Leading platform companies – Cabify, Deliveroo, Grab, MBO Partners, Postmates and Uber – have partnered through the World Economic Forum platform to create principles for the quality of the work that they facilitate.
The companies have agreed on The Charter of Principles for Good Platform Work, released today, which outlines eight key areas to address: diversity and inclusion; safety and wellbeing; flexibility and fair conditions; reasonable pay and fees; social protection; learning and development; voice and participation; and data management. The World Economic Forum has also released the white paper, The Promise of Platform Work: Understanding the Ecosystem, which outlines the different categories of digital work/service platforms, the opportunities and challenges they pose for workers and existing examples of good practice by platform companies in the areas covered by the Charter.
Companies operating digital platforms for individuals to hire out their services to businesses or consumers have experienced rapid growth in recent years and disrupted a range of sectors. Around 0.5% to 2% of the workforce in advanced economies is engaged in platform work, and the platform economy is growing, with global spending up 43% in 2018. These platforms range from ride-hailing apps to professional services.
Digital work/service platforms can offer affordable services to consumers, allow companies and clients greater opportunities to access talent, and provide flexible opportunities for earning income. But the rapid adoption of technology, innovation in business models and the diverse ways in which people work through platforms poses challenges for the current rules and laws governing work and safety nets.
A comprehensive approach is required that provides clarity and legal certainty, and empowers platform workers, promoting their dignity and wellbeing, while supporting flexibility, innovation and the value offered by the platform economy to users and clients. Platform operators should set strong standards to support those providing services through their platforms, and The Charter of Principles for Good Platform Work is a ground-breaking initiative by leading companies in the sector to collectively identify and commit to key principles that in their view should underpin good platform work.
“In an era of stakeholder capitalism, platform companies have come together to show leadership on improving outcomes for workers. The solutions to the challenges posed by the platform economy for working standards will come from a combination of policy changes, improved practice by platform companies themselves and dialogue between government, platform companies and workers’ representatives. These will be the next steps for this project at the World Economic Forum,” said Saadia Zahidi, Managing Director, New Economy and Society at the Forum.
The next stage of work will engage with a wider community including policy-makers and civil society stakeholders to discuss the practical measures required to support implementation of the principles for good platform work.
What the Leaders Are Saying
“Platform business represents an urgent challenge for regulation of labour markets to ensure formal work with rights, health and safety, minimum living wages or income along with the freedom to organize and bargain collectively and universal social protection. In the absence of Government action, it is pleasing to see this industry discussion. This initiative had its origins in an idea generated during a discussion with leading trade union organizations at the World Economic Forum’s Annual Meeting 2018 in Davos-Klosters. It represents an important start to the search for solutions for platform workers. While our position on the issues addressed in the Charter may differ in important respects from the principles that it sets out, we appreciate the acknowledgement of responsibility to promote good work and look forward to dialogue over the coming year,” said Sharan Burrow, General Secretary of the International Trade Union Confederation.
“Our industry should view this Charter as the baseline for good platform work, for the action we all must take to ensure the wellbeing of those who contribute to our businesses,” said Bastian Lehmann, Co-founder and CEO of Postmates. “These Charter principles serve as an important reminder that conversations about the future of work are about the upward mobility of those who power our economy, day in and day out. Postmates is proud to sign this Charter as yet another signal of our commitment to fighting for pro-worker, pro-innovation policies. We hope that every on-demand company will join us.”
“We are proud to contribute to the Platform Work Charter and continue the important work of advancing the next way of working for current and future generations. As we have observed in our now 10th year of collecting data on the independent workforce, self-employment is here to stay, with more than half of all adults in the US predicted to experience independent work at some point in their careers. The World Economic Forum is the platform that will help inform and motivate government and industry to take note and adopt policies designed to support this fast-growing, satisfied, and highly influential portion of the workforce,” said Gene Zaino, Founder and Executive Chairman of MBO Partners.
“Everyone has the right to benefit from the digital economy – to earn more, to choose flexible work, and to learn new skills. Over 20% of our driver-partners did not work before joining Grab. They’ve learnt to use a digital platform to find work, and many can now afford to send their children to school. In a developing region like Southeast Asia, giving people access to digital platforms can improve the quality of life significantly for the next generation. We hope to continue collaborating with governments and industry partners to create innovative benefits that look after even the smallest micro-entrepreneur or business,” said Anthony Tan, Group Chief Executive Officer and Co-founder, Grab.
