Uber's digital labour platform and labour relations in South Africa

Abstract

Motivation

With rising unemployment in South Africa, new forms of digital work transcend legal conceptions and discourses on work. Uber's digital labour platform (DLP) has the potential to reduce unemployment and improve the livelihoods of South African households.

Purpose

We examine the nature of employment through digital platforms to assess how such employment conforms to labour law and regulation in South Africa, the responsibility of the Department of Employment and Labour (DEL).

Methods and approach

We review the literature on the gig economy, decent work, and labour relations. We examine Uber DLP in South Africa to assess its potential to create decent work given DEL's current labour regulations. We analyse factors that harm the relationship between Uber DLP and DEL.

Findings

Despite numerous constitutional provisions governing DLP and DEL, Uber DLP workers in South Africa are considered independent contractors not entitled to employee benefits. Uber DLP employees in South Africa make less than the national minimum wage after the platform deducts its fees. Few professional drivers own the cars they drive; they rent them from owners, known as “partners,” and split the earnings, meaning that the drivers earn very little.

Policy implications

DEL needs to establish a balance between flexibility and labour standards. DEL should preserve workers' rights and ensure financial stability in the digital age. Labour laws should be updated based on reliable data while considering the effects of digitally enabled employment on society and the economy. Platform workers need the same protection at work as other workers.