
Employment and Social Outlook 2015: The Changing Nature of Jobs’ (2015) Report
<http://www.ilo.org/global/research/global-reports/weso/2015-changing-nature-of-jobs/WCMS_368626/lang--en/index.htm>
accessed 7 January 2024.
[4] ‘Press
Release: ITU Releases 2016 ICT Figures ...’ (ITU)
<https://www.itu.int:443/en/mediacentre/Pages/2016-PR30.aspx> accessed 7
January 2024.
[6] ‘Statement
by the OECD/G20 Inclusive Framework on BEPS on the Two-Pillar Approach to
Address the Tax Challenges Arising from the Digitalisation of the Economy -
OECD’
<https://www.oecd.org/tax/beps/statement-by-the-oecd-g20-inclusive-framework-on-beps.htm>
accessed 7 January 2024.
[8] ‘Misclassification,
the ABC Test, and Employee Status: The California Experience and Its Relevance
to Current Policy Debates’ (Economic Policy Institute)
<https://www.epi.org/publication/misclassification-the-abc-test-and-employee-status-the-california-experience-and-its-relevance-to-current-policy-debates/>
accessed 7 January 2024.
[11] ‘ILO
Centenary Declaration for the Future of Work, 2019’
<https://www.ilo.org/global/about-the-ilo/mission-and-objectives/centenary-declaration/lang--en/index.htm>
accessed 7 January 2024.
[15] Alistair
Walsh Walsh, ‘Saudi Arabia Grants Robot Citizenship – DW – 10/28/2017’ (dw.com)
<https://www.dw.com/en/saudi-arabia-grants-citizenship-to-robot-sophia/a-41150856>
accessed 11 September 2023.
[16] The Hindu
Bureau, ‘Soundarya, Kannada’s First AI News Anchor Debuts on Power TV’ The
Hindu (14 July 2023)
<https://www.thehindu.com/news/national/karnataka/soundarya-kannadas-first-ai-news-anchor-debuts-on-power-tv/article67079375.ece>
accessed 11 September 2023.
[18] ‘Meet
Lisa, India’s First AI Bot That Reads News in English, Odia’ (FE Tech Bytes,
10 July 2023)
<https://www.financialexpress.com/life/technology-meet-lisa-indias-first-ai-bot-that-reads-news-in-english-odia-3163360/>
accessed 11 September 2023.
[19] ‘EU AI
Act: First Regulation on Artificial Intelligence | News | European Parliament’
(6 August 2023)
<https://www.europarl.europa.eu/news/en/headlines/society/20230601STO93804/eu-ai-act-first-regulation-on-artificial-intelligence>
accessed 14 September 2023.
[20] ‘Global
Push to Regulate AI, plus Other AI Stories This Month’ (World Economic Forum,
2 May 2023)
<https://www.weforum.org/agenda/2023/05/top-story-plus-other-ai-stories-to-read-this-month/>
accessed 14 September 2023.
[22] Theara
Coleman published, ‘How Countries around the World Are Trying to Regulate
Artificial Intelligence’ (theweek, 4 July 2023)
<https://theweek.com/artificial-intelligence/1024605/ai-regulations-around-the-world>
accessed 14 September 2023.
[24] Amar
Patnaik, ‘AI Needs Responsible Regulation’ (BusinessLine, 31 July 2023)
<https://www.thehindubusinessline.com/opinion/ai-needs-responsible-regulation/article67143172.ece>
accessed 14 September 2023.
[26] Aastha
Behl and others, ‘Barriers to Entry of Gig Workers in the Gig Platforms:
Exploring the Dark Side of the Gig Economy’ (2022) ahead-of-print Aslib Journal
of Information Management.
[28] ‘(PDF)
The Role of Customers in the Gig Economy: How Perceptions of Working Conditions
and Service Quality Influence the Use and Recommendation of Food Delivery
Services’
<https://www.researchgate.net/publication/348591346_The_role_of_customers_in_the_gig_economy_how_perceptions_of_working_conditions_and_service_quality_influence_the_use_and_recommendation_of_food_delivery_services>
accessed 7 January 2024.
[29] ‘Demand
for Gig Workers Increased by 10 Times in 2022, Says Report’
<https://www.business-standard.com/article/companies/demand-for-gig-work-increases-10-times-in-2022-says-taskmo-report-123011300914_1.html>
accessed 7 January 2024.
[30] Valerio
De Stefano, ‘The Gig Economy and Labour Regulation: An International and Comparative
Approach’ (2018) 4 Law Journal of Social and Labor Relations 68.
[33] Gordon H
Hanson, ‘Local Labor Market Impacts of the Energy Transition: Prospects and
Policies’ (National Bureau of Economic Research, January 2023)
<https://www.nber.org/papers/w30871> accessed 3 January 2024.
[36] Juliana
Rosati, ‘Study: Green Energy Transition May Leave Some Workers Behind’ (School
of Social Policy & Practice, 14 August 2023)
<https://sp2.upenn.edu/study-green-energy-transition-may-leave-some-workers-behind/>
accessed 6 January 2024.
[39] ‘Theme
Report On Energy Transition, Towards The Achievement Of SDG 7 And Net-Zero
Emissions’ United Nations, <https://www.un.org/sites/un2.un.org/files/2021-twg_2-062321.pdf>
accessed 6 January 2024.
[41] Max Wei,
Shana Patadia and Daniel M Kammen, ‘Putting Renewables and Energy Efficiency to
Work: How Many Jobs Can the Clean Energy Industry Generate in the US?’ (2010)
38 Energy Policy 919.
[44] ‘IRENA
and ILO Work Together for a Just and Inclusive Transition to a Sustainable
Energy Future’ (18 October 2021) <http://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_823281/lang--en/index.htm>
accessed 6 January 2024.
Article Information
CHALLENGES FACED BY LABOR AND THE ROLE OF INTERNATIONAL LAW: IMPACT OF TECHNOLOGIZATION.
Authors: PIYUSH BHARTI, ILA GARG, PRACHI KUMARI
- Journal IJLRA
- ISSN 2582-6433
- Published 2024/06/29
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
- Access Open Access
- License CC 4.0
All research articles published in International Journal for Legal Research and Analysis are open access and available to read, download and share, subject to proper citation of the original work.
Disclaimer: The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of International Journal for Legal Research and Analysis.