Will Shu, Chief Executive Officer and founder of Deliveroo, said: “We know that riders want to balance flexibility and security. Riders who choose to work with us tell us that they want the freedom to choose when, where and whether to work, balanced with security. Deliveroo was the first platform to give riders free insurance to protect them in case something goes wrong while on the road and we have long argued that changes are needed to enable platforms such as ours to go further to give more benefits to self-employed riders. This Charter is an important piece of work to move that debate forward.”
Platform for Shaping the Future of the New Economy and Society
The Charter of Principles for Good Platform Work and The Promise of Platform Work report are part of the World Economic Forum’s Platform for Shaping the Future of the New Economy and Society. The Platform provides the opportunity to advancing prosperous, inclusive and equitable economies and societies. It focuses on co-creating a new vision in three interconnected areas: growth and competitiveness; education, skills and work; and equality and inclusion. Working together, stakeholders deepen their understanding of complex issues, shape new models and standards and drive scalable, collaborative action for systemic change.
Over 100 of the world’s leading companies and 100 international, civil society and academic organizations currently work through the Platform to: promote new approaches to competitiveness in the Fourth Industrial Revolution economy; deploy education and skills for tomorrow’s workforce; build a new pro-worker and pro-business agenda for jobs; and integrate equality and inclusion into the new economy, aiming to reach 1 billion people with better education, jobs, skills and economic opportunity by 2030.
Skills Development Vital to Enabling Transition to Industry 4.0 in Southeast Asia
Countries in Southeast Asia should consider developing industry transformation maps in key sectors to enable the transition to the fourth industrial revolution (4IR) with adequate investment in skills development for new and repositioned jobs, according to a new study by the Asian Development Bank (ADB).
The finding is one of six key recommendations emerging from ADB’s study Reaping Benefits of Industry 4.0 Through Skills Development in High-Growth Industries in Southeast Asia, covering Cambodia, Indonesia, the Philippines, and Viet Nam.
“The future of jobs is at the heart of development in Asia and the Pacific,” said Director General of ADB’s Sustainable Development and Climate Change Department Woochong Um. “While jobs have been lost to automation in recent years, new jobs will emerge as new and disruptive technologies are adopted. Now is the time to invest in skills development that will help displaced workers acquire the abilities necessary to move into new jobs and help job-seekers access quality jobs for greater prosperity.”
The study assesses two industries in each country deemed important for growth, employment, and 4IR. Based on employer surveys, the study reports large potential returns to businesses arising from productivity increases from 4IR technologies.
By 2030, there is likely to be a positive net impact in all industries analyzed with more jobs created than displaced. Although a third of agro-processing jobs in Viet Nam may be displaced, for example, substantial net job creation of 34% is possible. There could also be net increases of 39% for garments in Cambodia, 14% for food and beverage manufacturing in Indonesia, and 11% for IT-business process outsourcing (BPO) in the Philippines.
“The findings of the study point towards a clear path for the future in Southeast Asia,” said ADB Director General for Southeast Asia Ramesh Subramaniam. “While the region may face challenges in moving the displaced workers into new jobs due to inadequate skills, we are confident that countries will design appropriate policies and invest in workforce skills particularly to accelerate the post-pandemic recovery. We must do everything possible to ensure that no one is left behind.”
Employers in all industries surveyed stressed the importance of skills in the context of disruptive technologies. Together, they could need an additional 169 million people trained by 2030 to prepare for the transition to 4IR.
The study recommends strengthening on-the-job training and skills development for the jobs of tomorrow. It calls for developing industry-led technical and vocational education and training programs with dedicated credentials for 4IR, and flexible and modular skills certification programs that recognize skills attainment outside of traditional education channels.
The study revealed mismatches between training institutions and employers on the perceived readiness of graduates for the workplace. While 96% of training institutions surveyed in Indonesia believed their graduates were well-prepared for work, only 33% of food and beverage manufacturing employers agreed. In Cambodia, almost 90% of surveyed employers reported that graduates were inadequately prepared for entry-level jobs.
The study recommends upgrading training delivery through the application of 4IR curriculum and technology in classrooms and training facilities in close collaboration between industry and training providers to strengthen workforce readiness. The survey of training institutions revealed limited use of advanced technologies such as virtual and augmented reality and online platforms for training delivery.
