Gig Workers Union Initiates Nationwide Shutdown Due to Fuel Price Hike

The CSR Journal Magazine

The Gig & Platform Service Workers Union (GIPSWU) has announced a nation-wide strike scheduled for today, responding to the recent fuel price increase as well as ongoing wage stagnation. The organisation has urged drivers and delivery workers affiliated with app-based platforms to halt their services between 12 noon and 5 pm. This action aims to highlight their demands for higher payments and compensation for the escalating costs of fuel.

Impact of Fuel Price Increases

The government implemented a fuel price increase of Rs 3 per litre for petrol and diesel, effective from Friday, which has raised concerns among app-based drivers and delivery workers. According to estimates, this increase will affect approximately 1.2 crore gig workers across India, presenting challenges that may lead to significant migration within this workforce.

The GIPSWU has requisitioned that both the government and digital platform operators enhance the per-kilometre service rates. The union’s statement highlighted that the increase in fuel prices is a pressing issue that could lead to a migration of workers seeking better opportunities elsewhere. This situation exemplifies the financial strains on gig workers, whose livelihoods are heavily reliant on affordable transportation costs.

Seema Singh, the president of GIPSWU, described the fuel hiking as detrimental to workers already grappling with the rise in costs for LPG cylinders. She emphasised that individuals working with companies like Swiggy, Zomato, and Blinkit will find it particularly challenging to cope with the added financial burden, especially during the current heatwave conditions. Singh has called on the authorities to establish a minimum service rate of Rs 20 per kilometre to alleviate some of the challenges faced by workers.

Challenges Faced by Gig Workers

Nirmal Gorana, the National Coordinator of GIPSWU, underscored the severe impact that increasing fuel prices have on gig and platform workers, many of whom depend on two-wheelers for their daily income. Despite a significant rise in expenses related to fuel and vehicle maintenance, payment rates from aggregating companies have reportedly remained stagnant. This scenario is particularly dire for workers in the unorganised sector, where they are already among the most disadvantaged groups.

In light of these developments, Gorana noted that individuals working as delivery executives and drivers are forced to navigate long hours — sometimes up to 14 hours daily — whilst facing arduous traffic conditions and extreme weather. This particularly affects women workers, who continue to bear the brunt of the operational challenges seen in the app-based service sector.

Additionally, according to estimates from NITI Aayog, the number of gig workers in India was approximately 77 lakh in 2020-21, with projections indicating that this figure may rise to over 2.3 crore by 2029-30. Workers often affiliated with platforms like Zomato, Swiggy, Zepto, Ola, and Uber are expected to cover significant distances daily, incurring mounting expenses for fuel and upkeep out of their own earnings.

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