Good gig? New employment proposals for contract workers could make it better — Thomas A. Kochan

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

From WBUR Cognoscenti

Last week, Sen. Elizabeth Warren unveiled a comprehensive set of proposals to provide basic employment policy protections and income security benefits to those working in the so-called “gig” economy and others in subcontracted or franchised arrangements. Whether one agrees with her specific ideas or not, the nation owes her a debt of gratitude for putting these issues front and square on the table for a discussion that is long overdue.

The gig economy, best embodied by Uber, Lyft and Task Rabbit, may account for less than 1 percent of the workforce, but it has sparked a debate over what to do about all those who make their living outside of standard employment relationships.

Standard employment relationships are ones in which there is a clearly defined and identifiable employer that is responsible for complying with the range of employment laws put on the books since the New Deal: unemployment insurance, Social Security, minimum wage and overtime rules, and the right to unionize and gain access to collective bargaining. To be clear, the vast majority of American workers, about 85 percent to be exact, still work in this type of employment relationship.

But the last decade has witnessed increased erosion of this model, with the growth of subcontracting, outsourcing, franchising, on-call, temporary and, more recently, gig economy workers. Between 2005 and 2015, the number in these nonstandard work relationships increased from 10 to 15 percent.

Read the full article at WBUR Cognoscenti.

Thomas Kochan is the George Maverick Bunker Professor of Management, a Professor of Work and Employment Research, and the CoDirector of the MIT Sloan Institute for Work and Employment Research at the MIT Sloan School of Management.

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