The study calls for new approaches to strengthen inclusion and social protection for entry-level workers, those at risk of job displacement, and those who need upskilling. According to IT-BPO employers in the Philippines, manual and administrative jobs which are typically held by women are likely to see the largest losses, while females in Cambodia’s garments industry are more likely to be affected.
To ensure the welfare of workers, the study calls for a strong focus on reskilling and upskilling programs, and incentives schemes for employers to retrain workers. The Career-Up Josei-Kin program in Japan, which subsidizes employers to train individuals not on regular contracts is identified as a good example.
While the coronavirus disease pandemic is accelerating digital transformation, the study finds that companies deploying 4IR technologies are likely to recover faster from the disruptions caused by the pandemic and be more resilient in the future.
Thailand: Growth in Jobs Critical for Sustained COVID-19 Recovery
Thailand’s economy was severely impacted by the COVID-19 pandemic and is estimated to have shrunk by 6.5 percent in 2020. Growth is projected to expand by 4.0 percent in 2021, according to Restoring Incomes; Recovering Jobs, the latest edition of the World Bank’s Thailand Economic Monitor,” launched today. The report stresses that sustained recovery in employment will be essential to helping the country bounce back in 2021 and 2022.
In 2020, weak global demand, the sharp decline in international tourist arrivals, and domestic mobility restrictions depressed goods and services exports and private consumption. Exports and private investment are estimated to have declined by 18.5 percent and 4.4 percent respectively, while household consumption declined by 1.3 percent.
The resulting declines in income have created economic hardship for many, though the Government has made good progress in implementing a substantial package of measures to support households and firms. Nevertheless, projections indicate that an additional 1.5 million people may have entered poverty in 2020 due to the economic impacts of COVID-19, based on a poverty line of US$5.50 (2011 PPP) per day.
This year, the economy is expected to recover gradually, despite the recent second outbreak of COVID-19, and growth is forecast to pick up further to 4.7 percent in 2022. However, the recovery remains vulnerable to downside risks, including from an extended resurgence of the pandemic resulting in a prolonged stagnation in tourism and domestic activity, a weaker-than-expected global recovery that could lead to continuing trade and supply chain disruptions, and high household debt levels.
The pandemic’s impact has had a significant impact on Thailand’s labor market, with a particularly large increase in unemployment among young people. Hours worked fell, as did monthly incomes. Hours worked have not fully recovered, and employment in several sectors including manufacturing remains smaller than a year ago. This means the labor market is in a vulnerable position to confront any future shocks including a resurgence of COVID-19.
“The COVID-19 crisis and its economic impact have highlighted a key vulnerability for Thailand: the declining number of working-aged people, which compounds the challenge of recovering the economic losses of the last year,” said Birgit Hansl, World Bank Country Manager for Thailand. “Improvements in employment, productivity and labor incomes, especially among the poor, will be necessary for a sustainable recovery.”
The report recommends that in the short term, the government put in place training programs to improve workers skills and provide financial support while they get back to work. Ongoing efforts are required to ensure that education and training matches the needs of employers.
In the longer term, the government can increase employment in the care sector, make childcare more accessible and decrease its cost to help increase female labor force employment. The report also recommends increasing the retirement age and putting in place performance-based compensation schemes and flexible working arrangements to extend the working lives of older people.
“The decline in the working age population will reduce labor supply and economic output over the coming decades. Good jobs will need to be created in high-productivity sectors associated with Thailand’s emerging knowledge economy. Policies to boost labor productivity and labor market participation of older people and women can help promote a sustainable recovery from COVID-19, while addressing challenges associated with an aging population,” according to Kiatipong Ariyapruchya, World Bank Senior Economist for Thailand.
The World Needs to Wake Up to Long-Term Risks
For the last 15 years the World Economic Forum’s Global Risks Report has been warning the world about the dangers of pandemics. In 2020, we saw the effects of ignoring preparation and ignoring long-term risks. The COVID-19 pandemic has not only claimed millions of lives, but it also widened long-standing health, economic and digital disparities. Billions of caregivers, workers and students – especially minorities who were disadvantaged before the pandemic – are now at risk of missing pathways to the new and fairer societies that the recovery could unlock. According to the Global Risks Report 2021, released today, these developments may further impede the global cooperation needed to address long-term challenges such as environmental degradation.
