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Tilt the scale in favour of workers in gig economy
![economy](/resource/image/4445254/landscape_ratio2x1/320/160/92c0acb9d0e7a3b92c4707ee8ec3f303/iV/conomy-growth.jpg)
Taxes against gig economy operators should be minimal as they should keep as much of their earnings as possible.
In an economy, factors of production include things like land and capital. But the most important is human labour. And human history has been a struggle of capital and labour.
Modern humanity is facing myraids of problems, among them climate change and wars. Our hearts must go to the children suffering in Middle East, Ukraine and many parts of Africa like Somalia, Sudan and the Democratic Republic of Congo due to war.
But notwithstanding this, historians agree the past 300 years has been the best for humanity, in terms of objective measures like increment of life expectancy generally.
Notwithstanding the current war horrors, they are fewer in comparison but our media interconnectedness magnifies any scuffle anywhere in the world.
But the greatest reason for the overall advancement of humanity in recent millennia has been labour extracting more benefits from capital.
As Ian Morris illustrates in his book Why The West Rules, For Now, globalisation is levelling civilisational differences between areas.
Hence ideas on labour-capital relationships move from the West and percolate to Africa .
The labour rights that accrue to labourers in most societies including Kenya are good and important as they ensure working environment is fair and humane.
A labourer in a typical employment, for instance, a member of the National Assembly or Senate employed by the Parliamentary Service Commission, a teacher employed by Teacher Service Commission or a bank employee, have typical benefits.
They include medical insurance coverage to insure against medical emergencies; pension to ameliorate life once an employee leaves employment; leave days which often are paid to an employee. Such employees will work for a specific period.
If they work beyond the set period, they will be entitled to some extra allowance.
Labour when appreciated, the owners of capital benefit more through improved productivity and dedication employees put in their work.
The forgotten
If an allegations of misconduct is raised against them ,the law provides the process has to adhere to certain principles of nature justice — right to be heard ,right to legal representation and appellate process.
But there are people who offer labour or their work to society who do not enjoy the aforementioned privileges that many take for granted.
This " forgotten lot " incidentally tends to be the majority and most productive ironically.
Labour productivity basically means the ability to " get the job done " and being paid exactly for that job.
For instance ,if one's task is to move a chair from point A to point B within one hour ,achieving those parameters is what is called labour productivity.
If one moves the chair in two hours, that labour is less productive. If one moves the chair in less than one hour, then that person is very productive. If one doesn't move the chair and is paid anyway, that is unproductivity of the highest order.
And there are many in several sectors who are paid notwithstanding not moving the chair.
Think of the member of parliament who does not contribute to the plenary and is paid notwithstanding; the drunkard doctor who is in employment notwithstanding never attending to clinics.
But the "forgotten lot" have no such privilege. The forgotten lot includes the Mama Duka who have established a shop that serves the estate.
She opens her shop at 5am and closes at 10pm. A conventional employee works between 8 and 5pm — Mama Duka sleeps four hours.
And works from Monday to Monday. If she doesn't open her shop, she will not earn. She has no union to agitate for anything. Forgotten lot includes the casual labourer who is paid "piecework" to till land.
The employer will give such an employee exact duty to till specific area and pay per every area tilled.
Such persons have no pension nor do they have medical insurance cover. He has no Union.
Think of tea pickers in rural settings. Or hawkers in the street. Or mechanics. Or an Uber driver whose movement is metred. The more they work, the more they earn.
Masons constructing our houses- their work is measured by output. The social media socialites — the more likes they accrue, the more the money.
For this lot, they will not be paid unless the chair is moved from point A to B.
This lot belongs to what is called the gig economy. This is a labour market that is characterised by short-term contracts and freelancing.
Employees in a gig economy have no security but they have freedom and flexibility.
Unlike labourers in formal and permanent jobs, such persons in these informal sectors have no voice.
They do not have unions. Neither are they near power where decisions are being made.
This sector employs millions of Kenyans who are unable to secure jobs in the formal sector. It is only fair that decision-makers come up with deliberate initiatives to improve the work environment for these workers
For any country to prosper, it is imperative to recognise and support the gig economy because it guarantees the creation of jobs.
Say Unlike parliamentarians, who are decision-makers or governmental staff near them who can influence them.
What can government do to help labourers in this gig economy or this forgotten lot? Governmental policies should be skewed in their favour.
Government bursaries should target such persons. Universal Health benefits like NHIF cards should target such labourers.
Loan schemes that government always establish like Uwezo fund should give preferable to such persons.
This will improve poduction and when production increases, opportunities are created for the jobless.
Mama Duka main concern is a low regulatory regime — county and revenue officials should avoid harassing such hardworking persons. Complex regulatory regimes chock businesses and make it difficult for prospective investors to establish or expand their ventures. Streamlining the regulatory regimes and putting them under one roof reduces costs and avenues for corruption that cartels take advantage of to either frustrate investors or demand favours.
Taxes against this group should be minimal as they should keep as much of their earnings as possible — they need every coin. In fact, the government stands to collect more taxes when this economy is thriving and consumption is increased.
- Dr Kang’ata is the Governor of Murang’a County, Email: [email protected]