International Labour Organization adopts convention for platform workers

The International Labour Organization (ILO) Conference approved by qualified majority the new “International Convention for the Protection of Workers on Digital Platforms,” establishing that delivery and ride-hailing app companies (such as Uber, Rappi and Mercado Libre) must recognize an employment relationship and enroll their couriers in public social security systems.

The international instrument requires platforms to cover workplace accident insurance and pension contributions, guarantee a minimum wage calculated by hours of availability, and prohibit the arbitrary deactivation of accounts through unaudited algorithms. The measure directly benefits more than 4.8 million couriers and service engineers in the main capital cities of Latin America.

Representatives of the Digital Commerce Chambers of the region said the rule will raise operating costs by 25%, threatening to pass the fare increase on to end users or reduce the presence of the apps in mid-sized cities.

What SurEconomics thinks:

The ILO resolution is a historic victory for young people in precarious jobs, since multi-location platforms can no longer evade basic labor rights.

Sources:

·       International Labour Organization (ILO): Adoption of the Convention on Decent Work in Digital Platforms

·       ECLAC: Impact of platform regulation on youth employment in Latin America