When it comes to technology access and digital skills, the gap between the “haves” and the “have nots” risks widening and challenging social cohesion. This will particularly affect young people worldwide, as this group faces its second global crisis in a generation and could miss out altogether on opportunities in the next decade.
Financial, digital and reputational pressures resulting from COVID-19 also threaten to leave behind many companies and their workforces in the markets of the future. While these potential disparities could cause societal fragmentation for states, an increasingly tense and fragile geopolitical outlook will also hinder the global recovery if mid-sized powers lack a seat at the global table.
Once again, environmental risks dominate by impact and likelihood, looking ahead towards the next decade. Societal fractures, uncertainty and anxiety will make it more difficult to achieve the coordination needed to address the planet’s continued degradation.
For the first time, the report also rates risks according to when respondents perceive they will pose a critical threat to the world. Clear and present dangers (0-2 years) reveal concern about lives and livelihoods – among them infectious diseases, employment crises, digital inequality and youth disillusionment. In the medium-term (3-5 years), respondents believe the world will be threatened by knock-on economic and technological risks, which may take several years to materialize – such as asset bubble bursts, IT infrastructure breakdown, price instability and debt crises. Existential threats (5-10 years) – weapons of mass destruction, state collapse, biodiversity loss and adverse technological advances – dominate long-term concerns.
“In 2020, the risk of a global pandemic became reality, something this report has been highlighting since 2006. We know how difficult it is for governments, business and other stakeholders to address such long-term risks, but the lesson here is for all of us to recognize that ignoring them doesn’t make them less likely to happen. As governments, businesses and societies begin to emerge from the pandemic, they must now urgently shape new economic and social systems that improve our collective resilience and capacity to respond to shocks while reducing inequality, improving health and protecting the planet. To help meet this challenge, next week’s event, The Davos Agenda, will mobilize global leaders to shape the principles, policies and partnerships needed in this new context,” said Saadia Zahidi, Managing Director at the World Economic Forum.
The report also reflects on the responses to COVID-19, drawing lessons designed to bolster global resilience. These lessons include formulating analytical frameworks, fostering risk champions, building trust through clear and consistent communication, and creating new forms of partnership. The key risks outlined in the report are complemented with recommendations to help countries, businesses, and the international community to act, rather than react, in the face of cross-cutting risks. The report closes with an overview of “frontier risks” – nine high-impact, low-probability events drawn from expert foresight exercises – including geomagnetic disruption, accidental wars and exploitation of brain-machine interfaces.
“The acceleration of the digital transformation promises large benefits, such as for example the creation of almost 100 million new jobs by 2025. At the same time however, digitalization may displace some 85 million jobs, and since 60% of adults still lack basic digital skills the risk is the deepening of existing inequalities,” said Peter Giger, Group Chief Risk Officer, Zurich Insurance Group. “The biggest long-term risk remains a failure to act on climate change. There is no vaccine against climate risks, so post-pandemic recovery plans must focus on growth aligning with sustainability agendas to build back better.”
“Economic and societal fallout from COVID-19 will profoundly impact the way organizations interact with clients and colleagues long after any vaccine rollout. As businesses transform their workplaces, new vulnerabilities are emerging. Rapid digitalization is exponentially increasing cyber exposures, supply chain disruption is radically altering business models, and a rise in serious health issues has accompanied employees’ shift to remote working,” said Carolina Klint, Risk Management Leader, Continental Europe, Marsh. “Every business will need to strengthen and constantly review their risk mitigation strategies if they are to improve their resilience to future shocks.”
“The pandemic in 2020 was a stress-test that shook the foundations of economies and societies worldwide. Rebuilding resilience to systemic shocks will require significant funding, international cooperation and greater social cohesion. Resilience will also hinge on the continued growth in connectivity worldwide, as we know that economies that digitized early performed relatively better in 2020,” said Lee Hyung-hee, President, Social Value Committee, SK Group. “If the continued deployment of 5G and AI is to emerge as an engine of growth, however, we must urgently bridge digital divides and address ethical risks.”
The Global Risks Report 2021 has been developed with the invaluable support of the World Economic Forum’s Global Risks Advisory Board. It also benefits from ongoing collaboration with its Strategic Partners Marsh McLennan, SK Group and Zurich Insurance Group and its academic advisers at the Oxford Martin School (University of Oxford), the National University of Singapore and the Wharton Risk Management and Decision Processes Center (University of Pennsylvania).
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