A gig economy, according to Investopedia, relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees. It is also known as the sharing economy or access economy.
The gig economy is no doubt becoming part of life. Gig work, therefore, is reshaping the global workforce. The rapid rise of the economy is reshaping traditional labour structures, presenting both opportunities and challenges for workers and unions alike.
According to Musa Okello, the chairman of the National Organisation of Trade Unions (NOTU) and general secretary of the National Union of Educational Institutions, navigating the complexities of the gig economy and striving to protect workers in non-traditional employment is proving to come with new hurdles. This is because gig workers often provide their own resources, such as vehicles or the internet, to complete their tasks.
“This makes it hard to calculate their benefits. They are effectively employing themselves, yet they depend on platforms that take no responsibility for their well-being,” Okello says.
How it works
Some platforms have workers operating independently but are tied to a system controlled by larger corporations. They, therefore, work with no formal employer-employee relationship.
“There are companies that operate without an office in Uganda, yet many people here depend on them for their livelihoods. The company takes its share of earnings overseas while workers lack basic protection such as social security or pensions,” Arinaitwe Rwakajara, the Workers’ MP says.
This sentiment is echoed by Okello, a labour rights advocate and worker in the informal sector. He recalls his struggles with exploitative pay and unpredictable hours.
“I would work tirelessly, yet the pay rarely reflected the effort. You do not have health insurance, nor do you have savings. It is a very precarious existence,” he says.
Research and the need for regulation
To address these issues, NOTU has prioritised research into the gig economy.
“We want to understand the dynamics between gig workers and the consumers of their services. This is crucial because unions cannot effectively advocate for workers without fully grasping their challenges,” he says.
He stressed the need for government to establish regulations that define responsibilities for platforms operating in the gig space.
“Right now, these companies benefit without contributing locally. They do not pay taxes here, and workers remain vulnerable. It is an unsustainable system,” he stresses.
Unions face a significant challenge in organising gig workers, given the lack of structured workplaces. Arinaitwe stresses that unions must innovate to remain relevant.
“We need to recognise gig workers as professionals contributing to the economy. That recognition will be the first step towards designing solutions that work for them,” he says.
Arinaitwe also points to the International Labour Organisation’s (ILO) recognition of the informal sector, which includes gig work, as a critical area for union engagement.
“We have agreed at ILO level that the informal sector is now our focus. If unions do not adapt, we risk becoming irrelevant,” he warns.
Both leaders agree that the future of unions lies in their ability to embrace the gig economy.
“It is a learning curve, but if unions innovate and show gig workers their value, we can transform the labour movement to meet modern challenges,” Arinaitwe says.
Impact on traditional unions
While the gig economy has not yet fully infiltrated unions, Okello warns that its impact is inevitable. This is because traditional employment is shrinking as more people move to online work or gig jobs.He pointed out that unions need to act quickly to include gig workers in their membership.
“We cannot wait until the sector is too large to influence. This is why we are engaging young workers and focusing on education about their rights.”
Despite the challenges, Okello sees opportunities in organising gig workers.
“Even in the gig economy, workers need a collective voice. Whether it is negotiating better pay from platforms or ensuring access to healthcare and pensions, unions can play a vital role,” he says.
Raising awareness is a key strategy since many gig workers do not even know unions can represent them.
The future of gig work and unions
Okello noted the urgency of addressing the gig economy’s growth: “This is not just a trend - it is the future of work. If unions do not engage with it, they will lose relevance as traditional jobs disappear,” he says.
NOTU is already taking steps by conducting research and engaging with young gig workers.
“We need strong regulations, continuous education, and a collective effort to ensure that the gig economy works for everyone - not just the platforms they are profiting from,” he says.
